Chanel is suing an eBay seller for $56 million

 In Infringement, Intellectual Property, Trademark, Trademark law

Have you ever bought or sold something using a consumer-to-consumer website such as eBay? In today’s digital era it is very common, not to mention easy, and the range of options is endless. No matter if you want to buy a second-hand sofa or sell that perfume you got for Christmas but don’t like the scent of, you can do it online.

Ryan Ladijinsky is a private individual who has been selling Chanel cosmetics and fragrances through his various eBay stores. When it came to Chanel’s attention, the French high fashion house was not amused and filed a $56 million lawsuit against Ladijinsky. The interesting point with this case is that it is not about counterfeits, but about Ladijinsky not being an authorized seller. According to the lawsuit, the goods that he was selling were used, never intended for sale and lacked packaging and/or product information.

By selling products without original packaging, Chanel argues that buyers cannot determine “whether the product they receive has been opened, diluted, or otherwise tampered with after leaving the factory” and that they won’t receive essential information such as list of ingredients.

Chanel points out that its packaging is essential to the brands reputation and to the buyer’s experience of its products. It claims that by selling goods that are materially different from the way genuine Chanel products are sold, Ladijinsky has wilfully infringed on 27 of its trademarks.

Let’s picture a scenario where you purchase a used product from someone on eBay. The description clearly states the condition of the product, that it has been used and is being sold without the original packaging. When you receive the product, would you be happy that you made a bargain, or would you be disappointed over the fact that it has been used and that the shopping experience was not the same as if you would have purchased it from the brand’s own shop?

Building a strong brand is not only about marketing but also about protecting it, and threats can come from different directions. Let Otmore help you protect your brand, so that you can focus on growing your company. Contact us today to get more information about what we can do for you.

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