• News and Events
  • Exhibitions, Events, Activities
  • Mainstream Media: Online, Newspapers
  • Auction Houses and Dealers
  • Market Watch
  • Editorials

Movie Prop Collecting with Jason DeBord's Original Prop Blog Film & TV Prop, Costume, Hollywood Memorablia Pop Culture Resource

  • Home
  • About
    • About Jason DeBord
    • About The Original Prop Blog
    • Lexicon
    • Content Guide
    • Terms of Service & Notices
  • Authentication
  • Contact
  • Press
  • Archive
  • Links

Landmark Decision in U.S. Federal Court: California Jury Finds ISPs Liable for Hosting Websites Selling Counterfeit Goods

September 3, 2009 By Jason DeBord

Louis-Vuitton-Lawsuit-ISPs-Webhost-Jury-Judgement-Scales-Justice-x380

In what is being called a landmark decision, a jury in U.S. District Court for the Northern District of California this week found that two ISPs and their owner are liable for contributing to trademark and copyright infringement for hosting sites selling counterfeit Louis Vuitton merchandise.

The jury awarded $32.4 million in damages to Louis Vuitton in a lawsuit against Akanoc Solutions Inc. and Managed Solutions Group Inc., two California-based hosting companies both owned by Steven Chen of Fremont, California.  The Plaintiff argued that the ISPs should have known sites that they were hosting were selling counterfeit LV goods, and therefore demonstrated contributory liability for trademark infringement by providing the infrastructure that enabled the sale of the fake merchandise.

In 2008, Louis Vuitton won a $63 million judgment against eBay in a French court for the sale of fake LV goods on the popular auction site (see French Court Orders eBay to Pay $61 Million for Sale of Counterfeit Goods).

With the latest case, LV argued that the ISPs waived their “safe harbor” immunity under the Digital Millennium Copyright Act (DMCA) because they knowingly hosted sites selling the counterfeit material.

Per the LV complaint, the hosting companies “were formed for and exist primarily to facilitate the promotion and advertisement of offers for counterfeit and infringing merchandise”.

Some of the sites offering fake LV merchandise included luxury2us.com, louis-vuitton-bags.org, and handbagsell.com, all of which overtly offered unauthorized and unlicensed replica products, with marketing statements such as “no one will know that they are not the original Louis Vuitton”, though they items featured the LV trademarked symbols.

Attorneys representing LV notified the two ISPS of the counterfeit sites and reportedly received no responses.

The jury found both Chen and his two ISP companies liable for aiding in the infringement, awarding $31.5 million in damages ($10,500 for each of the ISPs and Chen personally).

The Court is expected to issue a permanent injunction that bans the ISPs from hosting websites that sell counterfeit Louis Vuitton merchandise.

The following is a press release issued by Louis Vuitton:

Jury Finds Akanoc Solutions Inc., Managed Solutions Group Inc.and Steve Chen

Liable for Contributory Trademark and Copyright Infringement

NEW YORK–(Business Wire)–

Louis Vuitton Malletier, S.A. (“Louis Vuitton”) part of LVMH, the world`s

leading luxury group, today announced that it has won the lawsuit it filed in

2007 against the California based Internet hosting business of Akanoc Solutions,

Inc., Managed Solutions Group, Inc., and Steven Chen (the “Akanoc Defendants”)

in the United States District Court, Northern District of California (San Jose).

On August 28th, the jury found the Akanoc Defendants liable for contributory

trademark and copyright infringement, and awarded statutory damages in the

amount of $32,400,000.00. The court is expected shortly to issue a permanent

injunction banning the Akanoc Defendants from hosting websites that sell

counterfeit or infringing Louis Vuitton goods.

Nathalie Moullé-Berteaux, Intellectual Property Director of Louis Vuitton, said,

“We are very pleased that the jury recognized the Akanoc Defendants`

contributory liability. This decision is another important step towards reducing

the illegal activity of websites selling counterfeit merchandise and enforcing

the rule of law on the Internet. The Akanoc Defendants` specific business model

of providing unmanaged server capacity to web hosting resellers does not exempt

them from taking active steps to effectively prevent infringing activity upon

notification from an intellectual property rights owner. This case is a

particularly important one in that it involves the successful application on the

Internet of the theory of contributory liability-those who know or should have

known that the business operations, for which they provide venues are conducting

illegal activities, have an obligation to ensure those business operations are

legal.

“The size of this award should make it clear to all Internet Service Providers

(ISPs) that they cannot act, or fail to act, with impunity when a trademark

owner provides notice that websites hosted by the ISP are selling counterfeit

goods. We believe the size of the damages awarded should serve as a deterrent to

other ISPs who may consider ignoring counterfeit trade on the websites they

host. Louis Vuitton will continue its fight throughout the world-concrete and

virtual- to protect its brand and customers against counterfeiting.”

Andy Coombs, Louis Vuitton`s counsel, said, “This verdict clearly establishes a

standard for infringement complaints on the Internet based on trademark. It

represents a positive contribution to existing case law and marks the first time

statutory damages have been awarded against those found contributorily liable

for trademark infringement. The standard applied to copyright infringement

claims must also be applied to trademark infringement claims. The jury

recognized that having an appropriate use policy is not sufficient. Internet

Service Providers have an obligation to effectively enforce that policy as

well.”

About Louis Vuitton


The world leader in luxury, Louis Vuitton has been synonymous with the art of

stylish travel since 1854. Since 1987, it has been part of LVMH/Moët Hennessy

Louis Vuitton, the world`s most prestigious luxury goods group headed by Bernard

Arnault. Since 1997, with the arrival of the designer Marc Jacobs, it has

extended its expertise to women`s and men`s ready-to-wear, shoes, watches and

jewelry, sunglasses, combining traditional craftsmanship with flair and

innovation to create a complete lifestyle experience.

Past articles published by the Original Prop Blog related to other legal disputes and court proceedings can be found via the portal below:

Jason DeBord

Filed Under: eBay & PayPal, Fraud in the News, Legal Disputes, Court Rulings, Judgments, News and Events Tagged With: appeal, california, copyright, Costumes, counterfeit, damages, ebay, Film, france, infringement, infringing, internet, jury, law, lawsuit, lawyers, louis vuitton, lvmh, memorabilia, Movie, Original, Props, replica, suit, Television, US District Court, US Federal Court, Wardrobe

Visit My Sister Site Rock Subculture Journal

Recent Posts

  • Check Out My New YouTube Channel and Website: PopCultureKind
  • Crossover Appearance: “The Stuff Dreams Are Made Of” Podcast
  • Jack Warford, Star Wars Starship Model Photographer for Merchandising/Promotion in 1977 & Rare Filming and Prototype Images
  • Calendar of Live Auction Events: TV and Movie Props & Costumes, Hollywood Entertainment, Music, & Pop Culture Memorabilia
  • Dan Lanigan’s “Prop Culture” by ABC Studios & Cinema Relics Productions – Season One Streaming on Disney+ Starting May 1st
  • The 13th Annual Original Prop Blog “Year in Review” for 2019 (Personal/Professional Update)
  • Calendar of Live Auction Events: TV and Movie Props & Costumes, Hollywood Entertainment, Music, & Pop Culture Memorabilia
  • San Diego Comic-Con 2019: Marvel Entertainment Part 4 / Avengers: Endgame Costume Exhibit (Sunday)
  • San Diego Comic-Con 2019: Godzilla Movie Props / Godzilla Toho Co., LTD & Bandai America
  • San Diego Comic-Con 2019: Ripley’s Believe It Or Not!
  • San Diego Comic-Con 2019: Marvel Entertainment Part 3 / A-Force Costume Exhibit (Saturday)
  • San Diego Comic-Con 2019: Warner Bros | DC Comics | Batman
  • San Diego Comic-Con 2019: Marvel Entertainment Part 2 / Spider-Man: Far From Home Costume Exhibit (Friday)
  • San Diego Comic-Con 2019: Batman Film Used Cowls
  • San Diego Comic-Con 2019: Weta Workshop
  • San Diego Comic-Con 2019: Prop Store
  • San Diego Comic-Con 2019: Comedy Central’s Crank Yankers
  • San Diego Comic-Con 2019: Saban’s Power Rangers
  • San Diego Comic-Con 2019: Regal Robot (by Tom Spina)
  • San Diego Comic-Con 2019: Marvel Entertainment Part 1 / Captain Marvel Costume Exhibit (Wednesday/Thursday)
  • San Diego Comic-Con 2019: Star Wars Imperial Stormtrooper Costume Exhibit
  • YouTube Close-Up Look – “Empire Strikes Back” Darth Vader Costume Auction with Bonhams Update: Withdrawn
  • YouTube Close-Up Look – “Empire Strikes Back” Darth Vader Costume Up For Auction with Bonhams (Screen-Used? Production Made? Touring Costume?)
  • Calendar of Live Auction Events: TV and Movie Props & Costumes, Hollywood Entertainment, Music, & Pop Culture Memorabilia
  • YouTube Movie Prop News 04/01/2019
  • YouTube Movie Prop News 02/27/2019
  • Calendar of Live Auction Events: TV and Movie Props & Costumes, Hollywood Entertainment, Music, & Pop Culture Memorabilia
  • YouTube Auction Preview – Profiles in History “Transformers: The Auction” on February 28th
  • Tammy & Jeff Castillo Launch Icons of Pop Culture (YouTube Video News)
  • YouTube Edition – The 12th Annual Original Prop Blog “Year in Review” for 2018 – Original TV & Movie Props, Costumes and Pop Culture Memorabilia

Tags

Art auction auction house authentic authenticity bonhams catalog christies coa Collection Costume Costumes ebay entertainment event Exhibit Film Hollywood icollector Jason DeBord live auctions london Los Angeles memorabilia Movie movie prop Music online Original original prop blog pop culture premiere props profiles in history Prop Props sale screen-used screenused star wars studio superman Television tv vintage Wardrobe

Explore Past Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok