Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Amazon must check for trade mark violations: EU court adviser

Published 11/28/2019, 10:32 AM
Updated 11/28/2019, 10:32 AM
© Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves

By Foo Yun Chee

BRUSSELS (Reuters) - U.S. online retail giant Amazon (NASDAQ:AMZN) is not liable for unwittingly stocking trade mark infringing goods for third-party sellers, but should be diligent in checking whether products are legal, an adviser to Europe's top court said on Thursday.

The adviser was giving his opinion on a case that pits Amazon against U.S. cosmetics company Coty.

The dispute is one of the many battles between luxury goods companies seeking to preserve their exclusivity and branding and online platforms such as Amazon and eBay (NASDAQ:EBAY) fighting against online sales curbs.

It also raises the question of the scope of online platforms' responsibility for products sold, or content transmitted, on their sites.

The opinion from Manuel Campos Sanchez-Bordona, advocate general at the Court of Justice of the European Union (CJEU), came in a case involving Coty's German subsidiary, which took Amazon to a German court for stocking Coty's Davidoff perfume for third party sellers.

Coty said such practices violate its trade mark rights and that Amazon should be liable for stocking trade mark infringing goods. The German court subsequently sought guidance from the CJEU.

Companies which are not aware of trade mark infringements cannot be held responsible for storing such products for third party sellers, Campos Sanchez-Bordona said.

However, if they are actively involved in distributing the goods and if they operate a scheme like Amazon's, then they should show diligence in checking the legality of goods sold on their platforms, he said.

Under a scheme called "Fulfilled by Amazon", the U.S. online retail giant stores and delivers goods for third-party sellers, one of the key features of its business model.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Companies cannot simply absolve themselves of responsibility and should be aware that without this control, they can serve as a channel for the sale of illegal, counterfeit, stolen or unethical products, Campos Sanchez-Bordona said.

Amazon said it took steps to combat illegal products on its platform.

"Amazon continues to invest heavily in fighting bad actors on our store and is committed to driving counterfeits to zero. Courts have ruled in our favor in the first two instances of this proceeding, and we are now awaiting preliminary legal clarification from the CJEU," the company said.

The Luxembourg-based court, which follows such non-binding recommendations in the majority of cases, would normally give a ruling in the next two to four months.

Coty did not immediately respond to a request for comment.

The case is C-567/18 Coty Germany.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.