LV Is on the Fringe With Its Lawsuits

(Image is actually authentic LV bags spray painted with the word FAKE for an art exhibition).

Rather than being content with having a ubiquitous presence in the fashion world and sometimes being on the fringe of art (see above), Louis Vuitton (LV) has pushed the litigation envelope further than I have seen most fashion houses able to do.

In their latest victory over piracy, they have been awarded $32.4 million in damages against an INTERNET SERVICE PROVIDER (ISP) called Akanoc. In the first verdict of its kind, a California jury has found that an ISP can be found liable for contributory trademark and copyright infringement.

The verdict opens the door for a new kind of liability: if you host websites that sell counterfeit items and even if you try to but fail to prevent this activity; you can be held liable.

This case could serve as an example for other ISPs to pay more attention when it comes to "Takedown" notices sent by copyright holders' attorneys complaining about infringement.

Takedown notices are notices that are sent by the attorney of a copyright holder that orders the removal of infringing material on an ISP. This is based on The Online Copyright Infringement Liability Limitation Act (OCILLA), a portion of the Digital Millennium Copyright Act known as DMCA 512 or the DMCA takedown provisions, which is a 1998 United States federal law that provides a safe harbor to online service providers (OSPs, including internet service providers) that promptly take down content if someone alleges it infringes their copyrights.

When Louis Vuitton's attorneys sent these notices to Akanoc back in 2007, they failed to respond. It is because of this failure to respond that they were denied the safe harbor that is typically granted to ISPs because of the OCILLA.

It is most likely why the jury was able to grant LV this award.

LV issued this statement in response to the news:

"We are very pleased that the jury recognized the Akanoc Defendants' contributory liability," said Nathalie Moullé-Berteaux, Intellectual Property Director of Louis Vuitton. "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 size of this award should make it clear to all Internet Service Providers 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," Moullé-Berteaux said. "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."