eBay Loses Luxury Counterfeit Suit

SAN FRANCISCO -- A French court has ordered eBay(EBAY - Cramer's Take - Stockpickr) to pay $63.2 million to compensate designers for allowing the sale of knock-offs on eBay's site.

The Tribunal de Commerce awarded Louis Vuitton 19.3 million euros, or $30.5 million in damages. It also ordered eBay to stop selling perfume by Christian Dior, Kenzo, Givenchy and Guerlain on its site or face a fine of 50,000 euros, or $79,000, a day.

eBay said Monday that it will appeal the decision.

"It is clear that eBay has become a focal point for certain brand owners' desire to exact ever greater control over e-commerce," the company said in a statement. "We view these decisions as a step backwards for the consumers and businesses whom we empower everyday."

The company said it invests $20 million each year to fight counterfeits on its site, as well as partnering with over 18,000 brand owners to identify fakes.

Earlier this month, eBay was fined 20,000 euros, or about $32,000, in damages to French luxury retailer Hermes. Tiffany(TIF - Cramer's Take - Stockpickr) also has filed a similar suit against the company.

Shares of eBay were recently down 5 cents to $27.56.