Legal Question in Intellectual Property in California

Suspended by leading online auction company

I have a small business which runs through the leading auction company. I listed famous authentic designer handbags, but they shut me down by no reason whatsoever. My account has suspended by leading online auction company. My account suspended once in the past due to selling replica, I did not know I was dealing with replica, after that I went to Italy to purchase all authentic designer handbags from authorized shops. I sent some messages to Vero members to verify, but I got no respond. I know that all designer brands are not restricted by U.S.Customs law(Parallel Import, Grey market).I lost about $15000 profit due to their unreasonable action. I got out of the military 6 months ago and start my own business. I can not believe this happened to me.

All my designer handbags were 100% authentic, so I believe that they can not shut down my listings. I am able to prove all my designer handbags are genuine. It is unfair to me. I alreday asked some lawyers to help me out, but they said that it is their leading online company system. They try not to take my case because they can not fight against leading online company which is monoploy in online trading.

I need someone to help me out to find out for solutions.

Thank you for your time


Asked on 3/07/07, 2:18 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Suspended by leading online auction company

I read your posting twice, but didn't see any question. If your question is whether the on-line auction can do this, the answer is yes. It is a private service and it can make its own rules, even discriminatory rules.

However, I don't think the rule is necessarily discriminatory. Very likely, the on-line auction service is cooperating with the handbag manufacturer in a perfectly legal and proper protection of its right to control the down-stream marketing of its products through wholesale and retail channels of its choosing.

Many people don't know about or understand this right. They think, I bought it (wholesale), I own it, therefore I have the right to sell it (retail). Nope, it doesn't work that way. Sure, if you buy one LVMH handbag and then re-sell it, that's legal, because you are reselling something you bought as an ultimate consumer and are now disposing of in a post-consumer sale. The laws of all advanced trading nations recognize that purchases and sales that amount to retailing are different than consumer transactions and that manufacturers of trademarked goods have the right to control who retails their products, and who may not. Your auction activity was halted because you were trading in name-brand goods outside of channels authorized by the trademark owner.

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Answered on 3/07/07, 4:23 pm


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