Louboutin sought an injunction against Amazon in 2019 in Belgium and Luxembourg, saying that the eCommerce giant regularly displays ads for its iconic red-soled shoes without its permission.
The two courts, in response, sought guidance from the Luxembourg-based Court of Justice of the European Union (CJEU), Reuters reported.
After assessing the case, CJEU’s Advocate General Maciej Szpunar took Amazon’s side — marking a significant setback for Louboutin.
The company “cannot be held directly liable for infringements of the rights of trademark owners taking place on its platform as a result of commercial offerings by third parties,” he said.
“It is always specified, in the advertisements, whether the goods are sold by third-party sellers or sold directly by Amazon,” he added.
The decision is likely to go in Amazon’s favor, as the CJEU typically follows the majority of such non-binding opinions.
In recent months, Amazon has been teaming up with various brands to crack down on counterfeiters. For example, a joint partnership between Amazon and Salvatore Ferragamo led to the seizure of counterfeit Salvatore Ferragamo products in China’s Zhejiang province in April.
The sale of counterfeit products has become a significant headache for Amazon and other eCommerce platforms in recent years. According to the Organization for Economic Cooperation and Development, the global trade of counterfeit products was valued at $464 billion in 2019.
Moreover, the sale of counterfeit products increased even further in 2020 and 2021 as more consumers began shopping online.