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British Appeals Court’s CounterfeitRuling Forces ISPs to ActThe onus remains on Internet service providers to block rogue e­commerce sites.

BUSINESS NEWS / LEGAL

By Samantha Conti on August 15, 2016­ ¬ Ŭ Õ }

LONDON – Britain is tightening the noose around counterfeiters incyberspace — and demanding that Internet service providers play theirpart.

Britain’s Court of Appeal has upheld a 2014 decision forcing thecountry’s Internet service providers to block web sites sellingcounterfeit goods.

Several big providers, including BT, EE and Virgin Media, lost theirappeal earlier this summer to overturn the High Court’s 2014 ruling.

The ruling was the first of its kind by a senior court regardingcounterfeit blocking in Europe. Advocates say it is a clear win for brandowners and designers who are increasingly battling onlinecounterfeiting.

The original ruling was a particular triumph for CompagnieFinancière Richemont, which had originally brought the case to court.

The High Court ruled that five major

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The High Court ruled that five major

providers block access to the rogue

web sites, which were selling fake

Cartier, Montblanc and IWC

Scha�ausen products.

The landmark ruling created a

framework for Richemont and other

luxury groups and designers to

apply for court orders to block

access to the sites, rather than

having to take action against the

web sites themselves — an arduous

task since there can be hundreds of

them, meaning a company must

tackle each one.

Paula Levitan, a partner at the

international law firm Bryan Cave

LLP, said that the Court of Appeal’s

decision was significant because it

crystallizes the responsibilities of

the Internet service providers.

She pointed out that while the

providers do not have a monitoring

duty, they must act if they are made

aware of the counterfeit sites.

“When they are made aware of a

counterfeit site, they have an

obligation to block it, and they can

be injuncted if they do not,” she said

in an interview with WWD.

Levitan said the Internet service

providers had argued that rogue

sites were not their responsibility.

“The ruling has made clear that if

the ISPs are made aware, they do have to take down these sites,” she

said.

“They don’t have an obligation to monitor — that is the burden of the

brand owners,” said Levitan, adding that intellectual property is

important to companies large and small, and that more and more

designers and brands are aware of their rights today and more active in

seeking legal recourse to protect them.

The original court action in 2014 came in response to a growing number

of sophisticated sites selling fake goods — often with U.K. addresses —

that had regularly duped customers into believing they were legitimate.

In lieu of legal action, Richemont had in the past worked in partnership

with other firms such as eBay to remove fake goods for sale online.

Frederick Mostert, who retired as chief counsel at Richemont shortly

after the original decision was handed down, spearheaded the original

case.

A ring from the Cactus de Cartier collection.

IVincent De La Faille / Cartier

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8/23/2016 British Appeals Court’s Counterfeit Ruling Forces ISPs to Act – WWD

He was formerly president of the International Trademark Association.

Last year, Mostert was inducted into the Intellectual Property Hall of

Fame.