Diane Von Furstenberg Studio Awarded Statutory Damages of $100,000 Against eBay Seller of Fake Dresses
The United States District Court for the Eastern District of Virginia in Diane Von Furstenberg Studio v. Snyder recently awarded Diane Von Furstenberg Studio the maximum statutory damage award available in cases of non-willful trademark counterfeiting. In deciding to award DVF $100,000, the court identified five factors as relevant in deciding the amount of a statutory damage award:
1. The expenses saved and profits reaped by the defendant.
2. The revenues lost by the plaintiff including damage to reputation.
3. The value of the trademark.
4. The need to deter and discourage additional counterfeiting activity by the defendant and others.
5. Whether the defendant cooperated and took responsibility for its actions.
Noting that the Internet gives counterfeit sellers a virtually limitless number of customers, the court stated that Snyder's choice of eBay as her marketplace weighed in favor of a large damage award.
Had the court found that Snyder acted willfully, it could have enhanced the statutory damage award to up to $1 million. However, because DVF withdrew its claim that the defendant acted willfully and in bad faith, DVF was not eligible for enhanced statutory damages or attorney’s fees in this case.
Snyder has filed an appeal from the damage award.