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counterfeits

Buyer Beware: Fakes Flood Art Market

by Tom Johansmeyer (RSS feed) —

Filed under: Art

Art crime is running rampant around the world. More of the modern Russian art on the market is fake, according to an ArtInfo report, and authenticity is a problem in Vietnam, as well. There are lawsuits here in the United States, as well. So, ArtInfo asks the fair question: why are the wealthy, usually financially savvy so vulnerable when it comes to art?

Excitement is certainly part of the problem. The high prices, limited supply and egos involved create an emotionally charged environment. As hedge fund spouse Danielle Ganek observes in her (rather painful) novel, Lulu Meets God and Doubts Him, "Art is the new cocaine." Yep, and that leads to some hasty decisions.

Experience usually makes a difference in protecting collectors from fakes. New collectors rush into the bidding process, not always understanding the quality or history of what they're buying, though there's also plenty of room for seasoned buyers to make mistakes. For the newcomers, the risks include wanting to gain access to what is seen as an exclusive club, social pressures to abide by this subculture's conventions and an unwillingness to ask questions ... mostly because of those social pressures.

Yet, for all the regrets that top collectors have related about impulse buying, there are others who lament not having been faster on the paddle.


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Tags: art, art collecters, art collecting, art collection, art collector, art market, ArtCollecters, ArtCollecting, ArtCollection, ArtCollector, ArtMarket, artwork, counterfeit, counterfeit goods, CounterfeitGoods, counterfeiting, counterfeits, russian art, RussianArt

EBay Loses Big French Lawsuit

by Deidre Woollard (RSS feed) —


Big news in the lawsuit between Moet Hennessy Louis Vuitton (LVMH) and eBay. Today in Paris, a French court ruled that eBay was responsible for counterfeit items sold on the site and for selling genuine products outside of authorized channels. The court ordered eBay to pay around 40 million euros, which works out to approximately. $63.2 million. Louis Vuitton was awarded 19.3 million euros, Christian Dior Couture will get 17.4 million euros and Parfums Christian Dior, Parfums Kenzo, Guerlain and Parfums Givenchy is to receive around 3 million euros. The auction website has also been ordered to stop selling fragrances and cosmetics from those brands immediately, or face more fines.

EBay has already said they will appeal the ruling. The case is just one of several against eBay. The company recently lost a battle with Hermes over counterfeit bags. EBay maintains that they remove counterfeit items from the site when they are made aware of them but the brands believe eBay doesn't do a good enough job in policing sellers. EBay has asserted that they are a host in the selling process and therefore not responsible but a statement from LVMH counters that saying that eBay is not a host but is instead a broker for these goods and therefore responsible not just for counterfeits but for the all the branded goods that are sold through eBay. If eBay decides to crack down on sellers this could have a tremendous impact on the way the site, and its users, do business.

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Tags: counterfeits, ebay, louis vuitton, lvmh

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