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Amsterdam partner Manish Bahl wrote a feature for bi-monthly publication Leading Internet Case Law regarding the Amsterdam Court ruling in the Nike/Action Sport case in October 2017.
The District Court of Amsterdam ruled on the prohibition of internet sales via an unauthorised online platform, in the context of a selective distribution system in a case that which captured wide-ranging interest across Europe.
The case began after Sicily-based sports retailer Action Sport began selling Nike's products on Amazon. Although Action Sport had a distribution agreement with Nike, Amazon was not a Nike authorised reseller.
The article goes on to discuss how the Amsterdam Court found in favour of Nike, as Action Sport had not complied with Nike's selective distribution policy. The Amsterdam Court held that suppliers of well-known brands can restrict online sales in order to preserve the "aura of luxury" surrounding such products.
Manish discusses this case alongside similar examples of the Court of Justice of the European Union (CJEU) and against the backdrop of the recent ruling of the CJEU involving Coty Germany. Producers wishing to restrict internet sales will need to ensure that the luxury image (which needs to be protected) of their products is preserved. Anything which takes away such an “aura of luxury” arguably can have consequences on a supplier’s ability to impose restrictions.
You can view the article here.
This article comes after Manish also presented on unfair commercial practices and growing restrictions on BtoB trade at the annual AIJA T.R.A.D.E Commission conference in October 2017 in Bratislava.
Leading Internet Case Law is a bi-monthly publication which focuses on significant court cases impacting e-commerce and the internet.
The article first featured in the publication on the 19th December 2017.