Fake Clothing gets slapped!A federal jury on Friday handed a $32.4 million victory to LVMH Moët Hennessy Louis Vuitton when it found that two service providers that hosted Web sites selling fake goods shared responsibility…

The case, involving an internet service provider and web hosting company called Akanoc Solutions, breaks “significant new ground” by finding a technology company responsible for the activities of websites hosted in its data centres, said Eric Goldman, associate professor of law at Santa Clara University.

Nathalie Moullé-Berteaux, intellectual property director of Louis Vuitton Malletier, the leather luggage subsidiary involved in the case, also heralded the jury verdict as “a particularly important one”. The decision had extended the theory of “contributory liability” to the internet, she said, making it clear that people who know, or should have known, that a service is illegal have a responsibility not to support it.