Sam Gustin understands why eBay is so chapped over a French court's ruling that the it must pay $61 million to LVMH, the parent company of Louis Vuitton, for allowing the sale of fake luxury goods.

LVMH had charged that eBay's French division hadn't moved aggressively enough to prevent knockoffs of several of its brands, including Louis Vuitton, Dior, Guerlain, Givenchy, and Kenzo.

Pierre Godet, an adviser to LVMH Chairman and C.E.O. Bernard Arnault, called the decision "an answer to a particularly serious question, on whether the internet is a free-for-all for the most hateful, parasitic practices," according to the Associated Press.

In a portion of the ruling sure to be particularly alarming to eBay, the court ruled that the auctioneer was guilty of the "illicit sale" of LVMH perfumes, which the court ruled can only be sold through LVMH's own "selective distribution networks."

Needless to say, that logic, taken to its conclusion, represents a potentially devastating threat to eBay's business of providing a secondary market for products consumers buy from manufacturers such as LVMH.

Ebay immediately appealed the decision and released a blistering press release ...