eBay not liable for counterfeit luxury products

On eBay, thousands of luxury brand products can be found at low prices. Unfortunately, in many cases these products, which are often shipped from Asia, are counterfeit. Although eBay only offers a virtual marketplace for individuals and doesn't sell products itself, the famous jewelry company Tiffany's & Co. sued eBay Inc, arguing that they should be held liable for trademark infringement.

The first trial dates from 2004, when a federal judge and later also a U.S. appeals court ruled that eBay cannot be held liable for trademark infringement, following the argumentation above. The court also acknowledged that eBay takes sufficient efforts to reduce the amount of counterfeit goods sold on their websites to a minimum.

Tiffany was not pleased with this ruling, and appealed to the Supreme Court. They said eBay has made a profit of $4.1 million from sales of counterfeit Tiffany jewelry between April 2000 en June 2004. eBay asked to reject this appeal, arguing that trademark laws for internet commerce are not to be changed by the courts, but by lawmakers in Congress. They also noticed that they already spend as much as $20 million per year on anti-fraud measures. On Monday, November 29, 2010, the Supreme Court rejected Tiffany's appeal without further comment.

Nick Z.
Source: Reuters