1 June 2010Trademarks

eBay not liable for fakes, says US Court of Appeals

Online auction company eBay does not infringe Tiffany’s trademarks when it hosts auctions of counterfeit goods, the US Court of Appeals for the Second Circuit ruled in April.

The decision upholds an earlier New York District Court ruling. The ways in which eBay advertises its marketplace do require further examination by the lower court, as it may have broken false advertising laws when it advertised Tiffany products.

Judge Robert Sack identified eBay as a “marketplace” and those that actually sell the counterfeit Tiffany goods as the “fraudulent vendors” responsible for the trademark infringement.

eBay is responsible for the ways in which it advertises infringing goods, the judge found: “eBay did affirmatively advertise the goods sold through its site as Tiffany merchandise. The law requires [the appeals court] to hold eBay accountable for the words that it chose insofar as they misled or confused consumers.”

Michael Jacobson, general counsel at eBay, said: “The ruling validates eBay’s leading efforts to fight counterfeiting and its commitment to providing consumers with choice and value in a safe and trusted marketplace. We remain confident that the one remaining issue in the case will be decided favourably on remand.”

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