Appeals Court Ruling Favors eBay in Tiffany Case
A federal appeals court here handed eBay Inc. (EBAY) a victory Thursday, upholding the dismissal of trademark-infringement claims by jeweler Tiffany & Co. (TIF) over the sale of counterfeit merchandise on the online auctioneer’s Web site.
In an opinion Thursday, the U.S. Second Circuit Court of Appeals affirmed a lower court’s decision that eBay can’t be held libel for trademark infringement for the sale of counterfeit items if it takes steps to remove infringing listings and isn’t willfully blind to such sales.
“…We are disposed to think, and the record suggests, that private market forces give eBay and those operating similar businesses a strong incentive to minimize the counterfeit goods sold on their Web sites,” wrote U.S. Circuit Judge Robert D. Sack.
“EBay received many complaints from users claiming to have been duped into buying counterfeit Tiffany products sold on eBay. The risk of alienating these users gives eBay a reason to identify and remove counterfeit listings. Indeed, it has spent millions of dollars in that effort,” Judge Sack added.
