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eBay Wins Trademark Suit VS. Tiffany
A federal appeals court upheld a lower court's decision ruling in favor of eBay, finding that the company is not responsible for trademark violations if sellers use its online marketplace to sell fake Tiffany and Co. jewelry and other merchandise as the real thing.
Tiffany first sued eBay in 2004, alleging that eBay engaged in trademark infringement, trademark dilution and false advertising by allowing "Tiffany" pieces sold on eBay in 2004 and 2005, that were eventually found to be counterfeits. Between 73 percent and 75 percent of the items that sellers listed for sale as genuine Tiffany products were fakes.
The essential point of the Courts ruling is that eBay would not necessarily need to stop advertising goods such as Tiffany products even if it knows that some of them are counterfeit.
eBay applauded the Courts ruling and said the decision confirms that the company is meeting its responsibilities in fighting counterfeiting under trademark law. Its efforts include "buyer protection programs," set up to reimburse buyers who discovered goods that they purchased were not authentic. It has also worked with Tiffany to post warnings on the site about the authenticity of Tiffany goods.
Tiffany and Co. Chairman and Chief Executive Officer Michael Kowalski said in a statement. "Obviously Tiffany is very disappointed by today's decision,"As an e-commerce leader, eBay has a responsibility to protect consumers and promote trust in its marketplace. EBay knew that counterfeit merchandise was being sold on its site--and eBay took no effective steps to stop it. EBay deliberately misled consumers for profit, and unfortunately, the court has justified its actions. The consumer is the real loser today."
Tiffany's attorneys are performing a full review of the decision and will consider an appeal to the U.S. Supreme Court.
Stay tuned.
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