The Lawsuit between Tiffany and eBay

In a long-awaited decision in a four-year-old trademark lawsuit against eBay brought by the jeweler Tiffany & Company, Judge Richard J. Sullivan of the Federal District Court in Manhattan ruled that the online retailer does not have a legal responsibility to prevent its users from selling counterfeit items on its online marketplace. James B. Swire, counsel for Tiffany and a partner at the law firm of Arnold & Porter, said he was ¡°shocked and disappointed¡± in the ruling. Tiffany was likely to appeal the decision to the United States Court of Appeals for the Second Circuit.
The ruling is a shift in eBay¡¯s recent courtroom fortunes. A week ago, a French judge ordered eBay to pay 40 million euros ($63.2 million) to the French luxury goods maker LVMH Moët Hennessy Louis Vuitton over counterfeiting charges. In April, a German appeals court ruled that eBay must take preventive measures against the sale of counterfeit Rolex watches.
If those judgments are upheld in appellate court, eBay could have a potential problem on its hands. Though it operates a single global marketplace ¡ª buyers in Europe see the same items that buyers in the United States do ¡ª eBay would be legally required to do more abroad to fight counterfeiting than it is required to do at home. American shoppers on eBay will see no change in the company¡¯s listings, but how the various rulings will affect the listings in Europe remains to be seen.

TIFFANY & CO. Paloma's X earrings

TIFFANY & CO. Elsa Peretti

TIFFANY & CO. Tiffany 1837 ring

Thursday, September 17, 2009