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16th July 2008
eBay wins US court case over fake jewellery
A court in the US has ruled against jewellery retailer Tiffany & Co in their case seeking damages from online auction site eBay for the sale of fake goods.
A judge in New York ruled earlier this week that eBay could not be held responsible for policing all its auctions and that it was the responsibility of retailers like Tiffany to alert the site to fake goods.
"Tiffany must ultimately bear the burden of protecting its trademark," the judge explained in a written ruling.
However, he added that he was "not unsympathetic" to the company's complaint and suggested US lawmakers might need to look at altering rules.
"Policymakers may yet decide that the law as it stands is inadequate to protect rights owners in light of the increasing scope of internet commerce and the concomitant rise in potential trademark infringement," he explained.
The online auction house welcomed the ruling. A statement from the company read: "[The] decision is a victory for consumers. The ruling confirms that eBay acted reasonably and has adequate procedures in place to effectively address counterfeiting. The ruling appropriately establishes that protecting brands and trademarks is the primary burden of rights owners."
Late last month, eBay lost a similar case in France and was ordered to pay €38.6 million (£30 million) to luxury goods manufacturer LVMH for allowing the sale of fake goods on its site.
(c) 2008 Adfero Ltd.
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