EBay was found today to not be responsible for allowing the sale of counterfeit items. Tiffany and Company initially filed the lawsuit in 2004 after a study they conducted determined a high rate of fakes being sold under the Tiffany brand.
The ruling issued by Judge Richard Sullivan of the Federal District Court in Manhattan is a major victory for the online giant, as they do not have to actively weed out suspect listings from the site. Intellectual property holders instead are tasked with the chore of policing the site and alerting eBay of possible infringements. Accordingly, eBay would then faithfully take down the offending listings.
Not all is well though as Tiffany can still appeal the decision. Additionally, eBay has lost recent court battles with the Louis Vuitton handbag makers in French courts, while Rolex convinced a German appeals court that eBay must take preventive measures to stop the sale of counterfeit watches.