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District Judge Richard J. Sullivan in New York ruled that eBayEBAY ) did not violate TiffanyTIF "Today's 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," eBay said in press release.
The landmark battle has raged since Tiffany sued the Internet fleamarket in 2004, citing that most of the socalled Tiffany products on the site were fakes. Yet, Monday's decision justifies eBay efforts to police its site, but not ultimately be held responsible for the morals of its sellers. Trademark law in the age of the Internet has blurred lines. Cases like this one help establish where the line should be drawn for site providers being responsible for the content of its users.
"While today's decision is a victory for consumer choice, it is a shame that so much effort has been wasted when Tiffany could have worked with eBay to more effectively fight counterfeits. EBay will continue to lead the industry with innovative solutions to stop the sale of counterfeits," the eBay statement added.
Despite the ruling, shares of eBay fell 1.9%, or 52 cents, to $27.49. While shares of Tiffany rose 0.8%, or 29 cents, to $37.32.
EBay immediately acts to remove any listings that it suspects violates the trademarks of other companies, but argued in court that it is ultimately the responsibility of the rights holder to work with the auction giant to keep fake selling at bay.
In another recent ruling, a French court decided in favor of LVMH Moet Hennessy Louis Vuitton SA when it sued eBay for the proliferation of counterfeit Louis Vuitton bags on the site. The court ordered eBay to pay $62.9 million in damages to the fashion house. (See "EBay Branded By French Ruling")

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