US court rules eBay has not engaged in trademark infringement.
Tiffany has lost its second trademark battle with eBay as a US court ruled that the auction website did not engage in trademark infringement and dilution by facilitating the sale of counterfeit Tiffany merchandise.
The jeweller has criticised the decision by the US Court of Appeals and said that the ruling allows eBay to “profit from counterfeit sales”.
While the ruling will not stop eBay from hosting sales of counterfeit Tiffany jewellery, it does leave room to establish Tiffany’s claims for false advertising.
Tiffany chairman Michael Kowalski said: “Obviously Tiffany is very disappointed. 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 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 original claim against eBay was brought to court in July 2008 but was dismissed. The jeweller filed an appeal in August 2008.