Tiffany (NJ) Inc. v. eBay Inc.

Tiffany sued eBay for allowing the sale of counterfeit goods on its platform. Court ruled eBay not liable for trademark infringement, but liable for knowledge of infringing listings.

Tiffany (NJ) Inc. v. eBay Inc. was a landmark lawsuit that took place in the United States District Court for the Southern District of New York. The case centered around the issue of online trademark infringement and the liability of online marketplaces for facilitating the sale of counterfeit goods.

Tiffany & Co., the plaintiff in the case, is a well-known jewelry company that has been in business for over 180 years. eBay, the defendant, is one of the largest online marketplaces in the world, with millions of sellers and buyers using the platform to conduct transactions.

The crux of the lawsuit was whether eBay could be held liable for trademark infringement by third-party sellers who used the platform to sell counterfeit Tiffany jewelry. Tiffany alleged that eBay had facilitated the sale of counterfeit goods and had not done enough to prevent such sales from occurring.

In 2008, the court ruled in favor of eBay, stating that the company could not be held liable for trademark infringement by its users. The court found that eBay had taken sufficient measures to prevent the sale of counterfeit goods, including implementing a VeRO (Verified Rights Owner) program that allowed trademark owners to report infringing listings and have them removed. The court also found that eBay had no knowledge of specific infringing items and that it had acted promptly to remove infringing listings once it became aware of them.

However, the court also held that eBay could be held liable for contributory trademark infringement if it had knowledge of specific infringing listings and failed to remove them. This meant that trademark owners could still pursue legal action against eBay if they could prove that the company had knowingly allowed infringing listings to remain on the platform.

The case had significant implications for online marketplaces and trademark owners. It clarified the legal framework for determining liability for online trademark infringement and established the importance of proactive measures to prevent the sale of counterfeit goods. It also underscored the need for trademark owners to be vigilant in monitoring online marketplaces for infringing listings and to report such listings promptly.

In conclusion, Tiffany (NJ) Inc. v. eBay Inc. was a critical case in the development of online trademark law. It established important principles for determining the liability of online marketplaces for facilitating the sale of counterfeit goods and highlighted the importance of proactive measures to prevent trademark infringement. The case continues to be cited as a significant precedent in trademark litigation involving online marketplaces.