eBay wins brands battle - but for how long?

eBay will be relieved by yesterday's ruling in the long-running legal action brought against it by Tiffany in the US. Tiffany sued eBay in 2004, claiming trade mark infringement arising out of eBay's alleged failure to prevent the sale of fake jewellery on its online auction site. The ruling comes after a string of decisions against eBay in France. For more background, read the previous alert, "Brand Owners Score Important Point in eBay Battle".

Judge Sullivan of the Federal Court of the Southern District of New York decided that, as the law stands in the US, eBay is not required to actively monitor and remove listings. He added that "Tiffany must bear the ultimate burden of protecting its trademark".

The judge, however, was "not unsympathetic" to Tiffany's plight and suggested that the law may need to be reviewed in the interests of protecting brand owners rights given the rise of e-commerce.

Kate Swaine, director in the Brands team, says, "eBay will be delighted to be able to claim victory in this battle, but it still faces considerable challenges in meeting the widespread concerns of brand owners. The comments from the Judge also echo an underlying trend which seems to be moving in the brand owner's favour".

It is thought that Tiffany will almost certainly appeal the decision.