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Tiffany (NJ), Inc. v. eBay, Inc. | 600 F.3d 93 (2010)

The internet is full of online marketplaces, where suppliers, retailers, and individuals can buy and sell all manner of goods and services. But these online marketplaces invariably attract unscrupulous individuals who sell knockoffs just to make a quick buck. Are these online marketplaces liable for these sellers’ trademark infringements? The court considered that question in Tiffany versus eBay.

eBay, an online marketplace, has procedures in place to prevent fraudulent sales of fake or counterfeit goods. Parties claiming that counterfeit items, which violate the party’s trademark, are traded on eBay can submit a Notice of Claimed Infringement. When eBay receives a notice, it removes the offending listing and cancels the sale. eBay also suspends repeat offenders. And as other fraud-prevention measures are developed and become available, eBay implements them. But eBay can’t inspect or verify the authenticity of every item listed for sale.

Tiffany, a high-end jeweler, discovered that a significant portion of the Tiffany merchandise listed on eBay was counterfeit. When Tiffany identified specific items as being counterfeit, eBay removed the listings and provided Tiffany the sellers’ contact info. But Tiffany and eBay both knew that a significant number of the purported Tiffany items being traded on eBay were still counterfeit.

Tiffany sued eBay for contributory trademark infringement. The district court ruled for eBay, and Tiffany appealed to the Second Circuit.

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