Split decision in Ebay v. Tiffany: eBay Wins on Trademark Issues, Looses on Advertising Claims

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The Second Circuit Court of Appeals today issued its ruling in the eBay v. Tiffany case. TIffany sued eBay claiming that eBay was liable for trademark infringement and false advertising because sellers sold counterfeit merchandise on eBay's site. The basic trademark argument was that eBay was contributorily liable for the infringement because it did not do enough to prevent fakes being sold on its site. The court upheld the judgment of no infringement of trademarks by eBay, but reversed on the question of whether eBay's advertising that consumers can purchase Tiffany products on the auction site was misleading. I haven't been able to read a copy of the opinion yet, but here is a nice summary.