Tiffany and Co. is still waiting for a verdict in its lawsuit
against eBay after a weeklong bench trial in which Tiffany’s lawyers
argued that eBay is a distribution network that allows counterfeit
Tiffany items to be bought and sold, according to a report in The New
York Times.
The case, heard by U.S. District Court Judge Richard Sullivan in
Manhattan, is being closely watched as one that would set legal
precedent on who is responsible for policing the Internet for
counterfeit products, a monitoring job that would undoubtedly prove
costly. The verdict could also impact the fate of eBay’s business model.
The judge asked both sides to file post-trial briefs by Dec. 7, the Times said.
Tiffany has requested injunctive relief that would require eBay to
eliminate counterfeit silver Tiffany merchandise from its auctions. For
its part, eBay has argued that it is not responsible for determining
each product’s authenticity because it does not take possession of any
of the goods sold on the site, and that it has done its best to keep
counterfeits off the site.
In his closing argument, Tiffany’s lawyer James B. Swire argued that
eBay directly advertises the sale of Tiffany jewelry on its home page,
and because the site profits from the ensuing sales, Tiffany considers
its actions to be a direct copyright infringement, reported the Times.
Meanwhile, eBay’s lawyer Bruce Rich contended in court that the Web
site fulfills its obligation in preventing the sale of counterfeit
goods, adding that policing responsibility should rest on Tiffany
because the retailer has the necessary expertise to identify the
product counterfeits, the news story said.
Last Tuesday, Judge Sullivan questioned Tiffany Chairman and Chief
Executive Officer Michael J. Kowalski about the measures Tiffany has
taken to find and prosecute the counterfeiters, reported the Times.
Kowalski reportedly testified that the task had been difficult and
often impossible since the alleged sellers of counterfeit Tiffany goods
on eBay frequently change their identities.
National Jeweler 28/11/07
