eBay's Liability for Counterfeit Goods Sold on its Website Decided

     "eBay tumbled Tiffany's carefully stacked legal arguments," writes law professor and Counterfeit Chic blogger Susan Scafidi.  On Monday, the U.S. District Court for the Southern District of New York held that eBay is not liable to Tiffany & Co. for the sale of counterfeit goods through its auction website. The court ruled that Tiffany, and similar companies, are ultimately responsible for policing their trademarks online, rather than auction-based companies like eBay. "The court's ruling is in line with well established legal precedent which holds that the obligation to enforce trademarks rests with the trademark holder," wrote eBay in a published statement on its website Monday. 

     You win one, you lose one. In stark contrast to the findings of the New York court, just a few weeks ago the Tribunal de Commerce court in Paris ordered Ebay to pay over $60 million dollars to Louis Vuitton and Christian Dior for allowing the sale of counterfeit merchandise through the company's auction website. The Paris court described eBay's anti-counterfeit measures as "empty."  The court concluded that eBay had committed "serious errors" in permitting the sale of counterfeit goods, which, the court found, violated Louis Vuitton and Christian Dior's copyrights and trademarks. eBay is apparently appealing the ruling. In a published statement on its website, eBay characterized Louis Vuitton's and Christian Dior's lawsuit as an "overreaching...attempt to impose, in France, a business model that restricts consumer choice through an anti-competitive business practice."

 

Maryland IP Litigation Cases for the Week of September 17, 2007

     The U.S. District Court for the District of Maryland was chosen as the forum for litigating the following cases, as published by Justia:

According to court papers, Plaintiff Moulin Rouge, S.A., is a Belgian corporation having its principal place of business in Paris, France. It owns the famous French trademark MOULIN ROUGE, which, in English, means "red windmill."  The mark has allegedly been in use in France continuously since 1889 when the famous Parisian cabaret first opened (first use in commerce in the U.S. since 1981). Moulin Rouge reportedly owns several U.S. trademark registrations covering live music stage shows and theater productions.  Defendants are Gaithersburg, MD-based Moulin Rouge Caterers and its owner Mohammad Taghi Yahyavi. Moulin Rouge, S.A., which is represented by Robert Bowie, Jr. of BOWIE & JENSEN LLC, is alleging trademark dilution, infringement, and unfair competition.

In court papers, Plaintiff Hanover, MD-based Allegis Group, Inc., which provide human capital services, alleges it has used the mark "PEOPLE. SERVICE. PERFORMANCE" in commerce before Pittsburgh, PA-based Bizet Human Asset Management began using  its federal trademark "PEOPLE.  PROCESS.  PERFORMANCE."  When Bizet allegedly failed to cease using its trademark on its website, despite canceling its registration, Allegis sued for infringement under 15 U.S.C. § 1051.  Allegis Group is represented by Sherry Flax of Saul Ewing LLP.