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A French court held eBay liable for $61 million for direct or contributory trademark infringement when individual sellers post auction listings on the site to sell counterfeit products. However, eBay executives found out in mid-July that they prevailed in a much-anticipated case brought by Tiffany & Co before the US District Court in the Southern District of New York on the same issue. That court held that eBay is not liable for trademark infringement. Although eBay knew about the substantial amounts of counterfeit products in its site, it did not know or have reason to know which specific listings or sellers were responsible for those counterfeits until Tiffany alerted them of the problem. After dismissing eBay's generalized knowledge as insufficient, the judge then addressed Tiffany's claims that eBay was "willfully blind" to the infringement and should have taken additional steps to further investigate and understand the counterfeiting on its Web site.
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"No Silver Lining in Tiffany's Infringement Case"Please download to view full document