Tiffany Appeals eBay Counterfeiting Decision
Tiffany & Co.
Mark L. Aaron, 212-230-5301
Arnold & Porter LLP
James B. Swire, 212-715-1013
Tiffany & Co. (NYSE: TIF) today announced it has filed an appeal to the United States Court of Appeals for the Second Circuit from the decision of the District Court which held that eBay, Inc. is not responsible to police its auction site to seek out and remove counterfeit goods before they can be sold to unsuspecting consumers.
“Unfortunately, the trial court incorrectly held that trademark holders and not eBay are responsible for policing the eBay site. The effect of this is that eBay can continue to profit at the expense of consumers and trademark holders,” said Patrick Dorsey, general counsel, Tiffany & Co. He continued, “In our view, this approach makes no sense as a matter of law or policy. Once eBay has reason to know that a specific brand like TIFFANY & CO. is being widely counterfeited and sold, eBay should be compelled to investigate and take action to protect its customers and stop the illegal conduct.”
Tiffany sued eBay in 2004 after notifying eBay that 73% of a random sample of supposed TIFFANY silver jewelry offered on eBay was counterfeit. The appeal will seek to overturn the trial court’s failure to apply established principles of trademark law. James B. Swire, a partner at the law firm of Arnold & Porter LLP, stated, “we do not believe the law allows auction sites like eBay to continue to turn a blind eye to this problem while reaping profits from the listing and sale of counterfeit merchandise. Trademark law does not impose a duty on Tiffany to police eBay’s site: eBay designed the site and has the responsibility to police it.”
TIFFANY & CO. operates jewelry and specialty retail stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia- Pacific and Europe and engages in direct selling through Internet, catalog and business gift operations. For additional information, please visit www.tiffany.com or call our shareholder information line at 800-TIF-0110.
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