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RSS feedsOnline auction giant eBay has won a suit in the US over the sale of counterfeit goods.
A US district judge in New York ruled that the company cannot be held liable for the sale of counterfeit goods by its users.
Jewellery firm Tiffany & Co had accused eBay of failing to stop users selling forged items on the site.
EBay has a counterfeit reporting and enforcement system in place, but retailers have said that the system does not go far enough in preventing the sale of counterfeit merchandise.
Judge Richard Sullivan concluded that eBay adequately addressed the specific claims of counterfeiting, and should not be required to take additional steps to stop the counterfeit sales.
"The ruling confirms that eBay acted reasonably and has adequate procedures in place to effectively address counterfeiting," the auction firm said in a statement.
"While today's decision is a victory for consumer choice, it is a shame that so much effort has been wasted when Tiffany could have worked with eBay to fight counterfeits more effectively."
Chris Glancy, a lawyer who specialises in trademark and intellectual property cases at New York law firm White & Case, told vnunet.com that the decision could have a profound impact for other online merchants in the US.
"This is a significant decision for the e-commerce industry that puts the onus on rights owners to protect their brands rather than online retailers," he said.
The ruling is also a welcome victory for eBay as the company works to fight off a string of similar lawsuits over its ability to police counterfeit item sales.
Last month, the company was on the losing end of a pair of suits in France filed by luxury goods sellers Hermes and LVMH.
See also:
Legal experts warn of dramatic rise in 'e-fencing' 04 Jul 2008
All Ecommerce Tags: Ebay, Counterfeit, Ecommerce
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