July 13, 2011 by staff
Trademark Infringement, EBay online auction site can be held liable for violation of trademark if it is aware of the violation of data, the highest court of the European Union said Tuesday, the New York Times reported.
Cosmetics manufacturer L’Oréal has argued that eBay was liable for trademark infringement due to their active participation in pre-sales, sales and after-sale processing of counterfeit goods in its European website.
The dispute between L’Oréal and stems of eBay trade mark protected by eBay purchased for the words search engine users to your site via sponsored links. According to the Times, L’Oréal, said the words with protected marks helped lead people fastest counterfeit goods, but eBay and the British government said it was only meant to be just an ad.
According to the Times, the Court said that eBay would be held accountable, however, if in fact “play an active role” that “give you the knowledge or control over the details of the offers for sale.”
In 2008, L’Oréal made similar claims, but a Belgian court dismissed the case.
“The sentence  provides some clarity on certain issues, and ensures that all brands can be traded online in Europe,” said Stefan Krawczyk, European director of government relation’s eBay, the Times. “A lot of cases that still need to be evaluated by national courts. We have moved in – we comply anyway most of these conditions now.”
Meanwhile, the Court ruled last year in a dispute between Google and LVMH Moet Hennessy Louis Vuitton, the Internet servers may qualify for exemption under the EU e-commerce law only if they play a neutral role in treatment data of potential offenders.
Balmayer Laurence, a spokesman for L’Oreal in Paris, takes into consideration the decision before commenting on the Times.
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