The world’s largest cosmetics company, L’Oreal SA, has taken eBay Inc. to court over concerns that the popular auction website has used its brand to sell counterfeit goods.
The highest justice body in Europe, the European Court of Justice, ruled that eBay can be held liable for trademark breaches only after it has been notified of a potential infringement. Unless such notification has been issued, the second most-visited U.S. e-commerce site will not accept liability, according to an AFP report.
The ruling was welcomed by both eBay and L’Oreal.
“A judicial injunction could be brought against the manager of an electronic marketplace in order to prevent the pursuit or repetition of the infraction,” the European Court of Justice advocate general Niilo Jaaskinen said, according to an AP report.
L’Oreal said Jaaskinen’s ideas “go in the direction of an efficient fight against the sale of fake brands on the Internet.”
“Despite the complexity of the issues and the preliminary nature of the advocate-general’s opinion, we are encouraged,” San Jose, Calif.-based eBay said in a statement. The court’s final judgment “will reinforce European consumers’ freedom to buy and sell authentic goods,” according to the statement.
The lawsuit came after L’Oreal spotted cases of counterfeit cosmetics being sold on eBay and claimed the site failed to prevent trademark breaches.
In 2007, L’Oreal took eBay to court in Belgium, Britain, France, Germany, and Spain over the same issue.
The highest justice body in Europe, the European Court of Justice, ruled that eBay can be held liable for trademark breaches only after it has been notified of a potential infringement. Unless such notification has been issued, the second most-visited U.S. e-commerce site will not accept liability, according to an AFP report.
The ruling was welcomed by both eBay and L’Oreal.
“A judicial injunction could be brought against the manager of an electronic marketplace in order to prevent the pursuit or repetition of the infraction,” the European Court of Justice advocate general Niilo Jaaskinen said, according to an AP report.
L’Oreal said Jaaskinen’s ideas “go in the direction of an efficient fight against the sale of fake brands on the Internet.”
“Despite the complexity of the issues and the preliminary nature of the advocate-general’s opinion, we are encouraged,” San Jose, Calif.-based eBay said in a statement. The court’s final judgment “will reinforce European consumers’ freedom to buy and sell authentic goods,” according to the statement.
The lawsuit came after L’Oreal spotted cases of counterfeit cosmetics being sold on eBay and claimed the site failed to prevent trademark breaches.
In 2007, L’Oreal took eBay to court in Belgium, Britain, France, Germany, and Spain over the same issue.
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