The recent federal court ruling that eBay isn’t responsible for counterfeit Tiffany goods sold on its site will eventually do eBay more harm than good. - Inspired by eBay's opposing counsel in the Tiffany case

Two days ago, in contrast to previous European rulings on the subject, the Federal District Court in Manhattan ruled that eBay does not have any legal responsibility to control the sale of counterfeit Tiffany goods sold on its site. As long as eBay removes the material upon complaint, it does not have to actually filter its marketplace for trademarked material.

The counsel for Tiffany, James B. Swire attacked the decision, stating that it undermines "the principal purpose of trademark law," which is protecting consumers and then brand owners.

If this decision is not overturned in the appellate court, eBay will face the issue of having to monitor things sold abroad far more rigorously than things that are sold in the US, although buyers in Europe see the same things in the marketplace that US buyers do. This is because European courts have ruled that eBay does indeed have a responsibility to actively prevent the sale of counterfeit goods on its site. A few months ago, a German court ruled that eBay must take measures preventing Rolex watches from being sold in its marketplace. EBay was also required to pay damages to Louis Vuitton for failing to prevent counterfeit goods from being sold on its site.