EBay accused of being a 'rat's nest' of fakes
New York jeweller Tiffany & Co has described eBay as a "rat's nest" of counterfeit goods in a bitter outburst against the internet sale of fake watches, necklaces and bracelets.
The 170-year-old design house has accused the world's largest online auctioneer of doing little to prevent the selling of fakes on its site.
A New York judge heard arguments in the dispute between the two sides last month. In a legal brief filed while awaiting a ruling, Tiffany said that out of a sample of 136 Tiffany items advertised on eBay, 73% were fake.
"EBay had reason to know that there was pervasive and fundamental misuse of its system for the sale of counterfeit Tiffany goods," says the brief. "Indeed, it was a proverbial 'rat's nest'."
Tiffany argues that eBay is liable because it continued to offer services to customers when it knew that abuse was rife. It says that its glitzy reputation, encapsulated in the Audrey Hepburn film Breakfast at Tiffany's, has been "diluted and tarnished" by the fakes.
In its defence, eBay argues that it always removes unlawful goods brought to its attention and that Tiffany should make more effort to protect its brand. EBay says that only $14m (£6.8m) of Tiffany's $11bn sales over five years has gone towards an anti-counterfeit operation.
EBay's lawyer, Bruce Rich, said: "Tiffany's case is a barren one, both legally and factually."
Judge Richard Sullivan's ruling will be closely watched by the technology industry. EBay claims that a ruling against it will "wreak havoc" with businesses similar to its own and have an adverse impact on the development of internet commerce.
Andrew Clark in New York
The Guardian, Wednesday December 12 2007
Guardian Unlimited
© Guardian News and Media Limited 2007
New York jeweller Tiffany & Co has described eBay as a "rat's nest" of counterfeit goods in a bitter outburst against the internet sale of fake watches, necklaces and bracelets.
The 170-year-old design house has accused the world's largest online auctioneer of doing little to prevent the selling of fakes on its site.
A New York judge heard arguments in the dispute between the two sides last month. In a legal brief filed while awaiting a ruling, Tiffany said that out of a sample of 136 Tiffany items advertised on eBay, 73% were fake.
"EBay had reason to know that there was pervasive and fundamental misuse of its system for the sale of counterfeit Tiffany goods," says the brief. "Indeed, it was a proverbial 'rat's nest'."
Tiffany argues that eBay is liable because it continued to offer services to customers when it knew that abuse was rife. It says that its glitzy reputation, encapsulated in the Audrey Hepburn film Breakfast at Tiffany's, has been "diluted and tarnished" by the fakes.
In its defence, eBay argues that it always removes unlawful goods brought to its attention and that Tiffany should make more effort to protect its brand. EBay says that only $14m (£6.8m) of Tiffany's $11bn sales over five years has gone towards an anti-counterfeit operation.
EBay's lawyer, Bruce Rich, said: "Tiffany's case is a barren one, both legally and factually."
Judge Richard Sullivan's ruling will be closely watched by the technology industry. EBay claims that a ruling against it will "wreak havoc" with businesses similar to its own and have an adverse impact on the development of internet commerce.
Andrew Clark in New York
The Guardian, Wednesday December 12 2007
Guardian Unlimited
© Guardian News and Media Limited 2007
