In a potentially precedent-setting trial, Tiffany & Co. has sued eBay for contributory trademark infringement, claiming the online auction company allowed the sale of counterfeit Tiffany jewelry on its site. The case is likely to turn on whether, as Tiffany charges, “eBay turns a blind eye to fraud,” or whether eBay’s responsible moves to prevent and aid in the prosecution of such actions immunize it from this complaint.

IP maven Ron Coleman cheers Tiffany on.  However, Law.com provides great attention to brands such as Calloway Golf, which says it gets “excellent cooperation from eBay” in protecting its brands using eBay’s Verified Rights Owner (VeRO) Program. Another measured endorsement came on NPR from jewelry maker Judith Ripka, who described eBay as pretty responsive.

This case is part of a larger trend of brand holders going after online markets for contributing to the competing actions of a third party. And though they both might deny it, there’s greater direct competition between the two than you might expect.

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