One thing I've wondered about with these cases but not had the time to research: Surely the boilerplate ebay seller agreement shifts any liability for infringment onto the seller such that the seller would be required to indemnify ebay for the damages? I would think a little tweaking of the user agreement would be enough to insulate ebay sufficiently. Granted, a lot of sellers are small-time folks who may be effectively judgment proof, but I'd think this would be one way out for ebay.

I've seen a few of these counterfeit pieces, and I was stunned at how good the copies were. The French decision is problematic, but this does seem to be a problem unique to the internet. The problem may be partly solved if E-bay refused to allow citizens of countries that don't have strong enforcement of copyright and trademark laws to participate on the site (primarily southeast asia), but Tiffany and LVMH probably went after the only entity that makes any sense to target in court (and they are, in fact, accessories to fraud). Obviously, as more and more people are getting ripped off - some sort of regulatory body will have to dictate a remedy, but in the meantime - perhaps e-bay and the partners at pay-pal could delay transfer of funds for a long enough period for the goods to be verified (and keep those funds in escrow until a dispute is resolved - releasing the monies to whoever doesn't have the product in the end). personally - I would never buy a "branded" watch from a provider outside the USA. That, at least gives the consumer the benefit of U.S. consumer protection law as a backstop to being a victim of fraud. marc ofte - ball watch usa

very good remarks ROB, you should nevertheless realize that the owner of LVMH is a close friend of President Sarkozy and that, sometimes, it is good to have the right people in the right place. Nevertheless Ebay is making billions by having unscrupulous people selling all kind of illegitimate products, and our industry is very much concerned. THe way people display names "sapphires" or "diamonds" with (sometimes) "created" written very very little compared to the actual name of the stone should also be forbidden for instance. THere is too much deception. I think that you should write a column in this great JCK magazine about all these deceptions and this should push Ebay to spend some of their money to hire gemologists with a very good knowledge in our industry and its rules (including the Blue Book and FTC rules), that would overlook the content of what is sold, because we don't need more problems that what we already have with treatments and so forth. Best regards, Olivier Galibert ogalibert@gmail.com

Ebay deserves every punishment it can get from various countries and judges around the world it was ebay that opened the floodgates to miljons of fraudster outfits by doing so ebay grew into the largest counterfit and scam artist portal in the world together with paypal the set is complete for a future disaster where all small family companies will disapear.Ebay has become blindsided thinking that every single seller in the site is a fraud or criminal changing rules as they wish and without thinking about the effects it can have on honest companies that have been in the site since 1995. I say it is karma that plays it's ruling hand over ebay and I support the Judges and companies that have balls big enough to go against ebay. The end is in sight and it might provide a new venue for some serious competition in the future. best regards Alex theringdepot@earthlink.net

This is a welcome decision. Ebay has become a the playground for many who want to make a quick buck by circumventing the selectivity of product and distribution that are the keys to success for luxury consumer products. Either Ebay monitors itself or ensures that its sellers operate within international law.

Ebay, the 47th street den of thieves souk when it comes to gems and jewelry. They literally will do nothing unless you are a trademark holder, if you try to report obvious fraud prior to an auction closing. But given the dollar value to them of the average sale, what could they reasonably be expected to do. They are between a rock and a hardplace, unlike auction houses that see the goods.

Wow, got some serious issues there guys? I know people who sell on ebay and have bought a variety of things through it, and in no way are all or even a majority of ebay sellers scammers and fraudsters. Ebay cannot police all of its auctions without assuming joint liability for everything that gets sold. In other words, someone who got ripped off (I do know people who have been) would simply need to sue ebay instead of tracking down the actual seller. All that said, as Oliver points out, there are serious problems in many of the gem and jewelry listings. As for the worst of it, I'd say it's a toss-up between how so many CZs are sold as "synthetic diamonds" and how drilled and filled diamonds are dumped on ebay with insufficient or nonexistent disclosure. We need to focus on *those* kinds of issues instead of getting bent out of shape over the way ebay has upended traditional methods of selling jewelry.

It is not only eBay that is guilty of permitting this type of consumer faud from its sellers. There are a host of auction houses like "bid4assets" and "Property Room Auctions Online" that host sellers who advertise "genuine red burma rubies" which they state in fine print down in the website, are enhanced. If any gemstone is enhanced by heat treatment, irradiation, etc, it is not "genuine". To advertise so is fraud! I think it is time to crack down on these deceptions not only on eBay and the auction sites, but the infamous TV jewelry shows. Perhaps JCK can take a lead in this effort?

Re: some of the points made up above -- I didn't bring this up in my post, but the idea of people selling through unauthorized distribution channels WAS a part of a lawsuit, and ebay lost on that point too. Here is an angry editorial about that: tinyurl.com/4raaxf. I don't think that will fly in the US, and personally, I think that if someone has a genuine Rolex watch, and wants to sell it second-hand, they should be allowed to. That is not the same issue as someone selling counterfeit goods or describing their products misleadingly.

I think it's clear that ebay does not want to assume liability for everything it sells. And yet it can't go on being a clearinghouse for counterfeits. Tiffany told me they had to hire two people to police the site. So at some point, it becomes: who pays to police these things -- them or ebay?

Personally, I have found many cool things on ebay -- we used to buy vintage copies of JCK off there -- and I believe in the concept of an open marketplace where people can sell what they want. But, as they said in grade school, a lot of times a few bad apples spoil it for the rest of us.

RE: Rob "I think it's clear that ebay does not want to assume liability for everything it sells" Rob. I think they (Ebay) winds up assuming liability when they are told emphatically by a qualified individual there is a fraud going on, and they let it happen. They supposedly let Tiffany pull thousands of auctions for trademark violations based on their say so. Could be a interesting test case bringing Ebay into a specific performance suit. Years back, I and another guy on Polygon were going head to head on an Ebay auction that turned out to be phoney. The hammer price was seven figures.

Marty, the point of the Tiffany-ebay case is that Tiffany does not want to go to the trouble of policing ebay auctions for counterfeit goods. Ebay has a mechanism for taking down auctions precisely because they become liable if nothing is done. Tiffany's argument is that ebay has to shoulder some of the effort instead of waiting for complaints. Ebay is generally good about pulling down counterfeit auctions--but you have to ask them to.

RE Homer commented: " Ebay is generally good about pulling down counterfeit auctions--but you have to ask them to." Homer.. I asked Ebay regarding this and you are correct, if you are the copyright or trademark owner. But when I try to report an obvious fraud (and tell them why it is obvious), I get lip service in they won't do anything until the auction completes, and then it is up to the buyer to complain. They make it very difficult. My contention is, that once they are notified in writing of a (potential) fraud, they assume partial responsibility if they don't take immediate measures and allow the fraud to occur.

Fakes knock offs and fraud have no place on Ebay. Tiffany items that are used do not have the same value as new items. Knock offs, fakes, and fraud are from bad people. Tiffany went after the wrong venue. Tiffany items sold through the mail, could mean that Tiffany could sue the mails for dealing in fakes? absurd. Tiffany, rather than go after the real thieves, shows is shallowness by shooting the messenger not the thieves. Makes for dramatic copy, but does little to solve the real problem. Shame on Tiffany for attacking the marketplace and not going after those who abuse their items with knock offs, it is a cheap shot, interesting press, but Tiffany is shooting blanks again... sigh when will they actually go after the crooks instead of the internet marketplace? Stupid is as stupid does.

Here is another example of violation of intellectual property rights by the scum on Ebay. A Tino Hammid photo of an EightStar blue diamond being used to sell CZ. cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=230268442871 And do you know the run around to try get it taken down? Go Tiffany...

You said it Rob Bates. There are a few bad apples in the buntch and it does worry the ones that sell ligite items on e-bay. I have bought somethings on e-bay and they are good products. One day soon I will be selling some stuff on e-bay hopefully. But you all should be careful when buying gems from another country, be very cautious. But for those contierfiters sham on you and I hope you rot in hell for ripping off good and honest people buying products from you. Hope they read this.

Caveat Emptor! Buyer Beware! While I enjoy looking at items on eBay, I would never actually buy anything off of eBay. Why? I do not buy pigs in pokes, as they say, especially when it comes to things such as jewelry. You do not know who is at the other end of the line, so to speak. Also, consider this: What is eBay's main purpose? Obviously, it is to make money, preferably as fast as possible. It is not to police the authenticity of merchandise. Buyer Beware!