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TIFFANY'S TARGETING EBAY FOR KNOCKOFFS
TIFFANY'S TARGETING EBAY FOR KNOCKOFFS
By JANET WHITMAN with Post Wires
MEG WHITMAN
eBay boss.November 14, 2007 -- A trial over a trademark dispute with Tiffany & Co. got underway in New York yesterday that could change how eBay - and other e-commerce companies - do business.
Tiffany, which filed its lawsuit against eBay in 2004, said yesterday in court that the online auctioneer isn't doing enough to make sure the bling sold on its Web site that's billed as Tiffany is the real thing.
"Although eBay controls its site and has the ability to act, it has failed to do so," James Swire, the celebrated New York jeweler's lawyer, said in his opening argument. "EBay has simply turned a blind eye."
Tiffany brought the suit after it purchased hundreds of pieces of silver "Tiffany" jewelry from eBay and discovered that three out of four items were knockoffs.
EBay lawyer Bruce Rich said the company spends more than $10 million a year to "cleanse its site of counterfeit merchandise," and has suspended hundreds of thousands of sellers who didn't operate by its rules.
Rich blamed Tiffany itself for failing to protect its own trademarks by notifying eBay when it sees sales that might not be legit.
If Tiffany is successful with the suit, eBay could be forced to check the authenticity of tens of millions of items for sale on its site - an impossible burden, according to some industry observers.
Such a ruling could also spill over to other Internet companies selling goods on the Web.
U.S. District Judge Richard J. Sullivan in New York is hearing the case without a jury.
The trial is scheduled to go on through Nov. 21.
Shares of eBay rose 1 percent to $33.23 on the Nasdaq.