August 01, 2011
In a landmark case decided this week by the European Court of Justice (ECJ) it was confirmed that online sales sites cannot claim exemption from liability to trademark infringement on the basis that they are only providing a service to facilitate the sale of goods and that it is their users who are breaching the law.
The case itself was the result of a legal challenge in the High Court by cosmetics giant L’Oreal and Ebay. The court asked the ECJ for clarification of the application of trademark laws to online websites under EU law. The court concluded “whilst making clear that it is for the national courts to carry out the assessment concerned (about liability), the court considers that the operator plays an active role of such a kind as to give it knowledge of, or control over, the data relating to the offers for sale, when it provides assistance which entails, in particular, optimising the presentation of the online offers for sale or promoting those offers.”
Stefan Krawczyk, senior director at eBay Europe, said: "The judgement provides some clarity on certain issues, and ensures that all brands can be traded online in Europe. As a marketplace, eBay provides a level playing field for all online sellers and will continue building constructive partnerships to expand the range of brands being sold on eBay."
The case has been ongoing since 2007 when L’Oreal took claims against Ebay in the UK, Belgium, Spain and France. The case now returns to the High Court for a final hearing and judgement.
