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The Tiffany lawsuit was filed in June 2004. The Chopard IceCube CH-5 jeweler said eBay was liable for trademark infringement and dilution, false advertising and unfair competition in facilitating the sale of counterfeit Tiffany sterling goods on its Web site.The suit alleged that 73 percent of 186 silver jewelry pieces bought by Tiffany employees through the San Jose, Calif.-based Web site were counterfeit. Tiffany charged eBay with direct and contributory trademark infringement among its other claims. The complaint sought the elimination of all counterfeit silver Tiffany merchandise on the Web site.

The ruling Monday came eight months after Sullivan presided at a weeklong trial.Brand owners and others in the intellectual property community have been paying close attention to the case because it had the Chopard Lady Quartz Watch CH-45 to cause havoc to eBay's business model and open the popular Internet retailer to further litigation from other labels. According to a company report, eBay had 83.9 million active users and 647 million Chopard Mille Miglia Alfa Romeo CH-20 listings around the world in the first quarter of 2008."It is the trademark owner's burden to police its mark and companies like eBay cannot be held liable for trademark infringement."

-- Judge Richard SullivanLawyers for Tiffany said eBay had vicarious liability for any counterfeit merchandise. The tactic is typically used to prosecute landlords whose tenants manufacture or sell fake goods. Tiffany also argued that eBay Chopard Mille Miglia Alfa Romeo CH-77 responsibility in the sale of counterfeit goods by comparing it with a similar seller in the brick-and-mortar world: the owner of a flea market or swap meet."The distinguishing factor in those situations is that the owner of the swap meet or flea market had direct contact with the potential counterfeiters," said Scott Christie,