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Gerardo Babatz

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By: Gerardo Babatz, Samia Gonzalez,
Nelly de La Mora, Jaime Reyes. Tiffany & Co.
Vs Ebay. AGENDA m Introduction Video Tiffany & Co. s a 1.- Introduction (Tiffany & Co. Video)

2.- Issue Presented

3.- Outcome After Court Rulings
-Direct Trademark Infringement
-Contributory Trademark Infringement
-Dilution
-False Advertisement

4.-Local & Federal Mexican Legislation Related To The Legal Dispute

5.-Personal Opinions
Tiffany & Co. was founded by Charles Lewis Tiffany and John B. Youngin New York City in 1837 as a "stationery and fancy goods emporium".




eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, by French-born Iranian-American computer programmer Pierre Omidyar. It is now a multi-billion dollar business with operations localized in over thirty countries. 2.Issue Presented *In 2004 and 2005, Tiffany conducted “methodologically flawed” investigations “of questionable value” which showed that over 70% of “tiffany” items purchased on eBay were counterfeit.

*eBay advertised the fact Tiffany products were available from sellers posting on its site, even though it was on notice that some of its sellers were selling counterfeit goods.

*eBay also purchased sponsored links on other sites (e.g. Yahoo!)which triggered on the word “tiffany,” but after Tiffany complained, eBay discontinued directly purchasing sponsored links. However, the lower court did find that eBay had continued to indirectly purchase sponsored links via another, third party company. 3.Outcome After Court Rulings 1*eBay had to implement a site-wide fraud prevention program that costs approximately $20 million per year, they track Tiffany (and other trademarkers) fraudsters. 2*Tiffany posted a warning to eBay customers in the “about me” page dedicated to Tiffany in order to alert them of fake products and invite them to purchase at their stores.

3*Tiffany (and other trademarkers) was also allowed to monitor the site and inform eBay whenever they detect a fake product on the site. eBay has an entire department of employees specially for fraud prevention. 4*When eBay detects or is alerted of counterfeit goods on its site, eBay responds promptly
within 24 hours and suspends or takes down the suspect auction page, followed by a thorough investigation and permanent page or seller cancellation in the event that
actual fraud is detected.


5* In some cases, eBay will refund a purchaser’s money if a counterfeit item was purchased on eBay. The Court of Appeals was satisfied that eBay did not have the specific knowledge of infringement required by the law and that eBay’s efforts to fight fraud did not constitute an intentional avoidance of the issue. Direct Trademark Infringement -The fact that Tiffany stated that eBay was infringing their trademark did not apply

-eBay may use Tiffany’s trademark to describe the trademarked good

-eBay may not cause confusion by implying affiliation with Tiffany FACT: eBay used the Tiffany trademark to describe TIFFANY'S products, not its own. Contributory Trademark Infringement To prove contributory liability for trademark infringement, eBay must:


*Have an actual or beneficial knowledge of the alleged infringement

*Continue to provide services to the infringer despite such knowledge or
reason to know of the infringing conduct.  Dilution In most cases, trademark dilution involves an unauthorized use of another's trademark on products that do not compete with, and have little connection with, those of the trademark owner. Counterfeiting causes dilution, however, eBay didn't sell the goods itself, and so it did not commit that dilution. False Advertisement According to the United States’ law, there are two rules to determine false advertising:

1) Literally false advertising

2) Likely to mislead or confuseDue to the fact that eBay knew of infringing products on its site and because eBay maintained advertising that suggested only genuine products, this led to a case of misleading/confusing false advertising 4.-Local & Federal Mexican Legislation Related To The Legal Dispute In Mexico The Federal Consumer Protection Law. Is the one in charge of protecting people from being confused by publicity in order to buy fake things.
It is in fact considered as one of the worst possible cases, and it could be punished with the closing of the enterprise Jurisprudence Artículo 32. La información o publicidad relativa a bienes, productos o servicios que se difundan por cualquier medio o forma, deberán ser veraces, comprobables y exentos de textos, diálogos, sonidos, imágenes, marcas, denominaciones de origen y otras descripciones que induzcan o puedan inducir a error o confusión por engañosas o abusivas.Para los efectos de esta ley, se entiende por información o publicidad engañosa o abusiva aquella que refiere características o información con algún bien, producto o servicio que pudiendo o no ser verdaderas, inducen a error o confusión al consumidor por la forma inexacta 1.Introduction La información o publicidad que compare productos o servicios, sean de una misma marca o de distinta, no podrá ser engañosa o abusiva en términos de lo dispuesto en el párrafo anterior.La Procuraduría podrá emitir lineamientos para el análisis y verificación de dicha información o publicidad a fin de evitar que se induzca a error o confusión al consumidor, considerando el contexto temporal en que se difunde, el momento en que se transmite respecto de otros contenidos difundidos en el mismo medio y las circunstancias económicas o especiales del mercado. Artículo 128 BIS. En casos particularmente graves, la Procuraduría podrá sancionar con clausura total o parcial, la cual podrá ser hasta de noventa días y con multa de $119,326.23 a $3’341,134.55.Las violaciones a lo establecido en el artículo 32 que se consideren particularmente graves conforme a lo establecido en el artículo 128 Ter de esta ley, serán sancionadas con la multa establecida en el párrafo anterior o bien con multa de hasta un 10% de los ingresos brutos anuales del infractor obtenidos por la comercialización del bien o los bienes, productos o servicios contenidos en la publicidad respectiva, correspondiente al último ejercicio fiscal en que se haya cometido la infracción, en caso de reincidencia.Artículo 128 TER. Se considerarán casos particularmente graves:I. a V. ...VI.Cuando la información o publicidad relacionada con algún bien, producto o servicio que pudiendo o no ser verdadera, induzcan a error o confusión al consumidor por la forma falsa, exagerada, parcial, artificiosa o tendenciosa en que se presente;VII.La reincidencia en la comisión de infracciones a los artículos señalados en el artículo 128 deesta ley, yVIII.Aquellas que vulneren los derechos contemplados en el Título Segundo de la Ley para la Protección de los Derechos de Niñas, Niños y Adolescentes Personal Opinions Gerardo Babatz: I agree completely with the court rulings on the subject, although it was not eBay’s fault and although it was not eBay itself that committed the infringements, they are responsible for giving the service that lets other people commit these crimes, and so they must act in some way to prevent this actions, even in a small scale, but it is better than to just stand aside, in that case, eBay would have had serious problems, they must collaborate with the trademarkers to prevent trademark infringements and continue giving out a great service. Nelly: I completely do not agree with the decision taken by the court in this case, because is not fare that after all the processes that a jewelry item of Tiffany & Co takes in being fabricated, they exist web sites such as eBay were you can buy the same product in fake for a lower price saying it is original. Also I do not think the court acted in a proper way because it is obvious that eBay by it self cannot control all the counterfeit products that are sell in their web sites, but also it is obvious that such a big web site as eBay must have since the beginning a counterfeit control program, so that cases like Tiffany & Co could be avoided. In my opinion ebay should be responsible for the fake items sell on their domain, because customers enter the page trusting there are only genuine things in there because of being a legal way of selling, and if people need to start taking care of fake stuff in legal shops, there will be a point yo will not now where to buy References Goldman, Eric. “Technology and Marketing Law Blog”, “eBay Mostly Beats Tiffany in the Second Circuit, but False Advertising Claims Remanded. http://blog.ericgoldman.org/archives/2010/04/ebay_mostly_bea.htmTrademark Dilution Revision Act of 2006, Pub.L. 109–312, § 2, 120 Stat. 1730, 1730-32 (2006) (amending 15 U.S.C. § 1125(c) (1946)) https://en.wikipedia.org/wiki/EBay

http://en.wikipedia.org/wiki/Tiffany_%26_Co. According with the dilution of the case presented I agree with the court because Ebay was not completely guilty in the case. It is almost impossible to control counterfeit products in commerce web sites like Ebay. They defended themselves in a correct way although Tiffany had good points in their favor. At the end both enterprises played well their cards and got into an agreement that will benefit all.
Risch , M. (2012). cases of interest. Retrieved from http://www.casesofinterest.com/tiki/Tiffany Inc. v. eBay Inc,

Castellanos, C. (2012). tiffany (nj) inc. v. ebay inc.. Retrieved from http://www.rubioramas.com/index.php?option=com_content&view=article&id=143:tiffany-nj-inc-v-ebay-inc&catid=19:resenas&Itemid=49

Vicini, J. (2012). Supreme court rejects tiffany trademark appeal vs ebay. Retrieved from http://www.reuters.com/article/2010/11/29/us-tiffany-ebay-idUSTRE6AS3YJ20101129 EBay fights its toughest legal battle
Tiffany lawsuit puts 'hands off' approach to thetest Retrieved from testhttp://www.nbcnews.com/id/6030048/ns/technology_and_science-security/t/ebay-fights-its-toughest-legal-battle/#.UYLW1JUoFFI

The 10 Most Counterfeited Products Sold in America. Retrieved from. http://www.dailyfinance.com/2011/03/14/the-10-most-counterfeited-products-sold-in-america/ Samia: Jaime:
Full transcript


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