Rare Book Monthly

Articles - May - 2010 Issue

Ebay's Victory in Fraud Case Offers an Example to Booksellers and Google

Tiffanyaboutme

The Tiffany warning page, about as easy to find on eBay as a needle in a haystack.


By Michael Stillman

A case pitting online auction giant eBay against luxury jeweler Tiffany's in the Second Circuit U.S. Appeals Court has all kinds of implications for sellers and buyers in the book field. The victory for eBay, which facilitates trade, but also facilitates fraud, is one about which booksellers and collectors may want to be aware. If I were a bookseller, I think I would want to post a copy of this decision in a spot visible to every potential customer who walked through the door.

This decision, though it does not apply directly, might also have implications for the Google Books case, currently being fought in another courtroom. We will get to this later.

Several years ago, Tiffany's, unsatisfied with eBay's efforts to stop the sale of fake Tiffany merchandise on their website, sued the auctioneer for trademark infringement. While exact figures are uncertain, there seems little doubt that a substantial amount of fake "Tiffany" jewelry is promoted and sold on eBay. If this shocks you, you are either incredibly naïve or have been living on another planet. However, the question was not whether eBay was selling fake "Tiffany" jewelry, nor even whether eBay was aware that they were selling fake "Tiffany" jewelry. Quoting the trial court, the Appeals Court stated, "a significant portion of the 'Tiffany' sterling silver jewelry listed on the eBay website...was counterfeit." The question, then, was whether eBay was obligated to do more than it was already to prevent the selling of fraudulent or misrepresented material on its site. The court said it was not.

Ebay argued that it had made all reasonable attempts to stop fraudulent merchandise from being sold. It had both automated programs and live representatives look at "Tiffany" listings for signs of fraud. It encouraged Tiffany to scour its listings and inform them of items it believed were misrepresented. It permitted Tiffany to post an "About Me" page on the eBay website where the jeweler stated, "Most of the purported TIFFANY & CO. silver jewelry and packaging available on eBay is counterfeit." Ebay provided warnings to sellers when they listed merchandise with the "Tiffany" name to be sure it was authentic, that eBay "does not tolerate listing of replica, counterfeit, or otherwise unauthorized items," and violation of this could result in suspension of the seller's account. Ebay does not automatically suspend a seller for listing his first fake "Tiffany" item, but employs something of a "three strikes rule" if the seller appears to be legitimate, most likely unaware that the item was counterfeit. In that case, a warning would be given first, but if it appeared that the seller was simply in the business of selling counterfeits, he would be removed immediately. Ebay suspends "hundred of thousands" of sellers every year, "tens of thousands" for suspected trademark infringement.

Without delving into the intricacies of case law the Court had to consider, the issue essentially came down to whether eBay was required to prevent all listings of counterfeit goods based on a "generalized" knowledge that misrepresentations were being made, rather than knowledge of specific cases. The Court came down on the side of specific requirements only. In other words, eBay is required to act when it has knowledge that a specific item is fraudulent, but not when it has reason to suspect that there are some unidentified fraudulent listings on its site. In order to show contributory trademark infringement, the Court said, "a service provider must have more than a general knowledge or reason to know that its service is being used to sell counterfeit goods. Some contemporary knowledge of which particular listings are infringing or will infringe in the future is necessary."

Rare Book Monthly

  • <b>Swann Auction Galleries Mar 10:</b> Francis Scott Key, <i>Star Spangled Banner,</i> first printing, c. 1814-16. $8,000 to $12,000.
    <b>Swann Auction Galleries Mar 10:</b> William Sydney Porter, a.k.a. “O. Henry,” archive of drawings made to illustrate a lost mining memoir, c. 1883-84. $30,000 to $40,000.
    <b>Swann Auction Galleries Mar 10:</b> [Bay Psalm Book], printed for Hezekiah Usher of Boston, Cambridge, c. 1648-65. $50,000 to $75,000.
    <b>Swann Auction Galleries Mar 10:</b> Book of Mormon, first edition, Palmyra, 1830. $40,000 to $60,000.
    <b>Swann Auction Galleries Mar 10:</b> <i>Noticia estraordinario,</i> probable first announcement in Mexico City of the fall of the Alamo, 1836. $40,000 to $60,000.
    <b>Swann Auction Galleries Mar 10:</b> Patrick Gass, first edition of earliest first-hand account of the Lewis and Clarke expedition, Pittsburgh, 1807. $6,000 to $9,000.
    <b>Swann Auction Galleries Mar 10:</b> Diploma from the Princeton Class of 1783, commencement attended by Washington & Continental Congress. $10,000 to $15,000.
    <b>Swann Auction Galleries Mar 10:</b> <i>Sprague Light Cavalry!</i> color-printed broadside, NY, 1863. $5,000 to $7,500.
    <b>Swann Auction Galleries Mar 10:</b> <i>The Lincoln & Johnson Union Campaign Songster,</i> Philadelphia, 1864. $3,000 to $4,000.
    <b>Swann Auction Galleries Mar 10:</b> Lucy Parsons, labor organizer, albumen cabinet card, New York, 1886. $800 to $1,200.
    <b>Swann Auction Galleries Mar 10:</b> Daniel L.F. Swift, journal as third mate on a Pacific Whaling voyage, 1848-1850. $3,000 to $4,0000.
    <b>Swann Auction Galleries Mar 10:</b> Two photos of Thomas Moran, Grand Canyon, silver prints, 1901. $1,500 to $2,500.
  • <b>Bonhams, Mar. 6:</b> Helvelius. Two Autograph Letters Signed to Francis Aston, Royal Society Secretary, noting his feud with Robert Hooke, 5 pp total, 1685. $70,000 to $100,000.
    <b>Bonhams, Mar. 6:</b> Newton, Isaac. Autograph manuscript on God, 4 pp, c.1710, "In the beginning was the Word...."?$100,000 to $150,000.
    <b>Bonhams, Mar. 6:</b> Beethoven's Ninth Symphony. First edition, first issue. Untrimmed copy in contemporary boards. $30,000 to $50,000.
    <b>Bonhams, Mar. 6:</b> Lincoln, Abraham. Signed photograph, beardless portrait with Civil War provenance. $80,000 to $120,000.
    <b>Bonhams, Mar. 6:</b> IMPEACHMENT. Original engrossed copy of the first Andrew Johnson impeachment resolution vote. $120,000 to $180,000.
    <b>Bonhams, Mar. 6:</b> Mucha, Alphonse. 11 original pencil drawings for?<i>Andelicek z Baroku,</i> "Litte Baroque Angel," Prague, 1929. $10,000 to $15,000.
    <b>Bonhams, Mar. 6:</b> Einstein, Albert. Annotated Galley Proofs for <i>The Meaning of Relativity.</i> 1921. $25,000 to $35,000.
    <b>Bonhams, Mar. 6:</b> Silverstein, Shel. Original maquette for <i>The Giving Tree,</i> 34 original drawings. $10,000 to $15,000.
    <b>Bonhams, Mar. 6:</b> Roth, Philip. Typed Manuscript with substantial autograph corrections for an unpublished sequel to <i>The Breast.</i> $10,000 to $15,000.
    <b>Bonhams, Mar. 6:</b> Taupin, Bernie. Autograph Manuscript, the original draft of lyrics for Elton John's "Candle in the Wind," 2 pp, 1973. $100,000 to $150,000.
    <b>Bonhams, Mar. 6:</b> HARVEY, WILLIAM. <i>De Motu Cordis et Sanguinis in Animalibus Anatomica Exercitatio.</i> Padua: 1643. $12,000 to $18,000.
    <b>Bonhams, Mar. 6:</b> CESALPINO, ANDREA. <i>Peripateticarum Quaestionum Libri Quinque.</i> Venice: 1571. $30,000 to $40,000.
  • <b>ALDE, Feb. 26:</b> Leon TOLSTOÏ. <i>Anna Karenina.</i> Moscou, 1878. First and full edition of the Russian novel, in the author’s language.<br>Est. 3 000 / 4 000 €
    <b>ALDE, Feb. 26:</b> Mark TWAIN. <i>Adventures of Huckleberry Finn (Tom Sawyer's comrade).</i> New York, 1885. First American edition.<br>Est. 5 000 / 6 000 €
    <b>ALDE, Feb. 26:</b> Walt WHITMAN. <i>Leaves of Grass.</i> Brooklyn, New York, 1856. Second edition gathering 32 poems. Est. 3 000 / 4 000 €
    <b>ALDE, Feb. 26:</b> Karen BLIXEN. <i>Out of Africa.</i> Londres, 1937. First edition in the UK, before Danish translation and American release.<br>Est. 1 500 / 2 000 €
    <b>ALDE, Feb. 26:</b> Ernest HEMINGWAY. <i>A Farewell to Arms.</i> New York, 1929. First edition with $2.50 on the dust and A on the copyright page.<br>Est. 2 000 / 3 000 €
    <b>ALDE, Feb. 26:</b> James JOYCE. <i>Ulysses.</i> Paris, Shakespeare and Company, 1922. First edition published by Sylvia Beach. Est. 3 000 / 4 000 €
    <b>ALDE, Feb. 26:</b> James JOYCE. <i>Dubliners.</i> Londres, 1914. First edition. Nice copy in publisher’s cardboard. Est. 2 000 / 3 000 €
    <b>ALDE, Feb. 26:</b> Franz KAFKA. 8 novels in German first edition, published in München, Leipzig and Berlin 1916-1931. Est. from 300 / 400 to 2 000 / 3 000 €
    <b>ALDE, Feb. 26:</b> David Herbert LAWRENCE. <i>Lady Chatterley's Lover.</i> Florence, 1928. Privately printed first edition. Est. 4 000 / 5 000 €
    John STEINBECK. <i>The Grapes of Wrath.</i> New York, 1939. First edition. Nice copy with $2.75 on the cover. Est. 1 000 / 1 200 €

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