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Edition: U.S. Article Comments (0) Technology Exclusive: Apple chief patent lawyer to leave Doubt rising about tech stock values Cisco could cut up to 10,000 jobs: report Split Research in Motion in two: analyst Target to sell new electronic reader China says piracy problem not "extremely serious" Amazon seeks ballot measure to undo California tax EBay may be liable on trademark abuse: court MediaFile: HP's TouchPad tablet - the reviews Video: Nintendo's Mario gets refresh Follow Reuters Facebook Twitter RSS YouTube Read News Corp may be at risk for U.S. probe over bribery 4:31am EDT WRAPUP 9-Obama, lawmakers fall short on US debt deal 11 Jul 2011 Euro shaken by debt crisis; dollar benefits 11 Jul 2011 Exclusive: Apple chief patent lawyer to leave 6:41am EDT Wall Street shares down, led by Nasdaq 10:04am EDT Discussed 112 Obama, lawmakers meet for 75 minutes on debt impasse 80 WRAPUP 1-Taxes still a stumbling block in U.S. debt talks 64 Obama faces new obstacles in high-stakes debt talks Watched A Tokyo-Paris flight in under three hours on the horizon Fri, Jun 24 2011 War of words heat up U.S. debt fears 2:52am EDT Obama challenges Republicans on debt talks Mon, Jul 11 2011 EU court says eBay should protect trademarks better Tweet Share this Email Print Related News Court orders gay military service ban lifted Wed, Jul 6 2011 Google, Microsoft sued over map technology Tue, Jul 5 2011 Obama wins first appeals court healthcare ruling Wed, Jun 29 2011 Special Report: A little house of secrets on the Great Plains Tue, Jun 28 2011 Supreme Court rejects generic drug labeling suits Thu, Jun 23 2011 Analysis & Opinion Tech wrap: New effort underway in Internet piracy fight Is Murdoch free to destroy tabloid’s records? Related Topics Technology » Visitors chat next to the Ebay logo at the CeBIT computer fair in Hanover March 2, 2011. Credit: Reuters/Tobias Schwarz By Michele Sinner LUXEMBOURG | Tue Jul 12, 2011 10:41am EDT LUXEMBOURG (Reuters) - Internet auction marketplace eBay may have to take more responsibility over what is sold via its website or it could be sued for trademark abuse, Europe's top court ruled on Tuesday. The European Court of Justice said online market providers can be liable if they play an active role in the use of trademarks. They could also be held responsible for abuse if they were aware activity on their site was unlawful. The court also ruled EU governments are responsible for ensuring national courts can order market operators to act on trademark infringements by users of a marketplace such as eBay, as well as preventing further abuse. The case relates to allegations of trademark infringement through the sale of branded goods on eBay, lodged by L'Oreal -- the world's largest cosmetics maker -- in courts in Belgium, France, Spain and Britain four years ago. "EBay will be concerned by this decision, which means it could be forced to prevent intellectual property infringements by its users," said intellectual property lawyer Dominic Batchelor of London law firm Ashurst. "The practical and cost implications could be extensive." Responding to the ruling, eBay said it had made a significant effort to curb the sale of counterfeit goods on its website in recent years and expected little financial impact on its operations or its customers. "We have updated our measures to the new reality. We started many years ago. They are in place and I don't see what extra costs we would have ... on the basis of this judgment," a senior eBay official in Europe, Stefan Krawczyk, told Reuters. "Consumers and sellers will bear no extra cost," he said. EBay, which has used the slogan "whatever it is, you can get it on eBay," operates in more than 30 countries and had revenue of more than $9 billion in 2010. POLICING One of L'Oreal's complaints was over the sale on eBay of samples or testers explicitly marked "not for sale." The cosmetics giant also criticized the level of protection offered by eBay against the sale of counterfeit goods, and the availability of goods to consumers in the EU that were meant for other markets. L'Oreal was happy with the ruling. "(It) is a step toward effectively combating the sale of counterfeiting brands and products via the internet," it said in a statement. The court ruled that EU trademark rules do apply to offers for the sale of goods located outside the bloc, if it is clear that those offers target EU consumers. It said EU national courts should assess if any offer did target EU markets, but that in some cases exemptions from liability offered by EU laws might not apply. This would be the case particularly when an online service provider, such as eBay, "plays an active role" in managing information related to sale offers. "When the operator has played an 'active role' ... it cannot rely on the exemption from liability which EU law confers, under certain conditions, on online service providers such as operators of Internet marketplaces," the court said. The court also ruled an online market provider could be liable if it had enough information to judge an offer was unlawful and failed to prevent buyers from accessing it. Under current rules followed by eBay, the website blocks ongoing auctions if it is notified about suspicious activity. Intellectual property lawyers said this meant companies such as eBay will now have to be more vigilant on how their services are used. "This ruling will assist rights holders to force online service providers to be more active in policing," said Iain Connor, partner at Pinsent Masons. Yet industry experts said online market providers will not be forced to police their selling customers indiscriminately. "If (eBay) is already monitoring (a seller) only then is the onus on it to investigate further," said Theo Savvides of London law firm Osborne Clarke. (Reporting by Michele Sinner; Writing by Justyna Pawlak; Editing by David Hulmes) Technology Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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