LUXEMBOURG, July 12 (UPI) -- Online marketplaces such as eBay could be liable if their users sell fake goods through their Web sites, Europe's highest court ruled Tuesday.
The European Court of Justice said operators of online marketplaces can't escape liability if they know of or control information about sale items on their Web sites, the court said in a release.
The court, sitting in Luxembourg, also said marketplace sites could be liable if they have information to suggest any online sales are unlawful but don't promptly remove the items or otherwise block the sale from their Web sites.
"National courts must be able to order those companies to take measures intended not only to bring to an end infringements of intellectual property rights but also to prevent further infringements of that kind eBay operates a global electronic marketplace on the Internet, where individuals and businesses can buy and sell a broad variety of goods and services," the release said.
The case was brought by cosmetics and personal care giant L'Oreal, which complained that eBay was involved in trademark infringements committed by users of its Web site. The company also claimed that by buying from Internet referencing services keywords corresponding to the names of L'Oreal trademarks, eBay directs its users toward goods that infringe trademark law that were available for sale on its Web site.
While making it clear that national courts were to oversee any assessment, the European Court of Justice said it considers "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, optimizing the presentation of the online offers for sale or promoting those offers."
The court held that European Union law requires member countries to ensure their courts can order an online marketplace operator to take measures that contribute not only to ending an infringement but also prevent further infringements.
