Read the Case History, “Pirates of Globalization,” on pages 102-104 in your text.
Write a two-page paper, typed and double-spaced, in which you respond to each of the following questions.
- What more do you think the international business community could do to protect their intellectual property rights?
- Are international companies simply afraid to speak out against counterfeiting in potentially lucrative emerging markets for fear of being denied access to them?
- By using the latest technologies, people can often create perfect clones of original works. How are the Internet and the latest digital technologies influencing intellectual property laws?
- Locate information on the Tiffany versus eBay lawsuit and identify each side’s arguments and who prevailed. What are the implications of that lawsuit for the sale of counterfeits in online auctions
Answer preview
Tiffany versus eBay is an example of a lawsuit in the sale of counterfeits in online auctions Tiffany (NJ) Inc. v. eBay Inc., 600 F. 3d93 (2d Cir. 2010). In this case, Tiffany Inc. a jewelry company argued that eBay was contributory to trademark infraction since the online website was selling jewelry which had Tiffany’s marks. The company further argued that eBay was creating unfair competition, and making false advertisements thus making eBay generate more profits from that infringement. However, eBay refuted the claims and argued that the site was only acting as a service provider since the online auction was a marketplace. eBay further argued that the postings in the site did not suggest that Tiffany Inc. endorsed the listings. The courts justified eBay’s defending facts thus ruling in favor of the website. However, Tiffany’s loss in the case has a significant impact on IP owners since they have to bear the burden of identifying, investigating and reporting possible counterfeit products in the online marketplace. The implication of these is that the sale of counterfeits on the internet leads to enormous losses for the IP owners where they suffer brand destruction and the loss of customers.
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