Goodle Adwords - L'Oreal vs eBay- Marketplaces liable for counterfeit goods

After the first ruling on the use of brands such as Google Adwords, there is now a second important ruling relating to market places. L'Oreal filed a case against eBay, because counterfeit products were offered on this website. The European Court has indicated that eBay (and other electronic marketplaces on the Internet) is liable if it actively promotes the sale or if they do not immediately remove ad-aware if a complaint is filed.
Hiding behind the e-commerce directive is not possible and that's good news for brand owners.
The verdict, however, works both ways. On the one hand sites are allowed to advertise using third party trademarks, but they must also have a good take-down procedure in order to report violations. On the other hand companies are expected to adopt active policies to tackle online counterfeit (for example web monitoring).






