eBay Enforcement May Be A Groundless Threat

On an interim injunction application to restrain an alleged threat of infringement proceedings, the High Court held in Quads 4 Kids v Campbell that that the submission of an enforcement request through eBay’s Verified Rights Owner (VeRO) Program could constitute a groundless threat of infringement proceedings of Community Designs. The Court was concerned at the ability of a rights owner to use the VeRO program to "snuff out an avenue of the claimant’s business" without the need to follow up with formal proceedings, or any proper investigation of the veracity of the claim. The decision highlights the wide-ranging application of the groundless threats provisions, and raises the possibility that enforcement through eBay’s VeRO program may leave IP owners vulnerable to threats proceedings.