Internet Auction Sites: Is Immunity from Infringement Claims Going..Going..Gone?

Originally published in IP Litigator, Counterfeit Corner column, June/July 2001

Internet auction sites have become a preferred venue for sales of counterfeit goods. Since they were first introduced, these enormously popular sites have provided a virtual flea market to purchase or sell any good or service, no matter how unique. The vast majority of goods and services offered through these sites are legitimate, yet there is a growing number that are not.

The increase of counterfeits offered through auction sites damage intellectual property owners by diverting sales, causing confusion and frustrating consumers. Counterfeits distributed through auction sites fail to meet the quality standards of the genuine articles, are not covered by the warranties offered by the manufacturer, and cannot be returned to the manufacturer for a refund or repair. Consumers purchasing these illegitimate goods, not surprisingly, are often unable to locate the seller to seek redress if a