Tiffany discovered that counterfeit jewellery bearing its mark was being listed and sold on eBay by third-party sellers. It sued eBay for contributory trademark infringement, arguing that the platform knew or should have known about the existence of the fake goods.
‍

The U.S. Court of Appeals held that eBay is not directly liable for infringement committed by users if it lacks specific knowledge about individual sales of counterfeit goods. General awareness that counterfeits are sold on the platform is not enough.
‍

However, the platform must act promptly and effectively once it receives concrete notices concerning specific listings of counterfeit products. Ignoring such notices can trigger liability.
‍

This is the logic of 'notice and takedown' applied to intellectual property: platforms do not monitor proactively, but must act swiftly after notice. Trademark owners therefore need an active online monitoring and notice programme.