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EBay Hangs On to Win|in Fake Jewelry Case

(CN) - EBay's victory in a trademark dispute over counterfeit Tiffany jewelry will stand after the Supreme Court on Monday turned down Tiffany's appeal.

Tiffany wanted the high court to overturn the 2nd Circuit's ruling this April for eBay. The federal appeals court in Manhattan found that eBay can't be held liable for trademark infringement when sellers hawk counterfeit Tiffany jewelry on the online auction site.

Tiffany claimed eBay contributed to the infringement by allowing "hundreds of thousands" of fake silver Tiffany items to be sold on its website.

The 2nd Circuit upheld a federal judge's ruling that the task of policing counterfeit goods falls on Tiffany, not eBay.

"To impose liability because eBay cannot guarantee the genuineness of all the purported Tiffany products offered on its website would unduly inhibit the lawful resale of genuine Tiffany goods," Circuit Judge Robert Sack wrote.

The high court turned down Tiffany's appeal without comment. Justice Sonia Sotomayor, a former 2nd Circuit judge, was recused.

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