eBay, Inc. ("eBay"), through its eponymous online marketplace, has
revolutionized the online sale of goods,especially used goods. It has
facilitated the buying and selling by hundreds of millions of people and
entities, to their benefit and eBay's profit. But that marketplace is
sometimes employed by users as a means to perpetrate fraud by selling
counterfeit goods.
Plaintiffs Tiffany (NJ) Inc. and Tiffany and Company (together, "Tiffany") have created and cultivated a brand of jewelry bespeaking high-end quality and style. Based on Tiffany's concern that some use eBay's website to sell counterfeit Tiffany merchandise, Tiffany has instituted this action against eBay, asserting various causes of action -- sounding in trademark infringement, trademark dilution and false advertising -- arising from eBay's advertising and listing practices. For the reasons set forth below, we affirm the district court's judgment with respect to Tiffany's claims of trademark infringement and dilution but remand for further proceedings with respect to Tiffany's false advertising claim.
