The European Court of Justice today struck a blow to eBay in its fight against L'Oréal and other brand owners over liability for counterfeit goods sold on its website. The court today ruled that eBay and other online marketplaces cannot claim exemption from liability for these infringements, if they are aware of the illegal nature of the sales their sites facilitate.

This ruling means that, in the future, brand owners will be able to initiate legal proceedings against online marketplaces if they allow counterfeit goods to be sold through their site.

Kirsten Gilbert, Partner at Marks & Clerk Solicitors, comments: "Brand owners like L'Oréal will be jubilant at this ruling. Trademark owners are no longer alone in their fight for online brand protection. Instead, as is the case on the high street, companies which facilitate sales can be held accountable for the goods which pass through their hands.

"Brands have been concerned for years now that the internet has facilitated the trade of counterfeit goods. Items which would otherwise be available only from back-street traders have become instantly available to consumers in the privacy of their own homes. L'Oréal and other brand owners will be hoping that online marketplaces like eBay now sit up and pay attention to the sales of counterfeit items which go through their sites."

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