L'Oreal v eBay: a new decision of the Court of Justice on the liability of Internet Service Providers

The European Court of Justice (ECJ), with a decision of July 12, 2011 in L'Oreal v eBay case (C-324/09), once again ruled on the liability of Internet Service Providers (ISPs) for infringements of trademark rights, committed by their users. In this case, L'Oreal complained about the sale on eBay of products bearing its brands. According to the petitioner such conduct constituted infringement of its trademark rights, in some cases because they were non-original products, in other cases because they were free samples because not intended for sale or sold without packaging. In L'Oreal’s opinion such an offence would be attributable to eBay as the same displays the petitioner's trademarks on its website and has registered the marks in question in the Google AdWords service, to direct users, via links, to products sold on its website. The English High Court of Justice, before which the case is pending on the merits, has referred to the ECJ several questions relating to the obligations of a company operating internet marketplaces in order to prevent its users to infringe the trademark rights of others. The ECJ, while noting that this assessment lies with national courts, said that eBay should be defined as an ISP under the Electronic Commerce Directive (No 31/2000) which has an active role in tort because it does not provide a "neutral" Service but a real assistance in sales. In light of that active role, eBay can not therefore benefit from the exemptions from liability provided for "neutral" ISPs in the Directive on electronic commerce. Furthermore, as stated by the ECJ, even if eBay had not taken an active role in tort, exceptions to liability for content uploaded by users could have not been applied if it had been aware of the illegality of such content. The Justices of the ECJ have also stated that EU law provides for the obligation for Member States to ensure that its courts jurisdiction skilled in matters of intellectual property may compel ISPs to take measures to stop the infringements of intellectual property rights committed by users and measures to prevent further infringements.


07/18/2011 | Internet