• The Guardian, Wednesday, July 13, 2011 10 AM

A European court ruled that online marketplaces can be held responsible for the infringement of trademarks on counterfeit goods they promote, following a series of cases brought by L'Oreal to defend its brand.

That means eBay and others may be liable for trademark infringements if they are involved in promoting counterfeit goods, ruled the European Court of Justice in Luxembourg.

L'Oreal is challenging eBay to clarify the obligations of Internet marketplaces under EU law. L'Oreal claims eBay is liable for the sale on its website of counterfeit goods and of "parallel imports" -- L'Oreal-branded products not intended for the European market.

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