In the closely watched suit, Tiffany alleged eBay was liable for infringing the Tiffany Love Locket and Chain trademarks because it facilitated the sale of counterfeit Tiffany items. Two lower courts sided with eBay, saying the auctioneer couldn't be held liable unless it had specific Tiffany Medium Elsa Peretti Bean pendant that particular items might be counterfeit. General knowledge by eBay that its site is used to sell counterfeit items isn't enough to establish trademark infringement liability, the courts said. The Supreme Court, without comment, rejected Tiffany's challenge to those rulings. The jeweler said a significant portion of the Tiffany jewelry listed on eBay is counterfeit, alleging that hundreds of thousands of counterfeit silver jewelry Tiffany Medium Elsa Peretti Open Heart pendant have been offered on the site. Tiffany said it participated in an eBay program in which the site would remove auction listings that Tiffany reported as Tiffany Medium Elsa Peretti Sevillana pendant, but the company said the program didn't resolve eBay's "massive counterfeiting problem."
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