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EBay May Be Liable for L’Oreal Trademark Breaches

EBay Inc. can be held liable for trademark breaches on its auction site if it has been notified of continuing infringement, a European Union court aide said in a dispute involving L’Oreal SA.

While EBay isn’t liable for potentially infringing information posted by users on its site in general, the owner of the second most-visited U.S. e-commerce site can be held liable for any infringements from the moment it’s notified of a trademark breach and also for content it transfers to search engines, such as Google and Yahoo. EBay uses L’Oreal trademarks as sponsored links to lead users to infringing perfumes and other cosmetics, L’Oreal has said.