Tiffany Lawsuit Alleges Jewelry in EBay Auctions Doesn’t Ring True

Tiffany & Co. wants EBay Inc. to stop hucksters from eating the jewelry retailer’s breakfast.

It said Monday that it sued the online auctioneer in federal court, alleging that EBay contributed to trademark infringement by allowing counterfeiters to sell fake Tiffany rings, necklaces and bracelets.

New York-based Tiffany doesn’t plan to go lightly pursuing its claims. The storied company thinks it has a 24-karat case.

In a test this year, it says, it bought 186 pieces of silver jewelry advertised on EBay as made by Tiffany and found that 73% was fake.

Complaints to EBay did little good, the suit says, thus putting the burden of policing EBay on Tiffany’s stylish shoulders.

So, for five months, two employees spent most of their working hours trolling EBay auctions for counterfeit merchandise. They persuaded EBay to remove 19,000 Tiffany knockoffs.

Tiffany’s suit says EBay should work harder to stop the fraud because the San Jose company makes a commission on each item sold and advertises on the Web that it sells blue-boxed bangles, baguettes and brooches.

EBay makes others police auctions for trademark infringement “for its own convenience and profit.”

EBay has fought off similar challenges before. A San Francisco judge in November 2000 dismissed a suit seeking to prohibit EBay from allowing the sale of bootleg recordings of Grateful Dead shows.

The auctioneer’s spokesman, Hani Durzy, noted that its VeRO program, for verified rights owners, had helped fight fraud.

“We take these concerns very seriously,” said Durzy, who wouldn’t comment specifically on the Tiffany tiff.