A lawsuit by jeweler Tiffany & Co against eBay brought under trademark law is set to open on Tuesday and could affect online auctions of luxury products.

Tiffany sued eBay in 2004 in Manhattan’s U.S. District Court, claiming the online auctioneer had aided violations of jeweler’s trademarks by letting counterfeit items be sold on its Web site.

At the heart of the lawsuit is who should be responsible for policing the Web site for counterfeit products — eBay or Tiffany, said experts, adding that the decision could set a precedent.

“It’s important if Tiffany prevails because it would force eBay to radically change the way it handles auctions of products with a famous trademark,” said Geoffrey Potter, chairman of the anti-counterfeiting practice at the law firm of Kramer Levin Naftalis & Frankel. “If eBay wins, the status quo would continue.”

The trial, which will be held without a jury before U.S. District Judge Richard Sullivan, is scheduled to end November 21.

Posted: 11|15|07 at 9:32 am. Filed under: Auction News.