In a decision that will predictably be appealed, eBay can heave a sigh of relief after finding victory in American trademark law (not having had much luck in France where it coughed up a substantial chunk to Moet Hennessy Louis Vuitton). Non-liability for contributory infringement was awarded to eBay because U.S. trademark law requires that trademark owners be responsible for protecting their rights. Contributory infringement in Inwood Labs., Inc. v. Ives Labs., Inc. indicates that one who does not directly control others in the chain of distribution, can still be held responsible for their infringing activities under certain circumstances. Thus, if a manufacturer or distributor intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement, the manufacturer or distributor is contributorily responsible for any harm done as a result of the deceit. Thus, providers of forums such as eBay's can rest assured (so far) that they will not be liable on the theory of contributory infringement if adequate take down procedure are in place.
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