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J. Michael Huget, head of the Intellectual Property Group at Detroit-based law firm Butzel Long, said, "A significant part of this case was an evaluation of eBay's existing measures for policing itself. The Tiffany Necklaces evaluated them and found them to be sufficient. If I'm an online retailer, I'm going to look at eBay's policies very closely, follow them and use them as my defense: the eBay standard."Christie at McCarter and English said Sullivan's ruling means that eBay is doing enough to police its Web site."It provides a pretty clear objective benchmark for what will pass muster for further online sales," Christie said. "The online sales world is relatively new and there are not a lot of set rules or precedents to follow. This is one of those cases that will provide predictability as to what is and what is not acceptable conduct."The online retailer has not been as successful in denying its liability abroad. In a similar case last month, Paris' Tribunal de Commerce found eBay guilty of gross misconduct for its failure to thwart the sale of fake Louis Vuitton and Christian Dior goods.At the same time, the court awarded Parfums Christian Dior, Kenzo Parfums, Guerlain and Parfums Givenchy 3.2 million euros, or $5.1 million. LVMH argued that the fragrances could only be distributed through the retailers it had selected. The court ordered eBay to cease sales of Tiffany Notes four brands immediately or be subject to fines of 50,000 euros or about $79,000 per day.Paris' Court of Appeal upheld the ruling Friday, confirming the injunction and fine and ordering eBay to pay an additional 10,000 euros, or $15,736, in legal costs. The auction house had requested the urgent hearing contesting the initial ruling. It has continued to allow for the sale of LVMH brands throughout the appeals process.

The U.S. district court decision gave eBay a needed precedent on its home shores. It highlights not only the difference between the French and U.S. trademark law, but also the uncharted territory in which the judges in each case walk."Here in the U.S. it's going to be necessary for a mark holder to continue to police its brand," said Stephen Kramarsky, partner at Dewey, Pegno and Kramarsky, who writes a column on technology and law for the New York Law Journal. Kramarsky said that eBay is fighting for its business model and noted the company's position as a large part of the online economy."A Tiffany Pendants of judges are aware that they are refining laws that have been in existence for hundreds of years and reconciling them with new technology," he said.Credit: By Matthew LynchTiffany & Co.Mark L. Aaron, 212-230-5301mark.aaron@tiffany.comorLinda Buckley, 212-277-5900linda.buckley@tiffany.comTiffany & Co. today announced plans for a July 2008 opening of a store in the coastal city of Qingdao, China. The approximately 2,000-square-foot store will open in Hisense Plaza, the city's premier destination for luxury shopping, located at 117, Ao Men Road, in the Shi Nan District.Qingdao is famous as a summer resort, with a strong cultural heritage and scenic setting. Tiffany's new store in Hisense Plaza will be conveniently located within walking distance of five-star hotels and the city's yacht club.

"We are thrilled to open our doors in the elegant Hisense Plaza," said Rebecca Ip, Tiffany vice president of greater China, "and we welcome residents and visitors alike to discover Tiffany's heritage of design excellence and superior service that is unique among the world's premier jewelers."The new store will offer a range of TIFFANY & CO. collections, including the jeweler's celebrated diamonds in engagement rings and jewels of ultimate glamour; sterling silver and Tiffany Rings jewelry; the signature designs of Paloma Picasso, Jean Schlumberger and Frank Gehry; watches; gifts and accessories.Qingdao is Tiffany's eighth location in China. The jeweler currently operates two stores each in Beijing and Shanghai, and one store each in Tianjin, Shenyang and Chengdu.Tiffany & Co. operates jewelry and specialty retail stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia-Pacific and Europe and engages in direct selling through Internet, catalog and business gift operations. Other operations include consolidated results from ventures operated under trademarks or trade names other than TIFFANY & CO. For additional information, please visit tiffany.com or tiffany.cn.