eBay sued for selling counterfeit watches in breach of its own policies

Steven Madden Ltd, footwear and accessories maker, took eBay Inc. to court over allegation of fake trademarked goods on its site. It accuses eBay of selling supposedly counterfeit watches bearing the Steven Madden brand name made by former licensee Vestal Watch Inc. Steven Madden is seeking unspecified compensatory and punitive damages.

Steven Madden representatives sent letters to eBay, asking for the watches to be removed from the website, but it said the watches were not removed, the complaint says.

"Over 99.85 % of goods sold on eBay have no suspicion of counterfeit," eBay`s Deputy General Counsel Mary Huser wrote, adding that the company works with owners to immediately remove counterfeit listings.

EBay has always maintained that it is the brand holders who are best equipped to recognize fakes. Besides, eBay said last year that it takes down more than 90 % of counterfeit goods from its site within four hours of their posting after being alerted by trademark holders.