Amazon does not breach trade mark rights when it stocks and transports goods for third-party sellers, an adviser to Europe’s top court said, siding with the U.S. online retail giant against U.S. cosmetics company Coty
BRUSSELS - U.S. online retail giant Amazon is not liable for unwittingly stocking trade mark infringing goods for third-party sellers, but should be diligent in checking whether products are legal, an adviser to Europe’s top court said on Thursday.
It also raises the question of the scope of online platforms’ responsibility for products sold, or content transmitted, on their sites. Coty said such practices violate its trade mark rights and that Amazon should be liable for stocking trade mark infringing goods. The German court subsequently sought guidance from the CJEU.
However, if they are actively involved in distributing the goods and if they operate a scheme like Amazon’s, then they should show diligence in checking the legality of goods sold on their platforms, he said.
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