Stardate 20010907.0743 (On Screen): eBay was sued because videotapes of a copyrighted TV show were auctioned on its site. It successfully argued in court that it is not like, say, Christies, an auction house which actually vouches for the material it sells. Rather, eBay is the electronic equivalent of the operator of a flea-market, who doesn't closely monitor what's sold. Responsibility lies with the sellers.
That's all well and good, and gets them off the hook on this particular lawsuit, but I wonder if they've really thought through the ramifications of that position. eBay fraud has been a problem for a long time, and now eBay has taken a position in court that it isn't responsible for anything sold on its site. This could erode the confidence of bidders, and without bidders there will be no eBay. Is this a pyrrhic victory? (discuss)