"eBay is committed to protecting the intellectual property rights of third parties and to providing its users with a safe place to trade. eBay created the Verified Rights Owner (VeRO) Program so that intellectual property owners could easily report listings that infringe their rights. It is in eBay’s interest to ensure that infringing items are removed from the site, as they erode buyer and seller trust." [bold is mine]
"Although the Internet seems custom-built for copyright infringement, trademark infringement also abounds, and nowhere is this more apparent than on eBay, the Internet’s leading online auction site, where over one million items, many of them brand name goods, are traded each day. As an online facilitator of services between parties exchanging brand-name goods, many which are not authentic, eBay may be liable as a contributory (or even vicarious) infringer.But while secondary copyright infringers can look to section 512 of the Digital Millennium Copyright Act (“DMCA”) as a shield against liability, alleged secondary trademark infringers, like eBay, have no such sanctuary. This unfortunate void has forced eBay to fashion a self-help remedy called the Verified Rights Owner Program (“VeRO”), which essentially deputizes the rights owners themselves to police infringing listings on eBay. But just as the fox has little incentive to act prudently while guarding the henhouse, rights owners have routinely overreached when armed with a quasi-official infringement enforcement badge. " [section 512 begins on page 8)
"eBay similarly lacks any incentive to protect its sellers. As a result of its virtual monopoly on the online auction market, sellers have few alternatives to eBay’s sizeable market and are forced to sue the complaining rights holder if they wish to reinstate their listings. eBay punishes sellers who have had listings removed under the VeRO Program, and it has scant oversight in place to rectify wrongful listing removals at the hands of overzealous rights owners.This inequity could be cured legally in one of two ways: eBay could modify its VeRO Program to account for the due process it owes its selling community, or Congress could enact a safe-harbor provision for online service providers under the Lanham Act similar to section 512 of the DMCA"