WSJ 2nd UPDATE: Judge Dismisses Remaining Claim In Tiffany-eBay Dispute

The lone remaining claim was thrown out Monday in a long-running dispute between jeweler Tiffany & Co. (TIF) and eBay Inc. (EBAY) over the sale of counterfeit Tiffany items on the online auction website.

In April, a federal appeals court upheld the 2008 dismissal of trademark infringement and other claims against eBay. The appellate court said at the time that the website can't be held liable for trademark infringement if it takes steps to remove the infringing listings and isn't willfully blind to the sales.

However, a false advertising claim was sent back to the U.S. District Court in Manhattan for further proceedings.

"The court concludes that there is insufficient evidence in the extensive trial record to support a finding that the 'challenged advertisements were misleading or confusing,'" U.S. District Judge Richard Sullivan said in an order Monday.

Tiffany's lawsuit against eBay dates back to 2004.

The New York jeweler had argued that eBay knew it had a problem with counterfeit items being listed on its website and did little to clean it up. Instead, eBay insisted the obligation rested with Tiffany to identify and alert it to auctions of counterfeit Tiffany silver jewelry.

EBay's lawyers countered that Tiffany made a limited commitment to fighting knockoffs and unfairly tried to shift the legal burden to eBay.

Tiffany declined comment Monday.

"We are pleased with today's ruling, which settles the last remaining claim before the trial court in this case," said Michelle Fang, eBay's associate general counsel, in a statement. "The trial court has ruled in eBay's favor on every claim brought by Tiffany, providing an unequivocal validation of eBay's business practices."