An appeals court upheld a 2008 ruling that said Ebay is not liable for the sale of fake Tiffany jewellery on its auctions site. The court win marks another victory for Ebay against luxury goods makers, and spares Ebay from potentially devastating changes to its business.

But the appeals court returned the lawsuit to a lower court on a claim that some ads on Ebay that advertise Tiffany products may be misleading. Stricter advertising guidelines would be a nuisance for Ebay, but the with the 2008 ruling upheld, the auctions company is mostly in the clear.

Ebay continues to spar with luxury goods makers on both sides of the Atlantic. While this marks its latest victory in America, courts in Europe have been ruling in favour of LVMH, handing down two multi-million dollar judgements in recent months.