Craigslist hits back in eBay dispute | Media

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It was last updated at 13:07 on May 14 2008.</div> </div> </div> <p>Craigslist is fighting back against minority shareholder eBay with a countersuit that accuses the online auction giant of false advertising, trademark infringement and unfair competition.</p><p>The lawsuit follows action initiated by eBay last month, where the firm tried to accuse Craigslist of trying to dilute its investment by more than 10% so that it would lose a seat on the the classified site's board.</p><p>Jim Buckmaster, the Craigslist chief executive, last night posted <a href="https://web.archive.org/web/20080517163917/http://blog.craigslist.org/etc/craigslist.vs.eBay.pdf">full details of the action on the company's blog</a>.</p><p>Published in full, the legal paper claims eBay has "abused its position" as a shareholder, at one point putting senior executives of its own rival classifieds site, Kijiji, on the Craigslist board and treating the site "as if it were one of eBay's subsidiaries".</p><p>Craigslist also contends that internally, Kijiji is refered to as "the Craigslist killer". It claims eBay tried to use its shareholder status to gain confidential information about the company, and placed "trademark-infringing" advertisements on Google which used the Craigslist domain and could have mislead consumers.</p><p>"We filed a complaint in California today, charging eBay with unlawful and unfair competition, misappropriation of proprietary information, deceptive passing-off, business interference, false advertising, phishing attacks, free-riding, trademark infringement, trademark dilution, and breaches of fiduciary duty," Buckmaster wrote.</p><p>"We respectfully ask the superior court in San Francisco to enjoin this conduct and order eBay to (1) make full restitution to Craigslist, (2) disgorge their related profits, (3) restore to Craigslist all shares of the company acquired by means of, or for the purpose of unfair competition, and (4) pay punitive damages for their malicious behaviour."</p><p>Ultimately, Craigslist's management is seeking to have eBay's share of the company returned to Craigslist.<br/>A spokeswoman for eBay said Craigslist's claims were unfounded and unsubstantiated, and that they were designed to distract from eBay's own lawsuit against Craigslist.</p><p>"eBay has, and will continue to be, a minority shareholder who believes in Craigslist, shares its values and acts with openness, honesty and integrity in its dealings with Craigslist's board and the online community," she said.<br/>"We strongly refute any suggestion to the contrary."</p><p><em><strong>·</strong> To contact the MediaGuardian news desk email <a href="https://web.archive.org/web/20080517163917/mailto:editor@mediaguardian.co.uk">editor@mediaguardian.co.uk</a> or phone 020 7239 9857. 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