Internet auction company eBay has filed an action in the US District Court in San Jose against rival auction site BidBay. The suit alleges that BidBay has imitated its look and feel to profit from the established reputation and goodwill enjoyed by eBay. The company is also concerned that cosmetic similarities between the web sites may lead to public confusion.

The appearance of the BidBay web site mirrors certain features associated with eBay, including its colour scheme and logo. The incorporation of additional functions into the BidBay site, such as the provision of a facility for users to keep note of their purchases and sales, have also been attacked by eBay.

According to BidBay, its domain name was purchased by its present CEO George Tannous through an eBay auction. He set up the rival site because he felt that the eBay services were not user-friendly. There has been no official response from BidBay on the lawsuit, but the E-Commerce Times reports that Tannous intends to counter-sue eBay.

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