Legal action was taken against the company on the grounds that its hosting of the sale of the recordings constituted a breach of a code on unfair business practices and that the company should have alerted users of its service that the recordings may have been illegal.
However, Judge Stuart Pollak ruled that eBay is immune from liability for such an action under the US Communications Decency Act which says that an interactive computer service cannot be treated as the publisher of information provided by another content provider.
According to a report in Law.com, an appeal is being considered on the grounds that the legislation is not applicable to an on-line auction house.