If I where in your situation, I would immediately add that text to all of my auctions with a justification as to why you will not accept pay-pal for your partic

If I where in your situation, I would immediately add that text to all of my auctions with a justification as to why you will not accept pay-pal for your particular transactions. I would then use a third party escrow service for anything that pay-pal could consider a counterfeit. This sounds to me like Pay-Pal is doing the bidding of trademark holders. When that is not it's role in society. It's not the counterfeit police and it should not be in the business of destroying counterfeit merchandise. They should require it be returned and if they feel like being good Samaritans, notify the trademark holder of the infringement. Let the holder police their own crap.