Why does eBay not do anything about copy's counterfeit items when reported ???
Because eBay does not act on reports of counterfeits from ordinary member. Quote: "Only intellectual property rights owners can report eBay listings that infringe on their copyright, trademark, or other intellectual property rights". When they do, eBay will remove the listing concerned.
eBay suggests that "Members who are not the rights owner can still help by getting in touch with the owner and encouraging them to contact us".