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The current Web technology is not suitable for representing knowledge nor sharing it among organizations over the Web. There is a rapidly increasing need for exchanging and linking knowledge over the Web, especially when several sellers and buyers come together on the Web to form a virtual marketplace. Virtual marketplaces are increasingly being required to become more intelligent and active, thus leading to an active virtual marketplace concept. This paper explains an infrastructure called the knowledge network that enables sharing of knowledge over the Web and thus effectively supports the formation of virtual marketplaces on the Web. The concept of an active virtual marketplace can be realized using this infrastructure by allowing buyers and sellers to effectively specify their knowledge in the form of events, triggers, and rules. The knowledge network can actively distribute and process these knowledge elements to help buyers and sellers to easily find each other. An example active virtual marketplace application has been developed using the knowledge network.