Saturday, March 11, 2006

U.S. Government Sides Against eBay in Patent Dispute



Yuki Noguchi writes in The Washington Post:

The federal government yesterday took a position against eBay Inc. in a patent dispute that threatens to shut down one of the online auction site's popular shopping features.

The Office of the Solicitor General said in a brief filed with the Supreme Court that eBay willfully infringed on patents held by Great Falls-based MercExchange LLC and should be enjoined from using its "Buy It Now" feature, which allows users to buy goods at fixed prices rather than compete in auctions. Goods sold using that system account for about a third of eBay's business.

EBay has been found guilty of willfully infringing two patents held by MercExchange but has not been barred from using the systems, because of a district court decision to deny an injunction. An appellate court reversed that decision.

More here.

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