Dec 13
EBay to Appeal Patent Infringement Ruling
San Jose, Calif — Dec 12, ‘07 — eBay released the following statement in response to the December 11, 2007 District Court ruling in the MercExchange v. eBay case.
“We are disappointed with the court’s order and we plan to appeal it. In its ruling, the court concluded that it did not have the legal right to consider the merits of our arguments concerning the ‘265 patent, but rather was required to reject our motions based on the procedural posture of the case. We intend to appeal the Court’s ruling on the procedural issues and remain confident that after the appeal, the Court will consider our arguments on their merits.
“Additionally, our motion for summary judgment that our 2003 design-around was effective and there is no ongoing infringement of the ‘265 patent, and that no further damages are due, also remains pending before the court.
“We remain pleased with other developments in this ongoing case, including the decision by the United States Court of Appeals to invalidate another patent in this case; the May 2006 unanimous Supreme Court decision in eBay’s favor on MercExchange’s request for an injunction; and the District Court’s subsequent affirmation in September 2007 that no injunction is called for. We look forward to the opportunity to appeal yesterday’s District Court ruling.”
Tuesday’s ruling by Judge Jerome Friedman stems from a jury’s 2003 verdict finding eBay and eBay subsidiary Half.com liable for $35 million for intentionally infringing two MercExchange patents. The US Court of Appeals for the Federal Circuit later reduced the award to $25.5 million.
Friedman in July denied eBay’s request to stay proceedings on one of the patents, governing eBay’s so-called “Buy It Now” feature that allows users to buy an item outright at a given price without bidding for it.
Friedman said in July the US Supreme Court’s 2006 ruling sending the case back to the trial court for further action had no bearing on the jury’s 2003 verdict. More at eBay.