Ebay settles patent row with MercExchange

 

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By Reuters

Posted on 29 Feb 2008 at 11:54

EBay and MercExchange have settled a long-running patent lawsuit, ending a fight that prompted a landmark US Supreme Court ruling.

MercExchange, which holds several patents related to internet auctions, filed against Ebay in 2003, requesting an injunction against the website's continued use of the "Buy It Now" feature. Though the injunction was refused, the firm was awarded $30 million compensation which Ebay swiftly appealed.

The two sides have now settled the dispute with Ebay agreeing to buy three patents from MercExchange which govern the technology needed to run its web search, online auctions and fixed price sales. Ebay did not disclose how much it was paying.

The legal fight resulted in a Supreme Court ruling in 2006 weakening courts' power to issue injunctions barring firms from using infringing technology.

"We're pleased to have been able to reach a settlement with MercExchange," says Mike Jacobson, Ebay general counsel.

Ebay is still embroiled in a lawsuit with luxury goods manufacturer Tiffany & Co, which has accused it of being a rat's nest of fake items.