After the U.S. Patent and Trademark Office issued what appeared to be a standard ruling in its first office action in the eBay requested reexamination of MercExchange's patents, both sides were arguing over its significance.

eBay's lawyer Jay Monahan said, "The Patent Office rulings have put a major cloud over MercExchanges's key patents."

MercExchange's legal representative, Hunton & William's Scott Robertson, said eBay's statements indicate eBay is desperate. "They are trying to put a positive spin on this for their shareholders."

MercExchange said its plans to seek an injunction against eBay's "ongoing willful infringement of the patent" remain unchanged. "The Federal Circuit has spoken, and that should be the end of it," said MercExchange's Tom Woolston.

Earlier this month, both sides also spun the March 16th Appeals Court decision in their favor. The U.S. Court of Appeals for the Federal Circuit favored each side in certain issues brought before it, affirming in part, reversing in part, vacating in part and remanding back to the District Court. Both sides claimed victory.

The animosity between eBay and MercExchange was noted by the District Court judge in the jury trial two years ago, when he said in his post-trial rulings that the trial was the most contentious he had ever presided over. When setting up a hearing during the trial, Judge Friedman voiced his preference for a root canal over the hearing. "The only reason I didn't take the root canal was, I couldn't get an appointment," he said.

With deadlines looming for post-Appeals-hearing motions and even another possible lawsuit against eBay, this time over MercExchange's auction patent, it seems the spin doctors will be kept busy.

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http://auctionbytes.com/cab/abn/y05/m03/i29/s00