eBay has been fighting MercExchange in a contentious 5-year patent war. In 2003, eBay lost - a jury found that eBay had willfully infringed on MercExchange's patents. eBay had the opportunity to license MercExchange patents - or even acquire them - at that time, but it did not. Instead, eBay will have to prove to the District Court that a design workaround it put in place in 2003 means it is no longer infringing on MercExchange's patents. Thus far, eBay has refused to explain this workaround.
eBay's refusal to license MercExchange patents could now affect sellers, depending on the outcome of the Supreme Court skirmish. If the high court affirms the Appeals Court ruling, there will be an injunction against eBay's Buy It Now feature. Thirty-four percent of eBay's Gross Merchandise Sales come from Buy It Now listings.
AuctionBytes has been covering the case and has published a guide with a timeline of events and other background on its website.
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