728_header.jpg (23748 bytes)
 Home   EB Blog   AB Blog   Letters   Podcasts   ABTV   Forums   EPIS   PR Service   Classifieds   Ecommerce EKG   Service Ratings   
  Subscribe    RSS Feeds    Twitter        Contact Us  Web Site  
Service Ratings 
   Auction Sites
   FP Marketplaces
   Inventory Management
   Payment Services
   Storefronts & Carts
   Sniping Services
   Wholesale/Dropshipping
   Email List Hosting
   Consignment Services
   Ecommerce EKG 
   Auction Calendar
   Collectors' Links
   eBay Promo History
   Bookshelf
   Fraud Resources
   Drop-Off Store Laws
   ABTV
   Ecommerce Resources
   Photo Tips
   Marketing Inserts
   Yellow Pages
   Advertising

EcommerceBytes-NewsFlash, Number 1247 - March 29, 2006 - ISSN 1539-5065     Previous | | Next
eBay Patent War: Best Case/Worst Case Scenarios
By Ina Steiner
EcommerceBytes.com
March 29, 2006




Although eBay lost a patent lawsuit in 2003, it's been business as usual at the global online auction site. Sellers are selling and buyers are buying. But the ramifications from that 2003 verdict may be on the way. Today, the Supreme Court reviews eBay's argument that there should be no injunction against its Buy It Now features (See background at URL). Its decision will have a major impact on what comes next.

Let's take a look at two possible outcomes, a best case and a worst case scenario for eBay and its buyers and sellers.

Best Case Scenario
Two issues are now at stake. The first is whether the District Court that heard the case will be forced to issue an injunction against eBay. If not, eBay can continue to offer the Buy It Now feature on its site. Thirty-four percent of Gross Merchandise Sales from eBay comes through Buy It Now sales.

The second issue at stake is whether eBay continues to infringe on MercExchange's patents. eBay said its design workaround put in place after the trial in 2003 makes it non-infringing. If the District Court finds it is not infringing, life goes on as usual for eBay once it pays damages awarded to MercExchange for infringement that took place before the workaround.

Worst Case Scenario
The worst case scenario for eBay would be a decision from the Supreme Court that the District Court must grant MercExchange's request for a permanent injunction against eBay's Buy It Now feature and a ruling from the District Court that eBay continues to infringe on MercExchange's patent.

This would mean eBay sellers could no longer sell items at fixed prices and MercExchange would likely go after eBay's auction listings as well. The Appeals Court cleared the way for another lawsuit against eBay for infringing MercExchange's '051 patent.

In that case, MercExchange patents are potent, and the company could conceivably sell its patent portfolio to an eBay compeititor.

Whether that competitor would allow eBay to license the patents and at what price is unknown, since this is all speculation. But sellers should be paying attention, because it seems anything could happen.

Wild Card
The wild card in the eBay Patent War with MercExchange is the U.S. Patent and Trademark Office. eBay ordered a reexamination of the patents, and the USPTO agreed. If it should make adjustments to the '265 patent before the District Court gets the caes back, it could affect the jury verdict, and could be another "best case" scenario for eBay.

It's no surprise all eyes are watching what takes place in Washington today.

You may quote up to 50 words of any article on the condition that you attribute the article to EcommerceBytes.com and either link to the original article or to www.EcommerceBytes.com.
All other use is prohibited.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletters

Email this story to a friend.

Previous | | Next

 EcommerceBytes Blog 
 AuctionBytes Blog 
 Letters to the Editor 
Related Stories 
Related Stories
  • AutoTrader Licenses Online Auction Patents from MercExchange - January 20, 2003, Issue #466
  • Judge Rules on Post-Trial Motions in eBay Patent Lawsuit - August 07, 2003, Issue #587
  • eBay Petitions USPTO to Reexamine MercExchange Patents - June 17, 2004, Issue #784
  • The eBay Patent Wars: Interview with MercExchange CEO Thomas Woolston - September 30, 2004, Issue #859
  • eBay Questions Jury Instructions During Patent Appeal Hearing - October 06, 2004, Issue #863
  • Court Rules on MercExchange v eBay Patent Case - March 16, 2005, Issue #975
  • USPTO Issues Action in eBay-Requested Re-Exam of MercExchange Patent - March 29, 2005, Issue #984
  • Bickering Continues in eBay Patent Case - March 30, 2005, Issue #985
  • eBay Asks Supreme Court to Hear Patent Case - May 13, 2005, Issue #1017
  • New Developments in eBay - MercExchange Patent Suit - September 28, 2005, Issue #1117
  • Lawrence Lessig Part of Amicus Brief in eBay Supreme Court Case - October 07, 2005, Issue #1124
  • The eBay Patent Wars: PESA Summit Skirmish - October 29, 2005, Issue #1139
  • The eBay Patent Wars: PESA Summit Skirmish - October 29, 2005, Issue #1140
  • Supreme Court to Hear eBay Patent Case over Injunction Ruling - November 28, 2005, Issue #1160
  • MercExchange Gets Funding before Facing eBay and Supreme Court - December 02, 2005, Issue #1164
  • eBay Patent Wars: Behind-the-Scenes Battles - December 21, 2005, Issue #1178
  • eBay Patent Wars: MercExchange Reaches Agreeement with Patent Office - December 23, 2005, Issue #1180
  • The eBay Patent Wars: U.S. Government Weighs In - March 10, 2006, Issue #1234
  • eBay Patent War: Best Case/Worst Case Scenarios - March 29, 2006, Issue #1247
  • eBay and MercExchange Have their Day in Court - March 29, 2006, Issue #1247
  • Supreme Court: No Injunction in eBay Case, Back to District Court - May 15, 2006, Issue #1279
  • eBay Patent Wars: Hearing Set for Friday - November 14, 2006, Issue #6
  • eBay Patent Wars: Judge Wonders about Design Workaround - December 29, 2006, Issue #1441
  • eBay Patent Hearing Set for June: Buy It Now at Issue - April 18, 2007, Issue #1519
  • eBay Patent Wars: MercExchange Likely to Appeal Injunction Ruling - July 30, 2007, Issue #1588
  • eBay Must Fork over Damages in MercExchange Patent Case - December 12, 2007, Issue #1683
  • eBay Formulating Appeals Strategy in MercExchange Patent Case - December 13, 2007, Issue #1684
  • eBay v MercExchange Patent War: It's Over - February 28, 2008, Issue #1737


  • Discussion Forums 
    Have a question about buying or selling online? Want to get marketing or technical advice? AuctionBytes Discussion Forums are the place to come to get answers to your questions and get advice! Great tips - a refreshing change!

    Current Discussions:
     

    About Us      Privacy Policy      Link to Us      Partners      Our Writers      Write for Us      Press        Site Index

    Copyright 1999-. Steiner Associates LLC. All rights reserved.