By Scott Cameron

The U.S. Supreme Court issued a short ruling Monday that will allow eBay users to continue to use the popular “Buy It Now” option on its website. In the process, the Court may have significantly changed the shape of patent litigation.

At issue in eBay Inc. et al. v. MercExchange, L.L.C., was U.S. Patent No. 5,845,265, a business method patent held by MerExchange for an electronic market designed to facilitate the sale of goods between individuals on the Internet. The patent is designed to promote trust among buyers and sellers by establishing a central authority to process the transaction.
Continue Reading Supreme Court – You Can Still “Buy It Now” On eBay

By Audrey Millemann

A new case decided by the Federal Circuit Court of Appeals has made it even harder to prove inequitable conduct. Inequitable conduct, which can be asserted by a defendant in a patent infringement suit as an affirmative defense or by a plaintiff in a declaratory judgment action, results in the patent being unenforceable. As is true of patent invalidity, inequitable conduct must be proven by clear and convincing evidence. In M.Eagles Tool Warehouse, Inc. v. Fisher Tooling Company, Inc., 439 F.3d 1335 (Fed. Cir. February 27, 2006), the Federal Circuit held that intent could not be inferred solely from the patent applicant’s failure to disclose a prior art reference.
Continue Reading Inequitable Conduct…Disintegrating

By Dale Campbell

Last week, the United States Supreme Court heard eBay’s appeal of the Federal Circuit Court of Appeals’ decision issuing a permanent injunction against eBay, which prevents eBay from utilizing the technology involved with its “Buy It Now” purchasing method. The case involves an action brought by MercExchange against eBay alleging that eBay’s “Buy It Now” purchasing method infringes upon three patents held by MercExchange. “Buy It Now” allows an individual to purchase an auction item at a fixed price, rather than through the bidding process. At trial, eBay was found to have infringed two of the three patents alleged in the complaint and ordered to pay monetary damages. The trial court refused to impose a permanent injunction prohibiting eBay’s use of the “Buy It Now” technology. Both parties appealed to the Federal Circuit
Continue Reading A Patent Holder’s Right to Exclude Others – Will the Supreme Court Reverse 100 Years of Precedence?