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Jury Orders eBay to Pay $35M for Infringing Patent
On May 27, 2003, a jury in the Eastern District of Virginia found that eBay willfully infringed patents held by MercExchange of Great Falls, VA and awarded MercExchange $35 million dollars in damages. The jury found that eBay's fixed price consignment articles known as 'Buy it Now' and its integrated automated payment system willfully infringed two MercExchange business method patents, U.S. Patents 6,085,176 and 5,845,265. Both sides have entered post-trial briefs relating to the jury award.
The patents were developed by Thomas Woolston, a former CIA technology expert who helped to build the CIA's communications network. Woolston attempted to license the technology to eBay before the suit, but the two sides could not come to an agreement. Previously, Woolston sued Overture Services, Inc., known as GoTo.com, for infringement of the '176 patent. That case settled before trial. Woolston also commenced an infringement suit against Priceline.com on a similar patent.
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