Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Supreme Court Chooses the Middle Ground in the eBay Case

By Alexander Poltorak
June 28, 2006

The landmark decision of the Supreme Court in MercExchange LLC v. eBay, 547 U.S. __ (2006), has left many inventors and patent owners disappointed, as the Supreme Court sided with eBay and set aside the prior decision of the Court of Appeals for the Federal Circuit ('CAFC'). A closer reading of the decision, however, seems to indicate a balanced approach that gave both sides something to brag about.

A jury in the Eastern District of Virginia found that MercExchange's patent for an electronic exchange was valid, and that online auctioneer eBay and its affiliate Half.com had willfully infringed it though eBay's fixed-price 'Buy-it-Now' feature. They awarded MercExchange damages in the amount of $35 million. Following the jury verdict, the judge denied MercExchange's motion for a permanent injunction. The CAFC reversed that ruling, applying its 'general rule that courts will issue permanent injunctions against patent infringement absent exceptional circumstances.' The Supreme Court remanded the case to the District Court, stating that the District Court and the CAFC both erred by departing from the four-factor test in opposite directions.

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.