U.S. Supreme Court To Hear eBay Patent Case

The U.S. Supreme Court will hear a patent-infringement lawsuit involving eBay and a patent holding company that eBay lost in 2003.

MercExchange holds a patent over sales and purchasing methods used in online auctions. The appeal deals with whether the U.S. District Court that handled the case should have issued a permanent injunction against eBay. The Federal U.S. Circuit Court of Appeals, which handles patent lawsuits on appeal, ruled that the federal trial judge should have issued a permanent injunction against eBay, which said they believe the legal reasoning used will force district courts to issue more injunctions in patent lawsuits. Meanwhile, Congress is considering legislation that would change how patent injunctions are issued by federal courts. The U.S. Patent and Trademark Office is also exploring the issue.

Wall Street Journal, 28 November 2005 (sub. req’d)