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EBay Fined $29.5M in Patent Case

pigreco314 writes "As reported by Washington Post and many others a federal judge Wednesday ordered online auction house eBay to pay $29.5 million to a Virginia inventor (former CIA engineer) who accused the company of stealing his ideas." This case has been going going on for awhile, but this looks to have some finality. Patenting "Buy it Now" is almost as stupid as One Click Shopping.

6 of 317 comments (clear)

  1. This is very bad news by mjmalone · · Score: 5, Insightful

    If a large corporation like ebay can't win a case brought up against them for infringing an obviously frivolous patent then what chance do the rest of us have? Drastic reform in the uspto is necessary. Since the government started cutting federal funding they have started looking at the organization as a corporation in place to serve their "customers." This is a horrible model for a patent organization, their customers should be every citizen of the country, not just those who file patents. The patent clerks are overburdened and they are rewarded on the basis of how many patents they accept and file, which means any patents they find not suitable are not beneficial to their careers.

    Also, how does the court system justify an award of $29.5 million? This seems like a huge amount for such a simple patent. Does the defendant own his own auction house? Is ebay's use of buy it now seriously impacting him financially? This is just absurd.

    In his ruling, U.S. District Judge Jerome Friedman said he would not require eBay to abandon the disputed technology, saying Woolston's lawyers failed to show that he would suffer irreparable harm if the court did not issue an injunction.

    If they failed to show that there would be irreparable harm from future use than how did they show that there was harm from prior use? I guess they don't need to prove any harm, they just need to show they own the patent and they get a huge sum of money. Wired's article says that both sides plan to appeal, maybe ebay can get a better deal in this process.

    1. Re:This is very bad news by Hayzeus · · Score: 5, Insightful
      They deserve this, and maybe it will teach them to play nice in the future.

      While they may well "deserve this", given their own portfolio of ludicrously obvious patents, the lesson that eBay will most likely take away from all of this is that they should be even more aggressive with their IP portfolio, not less. Clearly, if an individual was able to prevail over them in court, surely this implies that their own patents are at least equally defensible.

      The bottom line is that this is in no way a good thing for anybody -- except perhaps the patent holder and the IP legal industry.

    2. Re:This is very bad news by sweetooth · · Score: 5, Insightful

      Change Ebay to the name of some other company that you think is a good wholesome business. Do you still think a decision like this is good? Probably not. The fact that you don't like ebay shouldn't be a factor in your opinion of this being a good ruling or not. You should consider the precedant this would set and the effect on other peoples ability to do business. If ebay is having to pay 29 million dollars for the use of this technology do you think any small shop will be able to afford to license this technology and build a competing service? Not a chance.

  2. This is a bit wierd. by Prince_Ali · · Score: 5, Insightful

    He was able to defend a patent for how a normal sale works. I guess in the context of an auction it could be novel, but it still seems odd.

  3. How is this new by Megor1 · · Score: 5, Insightful

    Why is it that the patent office approves any obvious idea that has existed in the real world for a long time as something new if a computer is involved?

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  4. It should be noted that... by ipandithurts · · Score: 5, Insightful

    ...the judge:

    1.) Reduced the jury award from $35 million to $29.5 million. Not a LOT, but a few million here, and a few million there, you're soon talking REAL money.

    2.) Did NOT make the case "special" even though the jury found that eBay was a "willful infringer." The judge COULD HAVE tripled the award AND added attorney fees.

    3.) Ruled that eBay could STILL maintain their "infringing ways" even though patent law clearly provides that a patent holder has the right to excluded others from practicing their invention. Of course, the reports could have failed to notice that eBay was required to post a bond pending appeal and that that's the reason they can keep "infringing" the patent, at least until the Federal Circuit rules on this in a year or two.

    These facts lead one to believe that the judge didn't agree with the jury in this case. While it most certainly will be appealed, I still wonder if the judge is concidering overturning the jury verdict, not withstanding the verdict.

    So, while the posted comment seems to make it look like the judge is "going after eBay" and this now has some "finality" it actually appears to be quite the opposite.

    And as to it being "stupid" to patent this? I can site 29.5 million reasons it wasn't for the inventor to patent it. ;)

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