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Judge Permits eBay's "Buy It Now" Feature

stalebread points to a Reuters story reporting that a federal judge refused to issue an injunction against eBay's "Buy It Now" feature. Quoting: "Judge Jerome B. Friedman of Federal District Court denied a motion by the Virginia company, MercExchange, for a permanent injunction to stop eBay from using the feature. The Supreme Court ruled last year that, although eBay infringed upon MercExchange's patent for the service, it was up to the lower court to decide whether eBay had to stop using it. 'MercExchange has utilized its patents as a sword to extract money rather than as a shield to protect its right to exclude or its market share, reputation, good will, or name recognition, as MercExchange appears to possess none of these,' he wrote."

42 of 139 comments (clear)

  1. Ouch! by deftcoder · · Score: 4, Funny

    'MercExchange has utilized its patents as a sword to extract money rather than as a shield to protect its right to exclude or its market share, reputation, good will, or name recognition, as MercExchange appears to possess none of these,' he wrote.
    Ouch!
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    1. Re:Ouch! by moosesocks · · Score: 4, Insightful

      Seriously. I'm glad the judge spotted their very obvious abuse of the system.

      Actually, the RIAA only has one of those....

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  2. If only... by memojuez · · Score: 3, Interesting

    Is this the beginning of the end for patent trolls?

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    1. Re:If only... by GIL_Dude · · Score: 2, Insightful

      No, that doesn't hold up. What about that patent troll Eolas that beat Microsoft on the ActiveX thing? Complain all you want about ActiveX and "yeah, but it was Micrsoft" - but in the end, Eolas was a patent troll that beat a huge company with their patent.

  3. Link by mazzanet · · Score: 5, Insightful

    A link to the article may be useful :)

    1. Re:Link by Stalus · · Score: 4, Informative
  4. OMG Sanity !! by Romwell · · Score: 2, Funny

    Aaa ! Something is going wrong =)

  5. Google News has article on injunction ruling by strredwolf · · Score: 3, Informative

    Judge Permits eBay's "Buy it Now" feature to continue -- 96+ articles found in Google News.

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  6. as MercExchange appears to possess none of these.. by Anonymous Coward · · Score: 5, Funny

    Knock Knock

    Who's there?

    Merc.

    Merc Who?

    MercExchange.

    MercExchange Who?

    I know, I know, don't let the door hit me on the way out.

  7. This is horrible news... seriously by Actually,+I+do+RTFA · · Score: 4, Insightful

    I dislike software patents, and I dislike patent trolls. But think of the consequences of this decision: Only large companies with "market share" or a "brand name" are afforded the protection of software patents. Which only promotes the status quo by keeping all lobbists in favor of it. On the other hand, a big company can use patent law to protect their legal monopoly.

    I know it's not news that laws apply differently to the rich and powerful, but I thought that at least there was a veener of similarity.

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    1. Re:This is horrible news... seriously by BitZtream · · Score: 5, Insightful

      Really, in this case, it just allows everyone to use something that shouldn't be patentable.

      Its as if no one could sale a cola drink because Coke patented the idea of cola. Coke can't patent cola. They can do trademarking, copyrights, patent the formula, ect... but if someone comes along and makes a product like it, its fine and dandy, and good for me cause I like Pepsi better.

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    2. Re:This is horrible news... seriously by Anonymous Coward · · Score: 2, Insightful

      I disagree - this means that companies with large patent portfolios and no products can't just go around making a business of lawsuits. This is a good thing.

    3. Re:This is horrible news... seriously by MJOverkill · · Score: 3, Insightful

      Not really.

      Firstly, the Judge said that MercExchange has no apprechiable market presense at all. Any small business catering to even a small following of loyal customers has market presense. Considering that we've never even heard of MercExchange before this case came out, I doubt they have any reasonable percentage of the market (there is probably a case defined percentage used to measure this).

      Secondly, E-Bay has had this feature for years. If MercExchange was really trying to protect something so vital to their business as to require an injunction, they should have filed years ago.

      Thirdly, 80% of business in North America is considered 'small business'. Large corportations only make up the majority in small, niche markets where the cost of entry bars smaller entities from entering the market. I'm wlling to bet that you have never heard of the market leaders in most sectors of the economy, because they are not large enough to spend millions building a brand name. You don't have to be big to be in the market.

      This ruling is entirely fair, and long overdue.

    4. Re:This is horrible news... seriously by lakeland · · Score: 4, Insightful

      It is an interesting question but I disagree with you.

      The judge has said that to have a patent being enforced, you must be showing goodwill efforts towards bringing a patent to market. That doesn't cut out small startups, all it cuts out (apart from patent trolls) are defensive patent portfolios and small research houses which attempt to develop and then sell ideas. I think they will be able to adapt to this - show they've sold other patents perhaps. Defensive patent portfolios ... well, they're mainly to stop small players and patent trolls - I think weakening them is not such a bad idea.

    5. Re:This is horrible news... seriously by Actually,+I+do+RTFA · · Score: 3, Insightful

      I don't disagree that it shouldn't have been patented. What I disagree with is Amazon can patent something equally dumb, and it will stop me from infringing. But if I were to patent something dumb, like the idea of buying stuff with one-click, then they can infringe on my patent with impunity.

      And, your example is wrong. Coke cannot patent the formula (recipe formulas, unlike mathematical formulas in the form of software algorithims, are not patentable.) And Pepsi is horrible.

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    6. Re:This is horrible news... seriously by techno-vampire · · Score: 2, Insightful
      Only large companies with "market share" or a "brand name" are afforded the protection of software patents.


      That's not how I read tis. A small software company has a brand name and a market share, just like the big boys, and that's just as entitled to protection. What this decision seems to say is that if you're not making use of a patent, you're not entitled to protect it. The US patent system is almost out of control and this might be a sign the courts are starting to do what's needed to get it back under control. If you can't enforce a patent that you're not even trying to use, patent trolling will come to an end. I suspect that without trolling there will be far, far fewer patent applications, because there won't be a reason to patent everything you can think of just on the off chance that somebody, sometime might infringe it.

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    7. Re:This is horrible news... seriously by nacturation · · Score: 3, Insightful

      Secondly, E-Bay has had this feature for years. If MercExchange was really trying to protect something so vital to their business as to require an injunction, they should have filed years ago. From the fine article:

      "In a mixed outcome, the U.S. District Court for the Eastern District of Virginia in the nearly six-year-old case..."
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    8. Re:This is horrible news... seriously by ozric99 · · Score: 4, Informative

      Secondly, E-Bay has had this feature for years. If MercExchange was really trying to protect something so vital to their business as to require an injunction, they should have filed years ago.
      What? This battle has been going on for years. Ebay first approached MercExchange in 2000 offering to purchase the patent(s) they were about to infringe upon. MercExchange refused their offers, Ebay went ahead with their plans anyway. MercExchange filed suit againast Ebay in 2001 and won the lawsuit in 2003.
    9. Re:This is horrible news... seriously by Dak+RIT · · Score: 3, Insightful
      I think you're misreading the judges comment. The judge clearly stated that 'MercExchange has utilized its patents as a sword to extract money rather than as a shield to protect its right to exclude or its market share, reputation, good will, or name recognition', which means that, while market share is one possible valid reason to exercise patent rights, it is by no means a requirement (which is why the judge used the word 'or' and not 'and' when listing possible reasonable uses).

      Reputation, good will, and name recognition cover quite a lot of additional ground. I don't think this should be the ultimate test for acceptable patent use as laid out in this case, but I think the judge came to the correct decision in the case, and at least has made strides towards a more reasonable patent test.

      That said, it would be nice to see more done to undermine 'obvious' patents.

    10. Re:This is horrible news... seriously by iminplaya · · Score: 2, Insightful

      Patent a process, not an idea.

      No, no, no. Patent a machine, not a process nor an idea.

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    11. Re:This is horrible news... seriously by the_womble · · Score: 2, Insightful

      Small companies have market share: they have a small market share.

      The judge is saying that this company has no market share at all. It does not use the patent itself, so it is unfair to stop Ebay from using the patented idea, becuase Merc Exchange suffer no loss as a result of Ebays use.

      Please note this only affects the injunction: Merc Exchange still gets damages.

    12. Re:This is horrible news... seriously by budgenator · · Score: 2, Informative

      Chemical analysis doesn't always work and when it fails it's frequently in food and perfume analysis. I understand that Cool-Whip is impossible to duplicate without the secret.

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  8. Oh yes by wamerocity · · Score: 4, Funny
    Boy, I remember the good ole' days when the Old Fashioned American Lottery used to be as simple as being a lawyer and waiting in the emergency room to find people that were hurt in accidents.

    We have become so much more complicated these days, where now we take simple ideas that are difficult to work around like using the letter "i" or the "click" and suing people that use them for large amounts of money.

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  9. Obvious? by jorghis · · Score: 4, Interesting

    Why isnt anyone involved in this case pointing out that a patent has to be non-obvious? Is there something I am missing here? Legally that patent shouldnt be worth poop. At least in theory.

    1. Re:Obvious? by Dun+Malg · · Score: 3, Interesting

      Why isnt anyone involved in this case pointing out that a patent has to be non-obvious? Is there something I am missing here? Legally that patent shouldnt be worth poop. At least in theory. As I understand it, the "non-obvious" part applies only to prior art, i.e. if someone skilled in the art would also seize upon the same solution naturally, given the starting point of prior art upon which the patent has been built. The trouble we have is that the USPTO only considers it "prior art" if it has been previously patented. This causes trouble when you're dealing with crap like this that has no patented prior art because it shouldn't have been patented in the first place.
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    2. Re:Obvious? by Tablizer · · Score: 3, Insightful

      The recent Supream court ruling on obvious combinations may give strength to the obviousness claim. Almost any B-or-higher graduate in computer science can build a functioning Buy-It-Now button, and this can be tested. It is dumb to allow the patenting of goals. Only implimentations should be patentable.

    3. Re:Obvious? by kansas1051 · · Score: 3, Informative

      The trouble we have is that the USPTO only considers it "prior art" if it has been previously patented.

      MercExchange's patent was found non-obvious by the trial court during the law suit. You are 100% wrong regarding what evidence can be presented to show that an invention is obvious. Both a federal court and the USPTO can consider any evidence available to one skilled in the art, which includes any publicly-accessible information. If you do some searching, you'll discover that its common for patent examiners to use archive.org to reject patent applications.

      I'll even provide a link from the MPEP (the manual used by the patent office) for you.

  10. eBay's true response to the ruling? by Anonymous Coward · · Score: 5, Funny

    Great court, fast ruling, judge RECOMMENDED A+++++++

    1. Re:eBay's true response to the ruling? by Dachannien · · Score: 2, Insightful

      Verrrry carefully.

    2. Re:eBay's true response to the ruling? by labnet · · Score: 2, Funny

      Highly recommended /. comment. Best Ever. WOULD MOD FUNNY A++++.

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  11. Constitution vs patent trolling by White+Flame · · Score: 3, Interesting

    The Constitution of the United States gives Congress the power to enact laws relating to patents, in Article I, section 8, which reads "Congress shall have power . . . to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries."

    The Constitution _only_ grants power to congress to establish patents for the promotion of the progress of science and useful arts. As far as I'm concerned, it is outside constitutional allowances for the government to enforce patents for other purposes, like protecting financial interests of companies that do not promote the progress of science and useful arts.

    1. Re:Constitution vs patent trolling by maroberts · · Score: 2, Insightful

      You're taking a very narrow view.

      The Constitution is effectively saying that it is within the powers of Congress to enact laws regarding patents and copyright, if Congress believes that by doing so it will promote the progress of science and useful arts.

      The fact there may be unintended consequences and side effects to such laws is not within the remit of the Constitution. Protecting financial interests of patent holders, whether companies or individuals, however is a raison d'etre for patents, since by making an invention public, someone hopes to make money.

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  12. It's really a damn shame by wamerocity · · Score: 4, Funny
    that people like this have continued to ruin this market.

    Somehow, somewhere, patent trolls have lost their way. They seem to have forgotten what trolling means, what stifling innovation meant, what shitting-on-the-little guy was all about. It's not just about making a patent that you can sue and make money offer, and about sticking it to every one else who found a way to actually make that profitable...

    I swear, it's really a damn shame...

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  13. Sounds just like... by MeditationSensation · · Score: 2, Interesting

    ...Amazon's one-click shopping. I wonder what ever happened to that.

  14. The article is obviously fake.. by Brickwall · · Score: 3, Funny

    Common sense and judicial decisions regarding patent trolls are like matter and anti-matter; they can't exist in the same universe.

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  15. Re:They should trash it anyway by Tablizer · · Score: 2, Insightful

    Buy It Now, when it was introduced years ago, marked the beginning of the slow and painful death of ebay as THE auction site on the internet. Now it's all a bunch of buy-it-now crap from fronting retailers, the real people are all gone.

    Please clarify. It just means that Ebay is a hybrid auctioneer and store hoster.

  16. Re:$25 Million by Tablizer · · Score: 3, Insightful

    I think I am going to patent how to run an organization evily and then sue paypal for stealing my business model.

    Microsoft has prior art.

  17. I don't think you're interpreting this right. by raehl · · Score: 3, Insightful

    The injunction wasn't denied JUST because it wasn't a big company. It was denied because:

    - MercExchange was not using the technology, AND
    - MercExchange had never used the technology, AND
    - MercExchange had no plans to use the technology, AND
    - MercExchange had never licensed the technology, AND
    - MercExchange had no plans to license the technology.

    This ruling doesn't say you have to be a big company with a brand reputation to get an injunction. If, for example, you had sold an exclusive license to another company, you would still get your injunction. But, if you were going to patent something, then do nothing with it until someone else did, then when they do you sue them and demand that they stop, the judge is going to say no, force the infringer to pay you, and that's the end of it. 'Inventor' gets paid, infringer stays in business providing the service the inventor never had any intention of providing themselves anyway, and consumer gets to purchase the service. Everybody wins, but the patent troll doesn't get an inordinately large payment by holding an entire business hostage.

  18. Re:as MercExchange appears to possess none of thes by lancejjj · · Score: 4, Insightful

    MercExchange.
    MercExchange Who?
    I know, I know, don't let the door hit me on the way out. The only disturbing part of all this is that it would appear that perhaps the law favors large, recognized companies. Small companies and individuals would seem to have a substantial disadvantage under the law.

    Don't get me wrong - I think patent law has been totally out of control for the last decade or more. I also think it has its place. But in all cases, I'd hope that the law would apply to everyone, and not just for the protection and benefit of the largest, wealthiest, or most highly recognized names.

    This seems to be pop law. "I'm not ruling in your favor, as you're not the type of company/organization/person I think you should be, and some other things". It isn't that the law is being interpreted here - it's that a judgement is being passed on the qualities of one of the parties, without regard to the law.

    Sounds like the new, crappy judicial system is coming back into town. The super-wealthy may rejoice.
  19. Re:as MercExchange appears to possess none of thes by budgenator · · Score: 3, Insightful

    I think what the court is trying to say is that because patents are intended to Promote useful arts and sciences, that a company without useful products to promote shouldn't be afforded a full monopoly on their patented methods. Obviously MercExchange seems to be a black case a patent holder without a product or intention of having one just trolling the system and there are many white cases where companies hold a patent produce a product and even license to competitors. The gray cases are going to be the tough ones, the small guy struggling to bring a product to market and eventually gives up and makes money through licensing alone.

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  20. Re:as MercExchange appears to possess none of thes by hackstraw · · Score: 2, Insightful


    MercExchange is a pseudo-business front for a patent lawyer. I did research on them when I first heard about them, and its pretty clear what they are.

    This ruling on allowing the "buy it now" feature seems clearly the right one, but the thing that really bothers me is that I don't see parasites like this going away, and what is going to happen once something stupid like this actually gets backed. The SCO fiasco and one click patent are great examples.

    I mean how much time and money and effort is wasted on crap like this? These things really bother me, because I don't see them becoming less likely to happen in the future, but the opposite. It would be nice if the US had in its legal system where the aggressor/plaintif had to pay both sides of a lawsuits bills if the court rules in favor of the defendant.

    Although lawyers like ambulance chasers don't have the most respect, I see them as a necessary evil to keep people/businesses honest, but I simply see no value in these business methods, patent, and intellectual property parasites.

  21. Agreed. This is bad. (See link) by xigxag · · Score: 4, Insightful

    all it cuts out (apart from patent trolls) are defensive patent portfolios and small research houses which attempt to develop and then sell ideas.

    But that's a huge deal. Basically then, if you're an inventor, you're screwed. Let's say you come up with a way to increase the efficiency of jet engines. According to this, unless you actually plan on selling jet engines, you've got no way to enforce your patent. You can offer to sell the patent to a jet manufacturing company, but why should they buy it from you, since you've got no leverage over them? They can just go ahead and use your invention, and since you don't actually manufacture jet engines yourself, you can't stop them.

    And that's more or less what happened to MercExchange, at least according to this article. eBay came to them to offer to buy their portfolio, but really they were just looking it over to see if they could get away with violating it. And after eBay's legal team looked things over, they simply decided to pull a Microsoft and totally violate the portfolio with no compensation. And make no mistake, they did violate it, as decided by a jury. They're simply hoping at this point that they can render moot the jury verdict by getting the underlying patents invalidated.

    Make no mistake here. eBay are the bad guys here. MercExchange aren't a patent troll company - they've got a homegrown portfolio and in my opinion deserve to have their ideas protected, insofar as ideas should be protected at all. If you want to rail against software or business method patents in general, maybe you're right, but let's start with the big fishes' huge portfolios first before we go after the guppies.

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