Auction giant eBay is being sued by the owner of a patent that
covers the “method and apparatus for facilitating internet commerce
through internetworked auctions” and, according to CNet News, eBay
has warned investors that, if it loses, the case could be very
damaging.
The apparent inventor, Thomas Woolston, assigned the patent
rights to his company, MercExchange, which now holds the rights to
four internet auction patents. Woolston claims that eBay contacted
him in 2000 with a view to buying his patents. When negotiations
broke down, eBay began wilfully infringing, according to the
lawsuit.
CNet reports that a recent eBay regulatory filing warns that, if
MercExchange wins, “we may be forced to pay significant damages and
licensing fees, modify our business practices or even be enjoined
from practicing a significant part of our US business.”
A trial is scheduled for 12th November 2002.
