The disputed patent covers a technology in which a website acts as an intermediary between buyers and sellers
The US government has sided against a request by eBay to change an automatic injunction provision

vnunet.com analysis: US government sides against eBay in patent spat

Automatic injunction believed to be a major patent problem

Tom Sanders in California

In a case before the US Supreme Court that could fundamentally change patent law, the US government has sided against a request by eBay to change an automatic injunction provision. 

The case seeks to overturn a prior ruling requiring a court to automatically issue a permanent injunction if they find that a party is infringing on a patent.

Advertisement

Current rules force a company that is found violating a patent to stop selling its disputed product or service, without paying attention to the circumstances.

The US government aired its objections to overturning the prior ruling in a so-called amicus curiae (literally 'friend of the court'), a filing in which groups that are not a party in the case can air their opinions.

A number of such briefs have been filed from companies including Research in Motion, General Electric and the Electronic Frontier Foundation (EFF). 

A jury in 2003 found eBay guilty of violating a patent owned by MercExchange and ordered the auction giant to pay $25m in damages. The court decided against imposing an injunction at the time, which was later overruled.

The eBay case is scheduled to be heard on 29 March before the Supreme Court.

The case has strong similarities to the RIM-NTP battle, in which the BlackBerry maker was forced to pay $612.5m to settle the lawsuit and purchase a licence for a patent that is likely to be invalidated.

"NTP was awarded $500m more than the jury thought it should get," Jason Schultz, a staff attorney with the EFF, told vnunet.com after the RIM settlement. "This is a clear example of what is wrong with the patent system." 

In the RIM case the injunction provision would have forced the company to suspend its service in North America. The eBay case could force the auction website to stop offering its 'Buy it now' feature.

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Tags:

Do you agree?

Related whitepapers

Related jobs

Most watched

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

Xperia X1

Video Review: Sony Ericsson Xperia X1

First Looks Editor Ian Williams gets hands on with the Sony Ericsson Xperia X1

IT white papers

Search white papers

Top categories

Poll

Poll: Summer smartphones

Poll: Summer smartphones

Which smartphone will you be taking to the beach this summer?

View poll results

Advertisement

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Spotlight

iPhone

Video Review: iPhone 3GS

We put Apple's latest iPhone through its paces

old computer

Government honours veterans of Bletchley Park at last

Surviving veterans of the code-breaking facility to receive badge of...

Motorola MC55 Enterprise Digital Assistant

Review: Motorola MC55 Enterprise Digital Assistant

A rugged Windows Mobile device for mobile workers

BT

BT promises 1.5m fibre connections by summer 2010

Telco begins major rollout in 69 locations across the UK

Primary Navigation