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.
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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 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.
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