News

More Trial Documents Concerning MercExchange L.L.C. v. eBay, Inc. et. al.

Civil Action No. 2:01-CV-736
U.S. District Court for the Eastern District of Virginia

Ruling Prompts EBay To Revise Earnings
By Anitha Reddy
Washington Post Staff Writer
Tuesday, August 12, 2003; Page E05
EBay Inc. revised its second-quarter earnings downward yesterday to reflect a $30 million charge, a change that the company said was necessary because of last week's court judgment that said eBay owes a Virginia inventor $29.5 million for patent infringement.

The online auction service now says it earned $91.9 million (28 cents per share). On July 24, the company had reported earnings of $109.7 million (33 cents). The company completed a 2-for-1 stock split since its initial earnings announcement, so second-quarter earnings per share are now 14 cents.
EBay had to take the charge because it must post a $29.5 million bond while it appeals the case, said eBay spokesman Kevin Pursglove.

EBay Told to Pay $29.5 Million in Patent Case
By Joshua Partlow
Washington Post Staff Writer
Thursday, August 7, 2003; Page E05
A federal judge yesterday ordered eBay Inc. to pay a Virginia inventor $29.5 million, upholding a jury's verdict that said the online auction giant infringed a patent on the process of buying goods at fixed prices online.

U.S. Judge Trims Amount Ebay to Pay in Patent Case
Reuters, 08.06.03, 8:08 PM ET
By Andrea Orr
SAN FRANCISCO, Aug 6

U.S. District Court Judge Jerome Friedman said in a written opinion that there was "no dispute" that the online auction site Ebay had infringed the patent in question, which covers the way people make online bids backed by credit cards. He also said there was sufficient evidence to suggest the company had done so willfully.

eBay Ordered to Pay $35M in Patent Claim
By Michael Singer, May 27, 2003

The jury reached its unanimous verdict Tuesday in a civil court in the U.S. District Court for the Eastern District of Virginia in Norfolk, saying eBay "willfully and directly" infringed on all counts of two of MercExchange's patents. The judge must still approve the decision and may tack on even more damages.
San Jose, Calif.-based eBay spokesperson Kevin Pursglove summed it up in one word: "Disappointed."
"Our next move will be to wait for the judge's timetable for post trial motions where we will ask the court to set aside the verdict," Pursglove told internetnews.com. "That means that he could order a new trial, and depending on how we present our case, we could argue a legal point evidence that no reasonable jury could have arrived at this decision."

From FindLaw: Special Verdict Form

EBay May Trade Potential Lawsuit Win For Settlement
Phyllis Berman, 05.14.03,
Representing eBay is Cooley Goddard, one of the largest and most prestigious law firms in San Francisco with more than 40 patent lawyers on its staff. Despite Cooley Goddard's strenuous efforts to get the case moved to Northern California, the David vs. Goliath drama is taking place in Virginia.
Cooley Goddard staff took over the tenth floor of the Norfolk Sheraton Waterside Hotel, just a few blocks from the courthouse, nearly a month ago. By one bellhop's count there are at least 40 in the party. Not all are attorneys and very few of them actually appear in court. The concierge lounge on the floor has been retooled as a war room.

An eBay spokesman says the company is "very confident. We are happy to have this case before a judge and jury."

AUTOTRADER.COM LICENSES MERCEXCHANGE PATENTS FOR AUCTION-STYLE LISTINGS
Auction-style selling tool has clear advantages over existing sites

January 16, 2003

“We chose to obtain a license for our Auction-Style product because we respect the MercExchange patents,” said Chip Perry, president and chief executive officer of AutoTrader.com. “We are creating a product that will fuel our growth in auction-style car buying and selling, and that will further innovate in the dynamically-priced classified advertising space.”

“We are very pleased to have AutoTrader.com as a licensee,” said Thomas Woolston, President of MercExchange and inventor of its patented technologies. “AutoTrader.com’s online business model has a tremendous opportunity to leverage their current base of listings and customers and allow Auction-Style Listings to quickly become a core product offering on their site.”

eBay Patent Lawsuit Is On Way To A Norfolk Trial

The Virginian-Pilot: FROM WIRE REPORTS, Associated Press
October 29, 2002

"My view is that the court has now cleared this case for trial," said Scott Robertson, an attorney with Hunton & Williams who is representing MercExchange

eBay Patent Case Moves Closer To Trial

CNET.com
October 25, 2002

"The ruling puts eBay in the position of having to argue that it is not a trusted network."

Patent Dispute Threatens eBay

CNN.com
September 29, 2002

"I was there with the technical know-how and ability to see it first," he says bluntly. "We won't be bullied."


Could Lawsuit Change Ebay Forever?

TechTV.com: By Gary Nurenberg
September 22, 2002

"Inventor claims popular online auctioneer is infringing on his intellectual property."


Patent Suit Could Sting eBay

CNET News.com: By Troy Wolverton
September 5, 2002

"eBay, one of the biggest success stories on the Web, is being threatened with a patent infringement lawsuit that could force it to modify its winning auction format."


Forbes.com: Eeks For EBay

Forbes.com: Phyllis Berman
August 16th, 2002

"Woolston has, probably, an even chance. Once the trial begins, the jury may be interested in seeing an e-mail sent by eBay lawyers..."


The Washington Post October 2, 2001; Page E2

MercExchange of Great Falls filed a patent-infringement suit against the Internet auction company eBay. MercExchange said its principal, Thomas G. Woolston, is the inventor on three patents issued in 2000 and 2001 for using Internet auctions and searching markets for items to buy. EBay denied the allegations.


EBay Accused of Infringing Internet Auction Patents

Bloomberg: By Susan Decker
October 1st, 2001


Harvard Law School

MercExchange’s U.S. Patent No. 5,845,265 is required reading at Harvard Law School. (March 10, 2000).


Priceline.com

Priceline.com Patent Challenged. (February 4, 1999).

Priceline.com faces a challenge to its key patent from an entrepreneur who claims that he developed the technology first. (January 13, 1999).

By Duvall M. 'Priceline.com Faces Patent Battle' Inter@ctive Week.