July 31, 2007

A Troll Gets A Smackdown [9:07 am]

And a judge explores a way to get around nonsense “business method patents:” Judge Permits eBay’s ‘Buy It Now’ Feature

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.

In his ruling, Judge Friedman said the company was not irreparably harmed because it continued to make money from its patents, either by licensing them outright or by threatening litigation against those it believed infringed upon them.

“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.

EFF’s earlier tracking of this case

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