San Jose-Based eBay Settles Patent Suit with MercExchange

San Jose, Calif. -- Following nearly seven years of litigation, San Jose-based eBay on Thursday agreed to settle a patent infringement suit brought by Virginia-based MercExchange related to technology behind the online auction giant's "Buy It Now" feature. Financial terms of the settlement were not disclosed, though eBay said that it won't affect either its 2007 results or its 2008 financial guidance. Under the deal, eBay will purchase all three patents involved in the lawsuit, as well as some additional related technology and a license to another search-related patent portfolio. "In addition to resolving the litigation, this settlement gives us access to additional intellectual property that will help improve and further secure our marketplaces," said Mike Jacobson, eBay's senior vice president and general counsel. In December, the U.S. District Court in Norfolk, Va. awarded MercExchange damages of $30 million as a result of the suit, which originally was filed in September 2001. eBay at the time said that it would appeal that ruling.
http://biz.yahoo.com/bw/080228/20080228005871.html?.v=1
http://www.ebay.com