eBay Plans To Appeal $30 Million Patent RulingeBay Plans To Appeal $30 Million Patent Ruling

eBay announced that it will challenge a U.S. District Court ruling that found the online auction site infringed on MercExchange patents.

The court in Norfolk, Virginia, ruled Tuesday that eBay intentionally infringed on MercExchange's '265 patent. MercExchange said the decision, based on an appeal of a jury's 2003 verdict in its favor, means it's entitled to a $30 million judgment.

eBay said it plans to appeal the decision, which was based on procedural grounds.

"In its ruling, the court concluded that it did not have the legal right to consider the merits of our arguments concerning the '265 patent, but rather was required to reject our motions based on the procedural posture of the case," eBay said in a statement. "We intend to appeal the court's ruling on the procedural issues and remain confident that after the appeal, the court will consider our arguments on their merits."

The company said that it is still awaiting a summary judgment concluding that the company's 2003 "design-around" stopped the infringement and no further damages are warranted.

"We remain pleased with other developments in this ongoing case, including the decision by the United States Court of Appeals to invalidate another patent in this case; the May 2006 unanimous Supreme Court decision in eBay's favor on MercExchange's request for an injunction; and the District Court's subsequent affirmation in September 2007 that no injunction is called for. We look forward to the opportunity to appeal yesterday's District Court ruling."

MercExchange President Thomas Woolston said the decision marked "an important milestone in our battle to defend our rights as a patent holder." He had harsh words for eBay, and said MercExchange will continue to pursue damages for post-trial infringement through fixed price, or "Buy It Now," sales. Woolston said those sales account for about 39% of eBay's total revenues.

"eBay was found to be a willful infringer of our patents over four and one-half years ago, and we are now proceeding to the conclusion of their expensive legal delays," he said in a prepared statement. "We look forward to returning to District Court to account for eBay's continuing post-trial infringement, and to completing our appeal of the denial of an injunction against eBay fixed price sales with the Court of Appeals for the Federal Circuit."