Tuesday 29 November 2005

Supreme Court Bids To Hear eBay Patent Case

Faces Tough Competition For Appeal; Budget May Hinder Ability To Meet Reserve Price

The Supreme Court signaled yesterday that they are entering the bidding to hear the appeal of a patent violation case against the online auction house, eBay.

A Federal Court judge refused to issue an injunction against eBay, on behalf of MercExchange, a small company in Great Falls, Virginia, after MercExchange won a 2003 case in which eBay was shown to have violated three patents and was awarded more than $25-Million in damages.

In refusing the injunction, Judge Jerome B. Friedman of Federal District Court, noted that MercExchange "exists solely to license its patents or sue to enforce its patents, and not to develop or commercialize them".

The United States Court of Appeals for the Federal Circuit, a specialized court here that hears all appeals in patent cases, overturned the district court's decision this year and ruled that MercExchange was entitled to the injunction it sought.

In an unusual move, the appeals court, while granting a stay of its decision, ordered that the case be "put to bid" on eBay.

The Supreme Court faces stiff competition to win the bid to hear the case.

With a Reserve Price of $25-Million, there are presently seven bidders; three from China, two from Europe and two here in the United States.

One Chinese bidder reached by The Garlic, "PekingBob" said that his small village is attempting to enter the global economy and "getting this case would put us on the map".

Another bidder, "RomanianLoveChild" fronts a consortium looking to land the case for the European Union.

In the U.S. "PhiladelphiaDad", a venture capital banker, said that his firm wants the eBay case "as a means to bring the Federal Government back to it's true home, here in Philadelphia".

The other U.S. bidder, identified only as "Anonymous" refused to state any information about themselves but did indicate that, if they win the bid, they plan to podcast the hearing live, generating revenue by charging a fee to view and selling advertising.

They say also that they are working with Apple to develop a program of matching testimony in the case with iTunes offerings in real-time and that can be downloaded during the podcast and run as an accompanying soundtrack to the proceedings.

A spokesperson for the U.S. Supreme Court admitted that yesterday's announcement was only "proforma"

"We haven't actually won the bidding yet," said the spokesperson, "but we do need to place it in the schedule, to hold the date. If we don't win the bid, we simply drop it from the posting".

With court interns monitoring the bidding, in shifts, 24/7, one of the factors facing the Supreme Court's effort to win the bidding for the case is the Reserve Price.

"We don't have unlimited funds", said the court's spokesperson. "We'd have to get special clearance from the Justice Department to keep pace with the bidding if it goes over a certain level".

The spokesperson also indicated that representatives of the court are in talks with CSPAN, the E Network and Court TV as to potential partnerships and investment in order to raise additional funds to compete for the case. Congress stands ready to pass an emergency resolution that would allow for the Supreme Court to take on a partner.

The spokesperson did admit that the high court has already rejected offers of investment from now-former Congressman Randall "Duke" Cunningham and lobbyist Jack Abramoff.

Citing his committment to enforcing the new Immigration policies, President Bush said that he'll do whatever is necessary, including "I'll suit up and patrol the borders, if that's what it takes ..."