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To: common_pundit
Why shouldn't MercExchange be entitled to protect their idea? Evidence seems to show that they wanted to license it to Ebay anyway. Ebay probably shrugged this tiny company off and dared them to file infringement suit. Now Ebay's tactic has come home to roost, albeit for a rather small amount of money ($5.5 million)

Is there any evidence that eBay actually received any benefit from the former company's patent, rather than having developed the ideas independently?

In theory, the patent system was designed so that people would patent their ideas in useful fashion and, as a reward for doing so, receive temporary exclusive rights to them. In practice, I think the primary effect of publishing patents is to prevent any sort of "independent derivation" defense, even in cases where it would and should be applicable.

Although there are times when it can be useful to look through expired patents to see how earlier products work (e.g. Activision's Pitfall II cartridge for the Atari 2600), I don't think very many people look through current patents for new ideas. While I don't know about this particular case, it's not uncommon for some companies to patent ideas they have no idea how to do anything useful with but which might become obvious due to technological developments. When the ideas become obvious, the "inventor" then gets to go after anyone who independenly comes up with the same idea.

35 posted on 03/31/2006 4:57:58 PM PST by supercat (Sony delenda est.)
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To: supercat
I think you are mistaken.

Company lawyers worth their salt and investors doing due diligence always have patent searches done to find out if anything is even close. After all why snooker several thousand investors to pony up millions only to be taken to court by them when you are sued successfully for infringement.

face it somebody at E-bay did not do their homework and don't think that some investors are now asking that very question.

Lurking'
36 posted on 03/31/2006 7:29:32 PM PST by LurkingSince'98
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