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Federal Circuit Decision Leaves eBay's Hands Tied

Law360 (March 16, 2005, 12:00 AM EST) -- The U.S. Court of Appeals for the Federal Circuit has decided largely in favor of MercExchange in its patent infringement lawsuit against eBay, a decision that is likely to force eBay to settle the case or face a permanent injunction that could shut down its servers.

The court affirmed one of MercExchange's patents, invalidated a second, and reinstituted the most controversial patent, which had been struck down by an earlier court, over the process of conducting online auctions.

In a decision that surprised many observers, the...
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