San Jose, CA, March 29, 2005 - The U.S. Patent and Trademark Office has initially revoked in its entirety the consignment fixed price patent which underlies the $25 million judgment MercExchange obtained against eBay (Nasdaq: EBAY) in 2003, and which was recently affirmed by the US Court of Appeals for the Federal Circuit. In response to eBay's March 2004 request, the Patent Office reexamined that patent and has now initially rejected all of its claims, finding them to be "obvious" or otherwise unpatentable. MercExchange will have an opportunity to respond to the rejections, but the Patent Office's rulings could result in modification or permanent revocation of the patents. In February 2005, the Patent Office similarly rejected all claims of MercExchange's 051 patent, which relates to online consignment auctions.
The latest Patent Office decision could have an impact on upcoming District Court actions in this matter. "The Patent Office rulings have put a major cloud over MercExchanges's key patents," according to eBay Vice President of Intellectual Property, Jay Monahan. "eBay has maintained all along that the patents are not valid, and the Patent Office seems to agree," said Monahan.
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Contact:
Hani Durzy
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