The US Supreme Court on Wednesday plans to hear arguments in a patent case involving online auctioneer eBay that is part of a wider struggle between the software and pharmaceutical industries over the future of the US patent system.
Lawyers for eBay and small ecommerce company MercExchange will square off over whether eBay should be barred from using its popular “Buy it Now” feature, which infringes on two MercExchange patents.
The case is being closely watched to see if the high court will scale back the right of patent holders to get an injunction barring infringers from using their technologies.
Software companies complain they can be held to ransom by owners of questionable patents while drug makers oppose any weakening of patent rights, which they say would chill their investment in new medicines.
Patent experts said that, depending on how the high court rules, the case could have a profound impact on the way the courts treat intellectual property in the US.
Steve Maebius, a patent lawyer with the firm Foley & Lardner, said: “Any time we talk about altering injunctions we really are talking about altering the fundamental balance of power.”

Posted: 03|28|06 at 9:11 am. Filed under: Auction News.