eBay's Business Model Patent Mess Returns
from the online-auction-patent-is-baaaaaaaack dept
In 2002, someone who claimed he came up with the idea for online auctions and patented it before eBay existed sued the company for patent infringement. As we pointed out at the time, this was exactly what patents were not supposed to do. Here's a case where different people came up with similar ideas. One actually did something with it and built a real company, while the other didn't do anything with it at all, other than run to the patent office. Yet, the company that did something gets sued. That discourages companies from actually innovating. The companies that really do something open themselves up to lawsuits. While a court later tossed out the online auction patent for being too vague, they did award the guy nearly $30 million for his patent on "direct buying" online (yes, he actually patented that). Both sides appealed, and the court has found that, not only did eBay violate the direct buy patent, but it's bringing back the online auction patent as well, saying a lower court needs to check that out again.
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Patents for the Little Guy
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