Court Ruling Could Drastically Change eBay

Court Ruling Could Drastically Change eBay


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Keith McCord ReportingThe U.S. Supreme Court is considering a case concerning the website eBay, specifically one of the features that many people use to purchase items on the site. Depending on which way the court goes, the ruling could affect individuals and businesses.

At least one Utah woman is watching the case very closely. From her home in Layton, Cindy Sorley runs an online business on the website eBay. She buys and sells needlework supplies-- books, patterns, fabrics and buttons.

Cindy Sorley, Owner, "Stitchery X-Press": "A lot of this stuff I buy at garage sales, or people quit stitching or quit doing needlework, so I just buy all over."

Then she'll sell them on her online store: "Stitchery X-Press". At any given time, she'll have 600-800 items listed.

Cindy Sorley, Owner, "Stitchery X-Press": "Every day I ship between 20 and 60 items. Sometimes that could be up to 80."

This little business keeps Cindy busy, but a case now before the nation's highest court could change all that. The U.S. Supreme Court takes on huge issues every year; this one is about a little button -- the "Buy It Now" button!

Click on it and customers can pay a fixed price, and not have to wait to see if they're the high bidder, which can take several days.

This case involves a patent lawyer named Tom Woolston, who says he was awarded a patent for the "Buy-it-Now" idea in the late 90's when he had a marketplace type website. The company failed and in 2000, eBay started using the feature. Woolston sued for patent infringement and won. A court ordered eBay to pay 35-million in damages.

He also wanted eBay to permanently stop using the "Buy it Now" feature, but the court wouldn't go along. On appeal, the case is now before the Supreme Court.

Cindy Sorley, Owner, "Stitchery X-Press": "If the Supreme Court were to shut it down and say, 'Hey, we're going to stop the Buy it Now Button in all aspects of eBay,' then it would shut down my store."

The justices will consider if a patent holder is entitled to damages even though the patent holder doesn't practice his own invention. A decision is expected this summer.

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