Court upholds Microsoft loss and orders more investigation into eBay false advertising claims
In
December of 2009, A Federal Appeals court upheld a ruling against
Microsoft in a long running patent battle between the software giant
and a small Canadian firm called i4i. At the heart of the dispute was
a feature in Microsoft's massively popular and profitable Office
software.
Along with upholding the initial ruling against
Microsoft and the $290 million judgment against the company, the
appeals court also issued
an injunction against the sale of Word and Office 2007
versions that were found to be infringing the i4i patent. Microsoft
appealed the ruling to the U.S. Court of Appeals for the Federal
Circuit asking for a rehearing by all 11 judges. The court
denied Microsoft's request today reports Reuters.
Microsoft
isn’t done fighting the injunction yet though. Microsoft could
take the case to the U.S. Supreme Court or make a new request to the
Appeals Court for another hearing on the ruling. Since the ruling was
issued, Microsoft has removed the feature at the heart of the case
from current versions of Office and Word.
I4i Chairman Loudon
Owen said, "This has been a long and arduous process, but this
decision is a powerful reinforcement of the message that smaller
enterprises and inventors who own intellectual property can and will
be protected."
Microsoft issued its own statement saying,
"We're disappointed with the decision. We continue to believe
there are important matters of patent law that still need to be
properly addressed, and we are considering our options for going
forward."
EBay has found itself in court as well in a
case that was originally filed by Tiffany & Co. The original suit
alleged that eBay was ignoring the sale of counterfeit Tiffany
jewelry on its website. EBay won
the original case with the presiding judge stating, "It
is the trademark owner's burden to police its mark and companies like
eBay cannot be held liable for trademark infringement based solely on
their generalized knowledge that trademark infringement might be
occurring on their websites."
Tiffany appealed the
decision and the U.S. appeals court has again ruled
in favor of eBay in the case. However, the court did order
that more review of Tiffany's claims of false advertising be
conducted. EBay maintains that it spends millions to track down, stop
counterfeiters, and remove listings for goods that violate rules or
law. Tiffany has stated that it will consider appealing the ruling to
the U.S. Supreme court. The jewelry company stated that the ruling
"leaves in place a prior ruling which allows eBay to profit from
counterfeit sales."
The appeals court opinion on the
ruling read, "It is true that eBay did not itself sell
counterfeit Tiffany goods; only the fraudulent vendors did, and that
is in part why we conclude that eBay did not infringe Tiffany's mark.
But eBay did affirmatively advertise the goods sold through its site
as Tiffany merchandise."
An accusation of false
advertising was leveled against eBay by Tiffany because the eBay
website advertised Tiffany goods, but many of them were counterfeit
items. This decision by the appeals court was in contradiction to the
original ruling of the district court that found eBay's ads were not
likely to confuse customers.
"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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