TransAuction LLC vs. Bidz.com Inc. et al

Plaintiff TransAuction is a Texas limited liability company based in Frisco and claims to own the rights to U.S. Patent No. 7,343,339 issued March 11, 2008, for an Electronic Bond and Guaranty Process and Business Method.

The suit alleges that defendants Bidz.com Inc., eBay Inc., Overstock.com Inc., Ubid.com Holdings Inc. and Winecommune.com LLC have infringed the '339 Patent.

TransAuction claims it has been damaged by defendants' infringing conduct which entitles it to compensation no less than a reasonable royalty.

In addition, the suit alleges that inventor Shelton E. Harrison corresponded with representatives from eBay concerning eBay's potential interest in purchasing the patent application which was later issued as the '339 Patent.

"Thus, upon information and belief, defendant eBay is aware of the '339 Patent, has knowledge of the infringing nature of its activities, has nevertheless continued its infringing activities and its infringing activities have been and continue to be willful," the suit states.

TransAuction is seeking compensatory damages, treble damages, costs, interest, attorneys' fees and other just and proper relief.

Eric Albritton of the Albritton Law Firm in Longview is lead counsel for the plaintiff, with T. John Ward Jr. of Longview and Edward Casto Jr. of Fort Worth.

The case has been assigned to U.S. District Judge David Folsom.

Case No. 2:08-cv-232-DF