eBay has agreed to settle a patent dispute with MercExchange. The online auction company told investors Thursday it would buy MercExchange's patents and MercExchange would dismiss all claims and appeals regarding a lawsuit it filed seven years ago.

"We're pleased to have been able to reach a settlement with MercExchange," Mike Jacobson, eBay senior VP and general counsel, said in a prepared statement. "In addition to resolving the litigation, this settlement gives us access to additional intellectual property that will help improve and further secure our marketplaces."

MercExchange claimed credit for eBay's fixed price auction options through eBay's "Buy It Now" feature, saying the online auction infringed on three of its patents. According to records from the U.S. Patent and Trademark Office, MercExchange filed for the patents in 1995, 1999, and 2001.

eBay tried to fight a judgment that would have cost the company about $30 million. The case went up and back down the U.S. court system. In December of 2007, a U.S. District Court ruling concluded in December that the court lacked authority to consider eBay's motion for summary judgment.

eBay claimed then that it did not infringe on MercExchange's '265 patents and that it owed no damages.

eBay said it will buy three patents, related technology and inventions, as well as a license to a search patent portfolio that is separate from the lawsuit.

The companies did not disclose other settlement terms, which eBay said are confidential. eBay said the settlement should not affect its 2007 results or 2008 financial guidance from January's fourth quarter earnings release.

The law firm of Broach & Stulberg LLP said the U.S. District Court denied Altria Group Inc.'s (MO) motions to dismiss an age discrimination and retaliation lawsuit brought by a former Swiss-based employee against Altria and Philip Morris International Inc.

The motions sought to dismiss the claims on the ground that the U.S. court lacked subject matter jurisdiction because the plaintiff, D'Arcy Quinn, was employed by a "foreign" employer not subject to the U.S. Age Discrimination in Employment Act.

Judge Laura Taylor Swain ruled that Altria "failed to raise a meritorious issue as to lack of subject matter jurisdiction."

The suit alleges that firing, hirings and promotions within Philip Morris illegally considered ages of candidates and employees.

The suit was filed in October in the U.S. District Court for the Southern district of New York on behalf Quinn, a former Philip Morris brand integrity director who served as in-house counsel for international anti-counterfeiting and anti-smuggling matters.

An Altria spokesman wasn't immediately available for comment.

The California Air Resources Board had sought to implement stricter air pollution controls within 24 miles of the state's coastline. The rules would require ships to use fuel in their auxiliary engines that emits lower levels of sulphur oxide, nitrogen oxide and particulate matter.

But the 9th U.S. Circuit Court of Appeal reinstated a lower court's injunction barring the state from enforcing its Marine Vessel Rules, finding that the Clean Air Act preempts them.

Big-time lawyers are pros at waiting for judges' tough decisions, but yesterday afternoon at Nixon Peabody in the District, some may have posted fewer billable hours until results of the firm's 19th annual cook-off were handed down.

A former partner in the New York office of Dorsey & Whitney is suing the Minneapolis-based law firm, claiming gender discrimination and violations of the whistleblower act, among other things.

Hennepin County District Court Judge Gary Larson heard an hour of arguments Tuesday on the Dorsey firm's motion to dismiss Kristan Peters' suit.

Peters began working as a Dorsey partner in January 2007 and left on June 23. At the core of the case is her handling of a trade secrets dispute on behalf of Wolters Kluwer Financial Services in New York. The matter drew media attention in trade publications, largely because of U.S. District Court Judge Harold Baer Jr.'s 129-page opinion criticizing Peters' behavior.

According to R. Scott Davies of Briggs and Morgan, who is representing Dorsey, Baier scolded Peters 22 times for her handling of the case. Davies said Peters played fast and loose with the litigation, lied to the court and misrepresented circumstances to the firm's partners.

Peters' lawyer James Kaster countered that the judge's behavior, not Peters', was unusual. The behavior Baer disliked -- such as scheduling a 7-hour deposition over two days and refusing to give bathroom breaks -- is not unusual, Kaster said.