eBay 1999 Annual Report Download - page 22

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relief, restitution and legal fees. Discovery has commenced. The Company believes it has meritorious defenses
to this lawsuit and intends to defend itself vigorously. However, even if successful, this defense could be costly
and, if the Company were to lose this lawsuit, its business could be harmed.
On December 10, 1999, the Company sued Bidder’s Edge, Inc. in the United States District court for the
Northern District of California alleging trespass, unfair competition, violation of the computer fraud and abuse
act, misappropriation, false advertising, trademark dilution, injury to business reputation, interference with
prospective economic advantage, and unjust enrichment. On February 7, 2000, Bidder’s Edge denied these claims
and counterclaimed against the Company alleging that the Company has violated the antitrust laws by
monopolizing or attempting to monopolize a market, the Company is competing unfairly, and that the Company
interfered with their contract with eBay magazine. Bidder’s Edge is seeking treble damages, an injunction and
its fees and costs. Expedited discovery in this case has commenced. The Company intends to prosecute its claims
and defend itself against Bidder’s Edge counterclaims vigorously. However, this lawsuit could be costly and the
business could be harmed if the Company were to lose.
From time to time, the Company is involved in disputes which arise in the ordinary course of business. The
Company believes that the ultimate resolution of these disputes will not have a material adverse impact on its
financial position or results of operations.
Item 4: Submission of Matters to a Vote of Security Holders
There were no submissions of matters to a vote of security holders during the fourth quarter ended
December 31, 1999.
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