eBay has just forked out some of its own hard-earned cash, buying three patents due to their ongoing lawsuit with MercExchange over the Buy It Now service.

MercExchange claims eBay was infringing on their patents, and filed a lawsuit against the company in September 2001, which has now been dropped reportedly.

“We’re pleased to have been able to reach a settlement with MercExchange. In addition to resolving the litigation, this settlement…