EBay Inc. said Thursday it has settled a long-running patent dispute over features on its Web site that allowed customers to purchase items without using the company's popular auction service.

The dispute with MercExchange LLC revolved around the "buy it now" feature used on eBay's site. The company was sued over the matter in 2001 and saw the case wind all the way to the U.S. Supreme Court, which issued a decision that resulted to changes in how patent owners can block use of their patents. See full story.

In a statement Thursday, eBay said it reached a settlement with MercExchange -- as patent holding firm -- to dismiss all claims under the lawsuit.

Under the terms of the settlement, eBay said it will buy three patents involved in the case as well as some additional technologies. Financial terms were not disclosed, though the company said the settlement will not affect its results or outlook for 2008.