AT&T using A.C.A.C.I.A. tactics against Paypal and E-Bay
http://money.cnn.com/2003/11/20/tech...ex.htm?cnn=yes
AT&T sues eBay, PayPal
Telecom says online auction site and payment service infringe on a patent it filed in 1994.
November 20, 2003: 1:59 PM EST
PHILADELPHIA (Reuters) - Long-distance telephone company AT&T Corp. said Thursday it filed a lawsuit against PayPal Inc. and eBay Inc., saying their online payment systems violated its patent on secure Internet payments.
AT&T (T: down $0.07 to $19.16, Research, Estimates) said its patent covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet.
The use of an intermediary ensures that one party will not have to disclose sensitive information, such as a credit card number or bank account number, directly to the other party in a deal.
In the lawsuit, which was filed in federal district court in Delaware, AT&T said it notified the companies more than a year ago that they were using technology patented in 1994.
AT&T offered to license the patented technology to each of the companies, but it said eBay (EBAY: down $0.26 to $52.78, Research, Estimates) and its PayPal unit have refused to pay for a license. A copy of the lawsuit was obtained by Reuters.
AT&T sues eBay, PayPal
Telecom says online auction site and payment service infringe on a patent it filed in 1994.
November 20, 2003: 1:59 PM EST
PHILADELPHIA (Reuters) - Long-distance telephone company AT&T Corp. said Thursday it filed a lawsuit against PayPal Inc. and eBay Inc., saying their online payment systems violated its patent on secure Internet payments.
AT&T (T: down $0.07 to $19.16, Research, Estimates) said its patent covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet.
The use of an intermediary ensures that one party will not have to disclose sensitive information, such as a credit card number or bank account number, directly to the other party in a deal.
In the lawsuit, which was filed in federal district court in Delaware, AT&T said it notified the companies more than a year ago that they were using technology patented in 1994.
AT&T offered to license the patented technology to each of the companies, but it said eBay (EBAY: down $0.26 to $52.78, Research, Estimates) and its PayPal unit have refused to pay for a license. A copy of the lawsuit was obtained by Reuters.
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