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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.

Now, why does this not surprise me?

No wonder the US has more lawyers in collage than any other profession.

But if At&T win what will happen to all the other payment systems?

The US goverment has got to sort out the US Patent Office, it's getting a joke over there. Peple are patenting ideas and methods. How can you patent not giving a piece of information to the other person in the deal? It's just security.

USPTO changes will drag on forever unless everyone complains... so all US citizens... email all of your congressman... even email the state guys as they can and will bring their pressure up too. This costs states tax moneys which they don't need to be losing... so I'm sure they will do all they can as well.

If AT&T was using Acacia tactics, they would be suing each person who was doing a credit card transaction, rather than PayPal.

Just imagine... licensing to millions and millions of contributory infringers instead of just 1 company... that's the Acacia way

:1orglaugh :Graucho

Fight the Insanity!