In lawsuit, XPRT says it gave eBay the idea to buy PayPal

The company is suing eBay for $3.8 billion for alleged patent infringement

A company called XPRT Ventures has sued eBay for patent infringement, asking the court for US$3.8 billion in damages.

XPRT claims that by pitching its technology to eBay, it gave the auction site the idea that buying PayPal could significantly improve its business by reducing costs associated with other forms of payment.

XPRT says the inventor of one of its patents, covering a way to streamline e-commerce transactions, contacted eBay in 2001 and later spoke with an eBay lawyer to gauge the company's interest in using the patent-pending technology.

The inventor failed to get a response to a follow-up letter asking the lawyer if eBay was interested in the technology. Shortly thereafter, eBay announced its intention to buy PayPal.

"EBay's familiarity with the confidential information provided by the Inventors allowed eBay to recognize the advantages it would realize by acquiring, modifying and integrating PayPal's payment platform with eBay's own e-commerce payment platform," the lawsuit, filed in the U.S. District Court for the District of Delaware, reads. "EBay also knew or should have known that such modification and combination would violate Inventors' patent application claims should they issue as patents."

EBay has benefited "enormously" from the use of the ideas in the patents, the suit claims.

The lawsuit says eBay later filed its own patent applications based on technologies that PayPal uses. Those applications use technology in the XPRT patents, yet eBay did not initially cite those patents in the application, the suit alleges. Later, eBay lawyers did add citations of the patents. The U.S. Patent and Trademark Office has rejected eBay's application four times, citing XPRT's patents, the suit says.

XPRT alleges that eBay and related companies including PayPal, Bill Me Later, Shopping.com and StubHub all knowingly infringe six of its patents. It also charges eBay with the misappropriation of trade secrets. It is asking for a minimum award of $3.8 billion in damages.

In a statement, eBay said it is still reviewing the complaint. "We believe it is without merit, and intend to defend ourselves vigorously," it said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags legalebaypaypalintellectual propertypatent

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?