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EBay Makes Enemy Over Web Pay Patents

Law360 (May 7, 2007, 12:00 AM EDT) -- Online auction site eBay Inc. has been hit with a lawsuit over security patents it allegedly infringes through its Web payment subsidiary PayPal Inc.

Netcraft Corp. filed a lawsuit Thursday in the U.S. District Court for the Western District of Wisconsin, claiming that eBay and PayPal infringe two patents for Internet billing methods.

Between 2000 and 2002, Netcraft and eBay discussed entering a partnership regarding the patents, but eBay decided not to work with Netcraft, said William R. Woodford, an attorney for Netcraft.

“Since they are...
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