eBay sued for $3.8 billion over PayPal patents

In a lawsuit filed earlier today, eBay Inc. is being sued for at least $3.8 billion by XPRT Ventures LLC. The lawsuit accuses eBay of infringing on six patents to develop online payment systems such as PayPal.

According to Reuters, the complaint filed today in the U.S. district count in Delaware claims that eBay used confidential and proprietary information from a patent filed by XPRT's own application. XPRT claims that eBay “stole” ideas from them when filing for a patent and when rolling out several features in its payment system.

The lawsuit, filed by XPRT, is seeking $3.8 billion for damages including monetary, treble damages resulting from eBay's alleged "willful and malicious conduct," punitive damages and other remedies.

The worlds largest online auction website, eBay, uses PayPal to help make quick, safe and secure online transactions. eBay purchased PayPal back in 2002 for an estimated $1.5 billion.

Image Credit: Liew Cheon Fong (Flickr)

Report a problem with article
Previous Story

Windows Phone 7 news from WPC10

Next Story

Google the new Microsoft; Apple insists on being Apple

33 Comments

Commenting is disabled on this article.

ONE TRILLION DOLLARS!
*raises pinky to corner of mouth*

still waiting on the inventor of the transistor/wheel to pull a stunt like this. he would be due some phat royalties retroactively...something on the order of 500 million royalty units per CPU/SoC/IC

Is it just me who thinks that anything less than $1B is not enough in compensation?

BTW, I was being sarcastic!

the small companies just abuse the district of delaware court too much because they are lenient on siding with the small company on suing the big companies. they should really put a time limit on when they can sue over the alleged violated patent(s); if you knew about it, researched into it, you can sue within a year or two!

Yadro said,
38 billion $?
Whatever those guys smoked must have been really good.

I think what you smoked has resulted in poor vision - you missed the point - "."

3.8 not 38

It's good to see people making a move at eBay, even if it's a lawsuit. I'm sick of their constant final value fee raises - it's extortionate here in the UK, and they can keep on raising it because there's no real competition. I sold something there last month for £82 - they had £9 in final value fee's, that's not including the listing and Paypal charges which would have made it around £13 in total, £19 when you account the postage!
The site used to be a place where you could get rid of bits-and-bobs and make a few quid in the process, but now that they try to appeal to businesses, certain items can be had for chips.... so now you expect even less. It's a joke.

Agreed, i'm sick of ebay their price model is disgusting... there should at least be some sort if discount if you use eBay and then PayPal to handle the money transfer.

Listing fees, final fee, paypal fee, fee to transfer to bank account (if its under £50). As you have mentioned, it all ads up and makes it pointless selling stuff.

I wont use it unless i have no choice.

Mambo Boy said,
It's good to see people making a move at eBay, even if it's a lawsuit. I'm sick of their constant final value fee raises - it's extortionate here in the UK, and they can keep on raising it because there's no real competition. I sold something there last month for £82 - they had £9 in final value fee's, that's not including the listing and Paypal charges which would have made it around £13 in total, £19 when you account the postage!
The site used to be a place where you could get rid of bits-and-bobs and make a few quid in the process, but now that they try to appeal to businesses, certain items can be had for chips.... so now you expect even less. It's a joke.

Grip about that if you want, but if eBay looses this lawsuit, those fees will only climb. As you said there is a lack of competition, so the solution is more competition, not a lawsuit against eBay

Mambo Boy said,
It's good to see people making a move at eBay, even if it's a lawsuit. I'm sick of their constant final value fee raises - it's extortionate here in the UK, and they can keep on raising it because there's no real competition. I sold something there last month for £82 - they had £9 in final value fee's, that's not including the listing and Paypal charges which would have made it around £13 in total, £19 when you account the postage!
The site used to be a place where you could get rid of bits-and-bobs and make a few quid in the process, but now that they try to appeal to businesses, certain items can be had for chips.... so now you expect even less. It's a joke.

You COMPLETELY missed the point.

Uplift said,
Agreed, i'm sick of ebay their price model is disgusting... there should at least be some sort if discount if you use eBay and then PayPal to handle the money transfer.

Listing fees, final fee, paypal fee, fee to transfer to bank account (if its under £50). As you have mentioned, it all ads up and makes it pointless selling stuff.

I wont use it unless i have no choice.

I have to agree with you, we get billed twice from the same sale & company, how is that right?

Uplift said,
Agreed, i'm sick of ebay their price model is disgusting... there should at least be some sort if discount if you use eBay and then PayPal to handle the money transfer.

Listing fees, final fee, paypal fee, fee to transfer to bank account (if its under £50). As you have mentioned, it all ads up and makes it pointless selling stuff.

I wont use it unless i have no choice.


ebay is a buyers market plain and simple. and they are just charging fees left and right because they have no competition, and I don't blame them, thats how you make lots of money. they charge a seller fee and then a paypal fee, I sold a htc hero a year ago for $440, $40 total in fees!

Ridlas said,
That sucks, I love ebay.

I think they're just trying to earn a quick buck.

+1. Companies who abuse patents. This is why patents need to die and be nulled and void.

ZekeComa said,

+1. Companies who abuse patents. This is why patents need to die and be nulled and void.

The patent system may be broke, but without the ability to "protect" technology there is no incentive to develop - as someone will just steal it instantly without the need to recoup development costs.

It the same reason pharmaceutical companies don't care for the effects of pre-existing medicine. No-one wants to pay a billion dollars to develop something that won't make money. The reason so few a researching things like fusion - it is fundamentally flawed because the time to develop it even if it is possible, will probably out see a single persons lifetime (or at least any person who has the financial resource to invest in such schemes), and so no-one will make money from it. People want a return on there money in a few years, not 100 years.

Ridlas said,
That sucks, I love ebay.

I think they're just trying to earn a quick buck.

That's the name of the game now a days. Earn it as quickly and easily as possible, at someone else's expense.

lt8480 said,

The patent system may be broke, but without the ability to "protect" technology there is no incentive to develop - as someone will just steal it instantly without the need to recoup development costs.

It the same reason pharmaceutical companies don't care for the effects of pre-existing medicine. No-one wants to pay a billion dollars to develop something that won't make money. The reason so few a researching things like fusion - it is fundamentally flawed because the time to develop it even if it is possible, will probably out see a single persons lifetime (or at least any person who has the financial resource to invest in such schemes), and so no-one will make money from it. People want a return on there money in a few years, not 100 years.

Patents are abused just to make money. They cause developers to not be able to build on existing technology. You cannot even make a clone of something without being screwed over by the patent. It shouldn't exist at least in the software world it shouldn't. But then again I think all patents are just a bunch of crap.

I bet XPRT Ventures LLC is in some financial troubles and now after all this time decided to sue. I would love to see how vague these patents are from that company...