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AT&T sues Ebay, Paypal. All your patents are belong to us

Daniel Fleshbourne   on 21 November 2003 - 10:12 · 49 comments & 4176 views

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TELEPHONE GIANT AT&T has filed a legal action against Ebay and Paypal claiming that the auction giant is breaching patents it owns. According to the law suit, filed in a US federal court yesterday, both Ebay and Paypal technology breaches an AT&T patent for transactions using trusted intermediaries processes payments over the Internet. The US giant wants Ebay and Paypal to compensate it for using what it claims is its technology.

The patent in question is 5,329,589, which describes "Mediation of Transactions by a Communication System". What this patent describes, essentially, is the sale of goods using a credit card or a bank account number through a third party, which completes the transaction without passing on customer-sensitive information.

According to the law suit, AT&T had approached Ebay/Paypal to discuss the alleged infraction, but the firm wouldn't stump up the cash. One inventor of the 589 patent, Alexander Fraser, was a chief scientist at AT&T, while another, Roy Weber, worked for AT&T Bell Labs. The third, Carlos Perea, was a manager of AT&T's business services.

News source: The Inq


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Post a comment · Send to friend Comments · There are 49 additional comments
#1 kxgard3 on 21 Nov 2003 - 10:16
Go figure AT&T would hold a patent on something like that, those punks at bell labs

(yes I know bell labs is now Lucent and has nothing to do with AT&T)
#2 xStainDx on 21 Nov 2003 - 10:21
lmao
(1 reply) #3 dewy on 21 Nov 2003 - 10:22
Naughty EBAY
#3.1 mipra on 22 Nov 2003 - 06:52
cant get enough of EBAY
#4 BananaMan on 21 Nov 2003 - 10:45
I direct you all to the latest penny arcade: http://www.penny-arcade.com/view.php3?date=2003-11-19
I can't believe they actually expect to successfully get money from Ebay and Paypal for employing an escrow service. This is an exaggeration, but it's almost as absurd as patenting a letter of the alphabet. AT&T are going to hell.
(1 reply) #5 Beast_4thHM on 21 Nov 2003 - 11:44
so let me understand... AT&T have a patent on internet commerce?? so isn't that mean that everyone are breaching their "patent"?

btw... wtf did they invented there? what brilliant mind worked hard to achieve this amazing "patent"?
#5.1 darksoul on 21 Nov 2003 - 14:41
You now understand the absurdity of "business process and software patents" EBay should move to the EU where they don't recognize such BS
#6 Imaginos on 21 Nov 2003 - 11:59
This is getting way out of control.. However, it gives me incentive to go forward with my commerce patent. I will be patenting a transaction method where a customer hands a clerk a credit card with their right hand and the clerk accepts it with his right hand and then... oh, no.. no.. I've said too much already.. I'm gonna be so bloody rich after the lawsuits!
(1 reply) #7 YaZoR on 21 Nov 2003 - 12:20
bunch of bell ends



Last edited by 17557 on 21 Nov 2003 - 13:13
#7.1 mipra on 22 Nov 2003 - 06:52
hahha...nice cartoon
(2 replies) #8 Conundrummm on 21 Nov 2003 - 12:56
You would think that all these ridiculous cases would stun the government into realising it's folly in allowing companies to patent, trademark and copyright every single thing under the sun. It creates a situation where individuals and companies can't make a move without being slapped with a lawsuit. Companies can patent pie-in-the-sky ideas and wait for someone to make it into reality and then pounce. They can patent nature and the centuries-old techniques using things in nature and then try and charge peoples around the world for using what their ancestors developed. If you think the patent issues in the tech industry are outrageous, just look at those involving patents of plants like rice and spices like turmeric and the blood cells of man in Papua New Guinea. C-R-A-Z-Y.

I think that I will apply for a patent for the process of the inhalation of oxygen and the exhalation of carbon dioxide within a Nitrogen-Oxygen environment. My second patent will be for the transmission of data across something i'll call 'the internet' in digital form. I'm going to be soooo rich.
#8.1 mrbester on 21 Nov 2003 - 13:15
I hereby inform you that you are in breach of my patent, specifically: "The utilisation of digits / extremities of a lemur descended homo sapiens in order to convey information, entertainment or any other form of communication directed at unspecified person or persons, objects or entities" when you wrote that post. UOMe <DrEvil>a miiiillion dollars</DrEvil>
#8.2 darksoul on 21 Nov 2003 - 14:43
Again the issue is with business process and software patents
#9 briangw on 21 Nov 2003 - 13:23
They waited this long for a lawsuit?

Well hell, I'm suing my 5th grade teacher for going on sick leave for the rest of the year and affecting my educational track!
#10 BananaMan's Girl on 21 Nov 2003 - 13:29
It's nice to see that no one is trying to defend AT&T... This makes me feel better about the community.

I first read about AT&T at Penny Arcade... where they spoke of AT&T getting a patten to circumvent a certain kind of spam filter. (For the safety of their customers, of course! )

Now, they're doing this. Sueing Ebay and Paypal. Two big names on the internet. This will be interesting to observe.
(1 reply) #11 funkyMonkey on 21 Nov 2003 - 13:29
welcome to united states of lawsuits
#11.1 mipra on 22 Nov 2003 - 06:53
Where lawsuits rulezz
#12 The Teaser on 21 Nov 2003 - 13:33
lol, i think ebay is wank anyway
(5 replies) #13 =Syntax= on 21 Nov 2003 - 13:51
LOL one thing leads to another :p Oh and drop the ARE in the title...patents belong to us !
#13.1 g33kb0y on 21 Nov 2003 - 14:03
LoL
#13.2 DivADPArADox on 21 Nov 2003 - 14:13
QUOTE
Oh and drop the ARE in the title...patents belong to us !


hah, are you serious?
#13.3 Octol on 21 Nov 2003 - 14:35
You missed "AT&T are going to hell." in #4 above.

It's "AT&T is going to hell."
#13.4 Xeon™ on 21 Nov 2003 - 15:51
yea, but i dont think att is going to hell ;-) been around way too long for that.
#13.5 jkinzer on 21 Nov 2003 - 20:19
That's an old joke from a poor English translation of the game Zero Wing. The original line was "All your base are belong to us." Thus, the "are" does belong where they put it, as it is a reference to this old joke.

Check out this Flash animation that shows what I'm talking about: All Your Base Are Belong To Us

Last edited by 3270 on 21 Nov 2003 - 20:26
(1 reply) #14 Bwizzel-B on 21 Nov 2003 - 15:10
This is a ridiculous patent. AT&T developed nothing in terms of code for accomplishing this. At least SCO has something tangible to use to go around suing the world over.
Oh, and AT&T, your phones suck.

B
#14.1 Octol on 23 Nov 2003 - 06:20
Hmm....SCO says it has something tangible, but nobody's getting to see it.

Maybe the only thing tangible that it does have is the license fees that it has suckered some companies into paying!
#15 Emon on 21 Nov 2003 - 15:17
its sooo awesome !! how much does it take to patent something ?
if its few hundred bucks ..I am sure in hell going to patent some stuff ..


All your parents ..belong to us ! ( well ..it will be me .. )
(2 replies) #16 Evolution on 21 Nov 2003 - 15:26
*thinks to himself* Has anyone claimed for the invention of the period(gramatically speaking) hmmm this is pretty sad...
#16.1 Octol on 21 Nov 2003 - 15:43
People attempt it periodically.
#16.2 rogerroger on 21 Nov 2003 - 18:02
LOL
#17 gameguy on 21 Nov 2003 - 15:42
hmmm... sounds a bit like eolas to me
(1 reply) #18 |CiN|FuL on 21 Nov 2003 - 17:07
"All your patents are belong to us" - Word.
#18.1 mipra on 22 Nov 2003 - 06:55
and that translates to even more fees
(4 replies) #19 walpurgis999 on 21 Nov 2003 - 17:19
Ok, shouldnt there be a timeline with these type of actions? AT&T just woke up one day and wanted to do this, or did they wait long enough to let Paypal make enough money to get a significant monetary amount from them in a lawsuit? Also, who the hell created his statement, "All your patents are belong to us"? What the hell. I me you be unhappy so are we about this here. "All your patents NOW belong to us". Proper english starts at home and business, if we teach kids to talk like fools, then they will.
#19.1 rogerroger on 21 Nov 2003 - 18:06
walpurgis999, we know you are a young kid. The "All you patents are belong to us" is a take off on the much popular and over-used phase, "All your base are belong to us" from an old video game called Zero Wing.

So you can get proper education, visit http://www.sirlinksalot.net/ayb.html.

#19.2 rogerroger on 21 Nov 2003 - 18:07

We found the one computer person on the planet who's not heard of "All your base are belong to us." That is sacrilegious!
#19.3 Arkayz on 21 Nov 2003 - 19:41
Probably were waiting on someone like Ebay to buy them out since Paypal didn't have the kind of money to pay off any penalties if AT&T DID win the lawsuit. Ebay has a nice fat piggy bank, $$$.
#19.4 Emon on 21 Nov 2003 - 22:12
walpurgis999, you crack me up dude ... "All your base are belong to us" .. I mean .. literally
(1 reply) #20 Richteralan on 21 Nov 2003 - 18:02
Great way to make money...........duh~~
#20.1 mipra on 22 Nov 2003 - 06:54
gonna be even more fees for us
(2 replies) #21 lwebster_2000 on 21 Nov 2003 - 18:38
what if einstien had patented e=mc2?
#21.1 Trajik 2600 on 21 Nov 2003 - 18:52
He didn't. I am the patent holder, cease and desist letter is on its way
#21.2 Octol on 23 Nov 2003 - 06:26
He couldn't: prior art by the Draxenii of Proxima Centauri III.
#22 altermind on 21 Nov 2003 - 23:07
OMG... patiants are getting stupid these days
#23 Beast_4thHM on 22 Nov 2003 - 00:36
OMG! I dont believe some people dunno the world famous phrase of : "All Your Base Are Belong To Us" !!!
#24 Dwarden on 22 Nov 2003 - 01:17
End is near ...
Everything is patented , all including oxygen and water is taxed and so on ...
Man o man where we are going to learn some ideas must be patent free or whole market stuck in patent web ...
#25 mipra on 22 Nov 2003 - 06:54
Gotchaaa!!!
#26 shikne on 22 Nov 2003 - 10:31
hahaha
#27 cronos on 22 Nov 2003 - 20:40

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