A Connecticut company on Tuesday sued Ebay in a PayPal patent case for a whopping amount of $3.8 billion. The world’s largest auctioneer website is accused of infringing six patents in order to develop PayPal payment system. According to the case filed, eBay stole the information and incorporated it into its own systems, such as PayPal Pay Later and PayPal Buyer Credit.
A patent application was filed by eBay on April 30, 2003 for “Method and System to Automate Payment for a Commerce Transaction”, but it failed to inform the U.S Patent and Trademark Office if it knew about XPRT’s own patent applications. By filing for a similar patent, eBay has admitted the patentability of the inventor’s claims, the complaint includes.
This action has got eBay into a punishable Trade secret Theft and patent infringement crime.
According to eBay’s latest annual report, the company’s business generated $2.8 billion of net revenue in 2009, which counts for the 32 percent of the company’s $8.73 billion total business.