AT&T alleges that, through the use of their online payment systems, PayPal and eBay have infringed AT&Ts U.S. patent that covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet. The use of a trusted intermediary ensures that one party will not have to disclose sensitive information, such as a credit card number or bank account number, to the other party to the transaction. AT&Ts lawsuit seeks compensation for PayPals and eBays unauthorized use of the patented technology. More than a year ago AT&T notified both PayPal and eBay that they were using technology covered by AT&Ts patent in the PayPal and BillPoint payment systems. AT&T offered to license the patented technology to each of the companies. AT&T has attempted to reach an amicable agreement regarding this matter with eBay and PayPal. AT&T has invested hundreds of millions of dollars every year in research and development, and the company seeks to protect its inventions by licensing its patents to those who use its intellectual property. Because the two companies have refused to pay for a license to use the patented technology, AT&T has been forced to bring the matter to the court. AT&Ts patent was originally filed with the U.S. Patent and Trademark Office in 1991. In July of 1994, the Patent and Trademark Office granted AT&T U.S. Patent No. 5,329,589 for its invention.
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