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XPRT Ventures sues eBay for $3.8bn in patent infringement case
by Priyanka - July 14, 2010 - comments
The filed document added, how come eBay failed to mention it to Patent and Trademark Office that it already knew about XPRT owned patent applications.
A small firm named XPRT Ventures LLC on Tuesday sued eBay Inc., online retailer and auctioneer, for over $3.8 billion claiming violation of six of its patents that were used by eBay to develop its online payment unit PayPal.
As per XPTR Ventures complaint filed in the federal court in Delaware, "eBay incorporated such inventive concepts and ideas into its auction payment process during current California gubernatorial candidate Meg Whitman's tenure as eBay's CEO."
In filed document XPTR also claimed that it shared its patent application idea with the ecommerce giant “in confidence” which eBay later incorporated it into its own payment systems such as PayPal Pay Later, Bill Me Later Inc., Shopping.com, StubHub and PayPal Buyer Credit.
"eBay's unauthorized incorporation was a misuse of Inventors' confidential and proprietary material,” said XPTR Venture’s spokesman in a statement released on Tuesday.
The ecommerce giant eBay was not available for the comment on this latest development on the legal front.
EBay breached trust by applying for the same patent?
In its complaint documents XPRT claimed that eBay breached trust when it filed a patent request application on April 30, 2003 titled "Method and System to Automate Payment for a Commerce Transaction," in the U.S. Patent and Trademark Office.
As per XPTR Ventures complaint filed in the federal court in Delaware, "eBay incorporated such inventive concepts and ideas into its auction payment process during current California gubernatorial candidate Meg Whitman's tenure as eBay's CEO."
The filed document added, how come eBay failed to mention it to Patent and Trademark Office that it already knew about XPRT owned patent applications.
By filing for the same patents eBay has "admitted the patentability of the inventors' claims," stated the complaint.
"The inventors listed on XPRT's patents shared their patent applications and ideas on how to implement such concepts taught therein, with eBay in confidence," said Steven Moore, a partner at Kelley Drye & Warren LLP representing the plaintiff, in an interview.
He further added, "This involves a trade secret theft, along with sheer patent infringement. It is bad enough to take someone's technology, but it is a bit much to use it in your own patent application."
XPRT Ventures, along with the $3.8 billion in monetary damages, will also be seeking treble damages from eBay for its alleged "willful and malicious conduct.”
EBay looking into the matter
EBay was not immediately available for the comment after the news that it was being sued. However, later in the day company released a statement saying that it was looking into the matter.
"We are reviewing the complaint filed today. We believe it is without merit, and intend to defend ourselves vigorously,” said an eBay's representative in the statement.