"PayPal and eBay have infringed AT&T's U.S. patent that covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet." I wonder what American Express, VISA (and Plus), MasterCard (and Cirrus), Diner's Club, NASDAQ, Autex, Telerate, and even Quotron -- not to mention CRESTCo, DTC, and SWIFT -- would have had to say about *that*? *This* should be fun... :-) Cheers, RAH ------ <http://www.bizreport.com/print.php?art_id=5593&PHPSESSID=7b0afc16afe9e13683ded6fe564edd88> ? Anglo-American history Thursday, November 20, 2003 AT&T Files Patent Infringement Suit Against PayPal, Inc., and eBay, Inc. AT&T Corp. today filed a patent infringement suit against PayPal, Inc. and eBay, Inc., in federal district court in Delaware. AT&T alleges that, through the use of their online payment systems, PayPal and eBay have infringed AT&T's 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&T's lawsuit seeks compensation for PayPal's and eBay's 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&T's 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&T's 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. About AT&T AT&T (www.att.com) is among the premier voice and data communications companies in the world, serving businesses, consumers, and government. The company runs one of the most sophisticated communications networks in the United States, backed by the research and development capabilities of AT&T Labs. A leading supplier of data, Internet and managed services for the public and private sectors, AT&T offers outsourcing and consulting to large businesses and government. The company is a market leader in local, long distance and Internet services, as well as transaction-based services like prepaid cards, collect calling and directory assistance. With approximately $37 billion of revenue, AT&T has about 40 million residential customers and 4 million business customers, who depend on AT&T for high-quality communications. AT&T has garnered several awards for outstanding performance and customer service. The foregoing contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T. -- ----------------- R. A. Hettinga <mailto: rah@ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' --------------------------------------------------------------------- The Cryptography Mailing List Unsubscribe by sending "unsubscribe cryptography" to majordomo@metzdowd.com
On Fri, 21 Nov 2003, R. A. Hettinga wrote:
"PayPal and eBay have infringed AT&T's U.S. patent that covers transactions in which a trusted intermediary securely processes payments over a communications system such as the Internet."
I wonder what American Express, VISA (and Plus), MasterCard (and Cirrus), Diner's Club, NASDAQ, Autex, Telerate, and even Quotron -- not to mention CRESTCo, DTC, and SWIFT -- would have had to say about *that*?
They won't say anything. They won't have to. Paypal and eBay are both dangerously close to being an underground economy. One is able to transact business without that transaction being tracked by Visa/mc et al. Just like the new banking moves are aimed at getting rid of "check cashing stores", these legal manuevers are aimed at getting rid of any kind of non-controlled commerce. Since the end of all of this is supposed to be a cashless society and an "end to violence" I wonder when john q public will realize that one can trade goods for crack and no money need change hands, hence these pushes are more likely to cause even worse crime, rather than less.
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R. A. Hettinga