posted on February 11, 2002 12:42:47 PM new
CLIPPED FROM WALL STREET JOURNAL
WASHINGTON -- PayPal Inc. accused rival CertCo Inc. of filing its patent-infringement suit to purposely delay PayPal's initial public offering.
PayPal, a Palo Alto, Calif. online payment company, had initially set its IPO for last Wednesday, but the offering was postponed after rival CertCo filed a suit last Monday over a patent for a system that sends a verifiable payment advice message. PayPal (www.paypal.com) refiled its offering documents late last week with the Securities and Exchange Commission, blaming CertCo's suit as the reason for postponing the IPO pricing.
PayPal updated that filing again Monday, saying it asked that a judge declare the CertCo suit "an exceptional case," which could entitle PayPal to receive attorney's fees from CertCo, based in New York. PayPal argued that CertCo's patent was issued two years ago, and PayPal has been offering its service for more than two years. PayPal said it had concluded that the timing of the suit was designed to disrupt the IPO.
The company said it isn't infringing on the patent, and that the CertCo patent is invalid.
CertCo (www.certco.com) officials weren't immediately available for comment.
PayPal also revealed Monday that Louisiana has asked it to stop transmitting money in that state without a license. The company said it will comply with any order received from Louisiana authorities, but would reserve "the right to contest the order through the appropriate administrative process."
posted on February 11, 2002 06:35:17 PM new
Just saw this on the news. More states may follow. I figured with all the fraud paypal was doing something like this would happen. eBay should ban them!
posted on February 11, 2002 06:52:46 PM new
Why should ebay ban PayPal? Maybe there is alot of fraud by PayPal, but we never hear about any other services because the majority of ebays sellers/buyers use paypal. It's the big time sellers that drop ship that have the trouble with PayPal that come in here and complain. Here is another thread that doesn't belong in the eBay forum. Oh wait, I had to take a look at the top of the page. it says The eBay Outlook, not PayPal. Where in the original thread does it have any reference to eBay...See now why we need monitors. To bad Joice isn't here. This topic pops up every now and again just to get the blood boiling.
posted on February 11, 2002 07:37:37 PM new
Awwwww go cry in the corner baby. You cant run to the mod squad anymore. No wonder AW got rid of the mods! Paying people to hear people cry?
posted on February 11, 2002 08:48:25 PM new
Paypal is relevant to ebay, many accept payment using this service.
Just read the on-line article about this, glad they are licensed in my state (Oregon) but it looks like they could be in a LOT of trouble if New York or California shuts them down, which is possible. Also, with the patent claim by another company, it makes me very nervous about using paypal.
I just did a payment transfer to my bank. I plan on still using Paypal, but I won't let my balance go over $100 without doing a transfer. This is not FDIC insured as far as I can tell. If they disappear, so will the money. I have sort of been affected by this already, I had an account with Flooz and when they went under, I lost about $50. I'm willing to have $100 at risk with paypal, but nothing more.
