posted on February 11, 2002 12:41:43 PM new
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 09:15:26 PM new
Hey Coonr, have you been talking to your local congressman? LOL!!!!!!!!
[ edited by dealerjim on Feb 11, 2002 09:15 PM ]
