PayPal sued in patent dispute

By Troy Wolverton
Staff Writer, CNET News

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Tumbleweed Communications has filed a patent infringement suit against PayPal in U.S. District Court for the Northern District of California, PayPal said in a regulatory filing on Wednesday. Redwood City, Calif.-based Tumbleweed charged PayPal with violating two of its patents, both related to electronic notification processes and document storage and retrieval. PayPal believes that it did not violate the patents and plans to contest the suit, the company said in the filing.

Separately, privately held Internet company NetMoneyIn has accused PayPal of violating some of its patents related to processing credit and debit card payments, according to PayPal's regulatory filing. NetMoneyIn has said it will sue PayPal if PayPal doesn't license the patents; PayPal does not believe it is violating the patents. Last month, PayPal settled a patent dispute with online security company CertCo. CertCo sued PayPal in February, forcing the online payments company to delay its initial public offering.

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