Federal Judges Go With eBay, PayPal in Online Billing Firm's Patent Infringement Case

MADISON, Wisc. — A federal appeals court panel has denied a patent infringement lawsuit brought by an Internet billing company against eBay and PayPal.

At the core of the suit was whether Netcraft and Andrew Egendorft, the company’s president and registered patent-holder, provided the means that their service is delivered to the end user: the Internet.

Judges at the U.S. Court of Appeals for the Federal Circuit concluded that Netcraft’s claim wasn’t convincing enough.

“We have considered the cited prosecution history and conclude that it lacks the clarity of the specification regarding the meaning of the claim terms at issue here,’ thus rendering it less useful for claim construction purposes,” the appeals panel wrote.

The three judges issued their opinion in Netcraft vs. eBay Inc. and PayPal Inc. at the U.S. District Court in Madison, Wisc., last week.

At both the district and the appeals level, the judges decided that Netcraft’s claim should be dismissed because the billing company doesn’t provide Internet access to customers.

They noted both patents held by Egendorft specify that there’s “a communications link through equipment of the third party.”

Netcraft originally sued eBay and PayPal at U.S. District Court in Madison before Chief Judge Barbara B. Crabb.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

2026 XBIZ LA Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for the XBIZ 2026 conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Needemand Joins ASACP as Corporate Sponsor

French startup company Needemand has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Utah State Legislator Proposes New 'Porn Tax'

A Utah state senator introduced a bill on Monday that would impose a 7% tax on the gross receipts of adult websites doing business in that state, plus require adult sites to pay an annual $500 fee.

Carlotta Champagne is LoyalFans' 'Featured Creator' for January

LoyalFans has named Carlotta Champagne as its Featured Creator for January.

Pineapple Support Relaunches Site

Pineapple Support has updated and relaunched its website.

Arcom-Targeted Sites Implement Age Verification in France

Five high-traffic adult websites based outside of France have implemented age verification as required under the nation’s Security and Regulation of the Digital Space (SREN) law, after receiving warnings from French media regulator Arcom.

Goddess Lilith Launches 'Adultpreneurs' Networking Site

Goddess Lilith has launched Adultpreneurs, a new community and networking site.

Adult Shoot Location Marketplace 'FckSpace' Launches

FckSpace, a new platform aimed at simplifying location sourcing for adult productions, is now live

Florida Attorney General Dismisses AV Suit Against Segpay

The Florida attorney general’s office on Monday agreed to dismiss claims against payment processor Segpay in a lawsuit over alleged noncompliance with the state’s age verification law.

FTC Weighs Reboot of 'Click to Cancel' Rulemaking Process

The Federal Trade Commission has invited public comments on a petition to renew trade regulation rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Show More