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

2027 XBIZ Exec Awards Pre-Nominations Period Opens

XBIZ is pleased to announce that the pre-nomination period for the 2027 XBIZ Exec Awards, the adult industry’s preeminent career honors, begins Wednesday and runs through Oct. 14.

Takedown Piracy Reports Infiltration, Monitoring of 'Mega.nz' Pirated Content

Takedown Piracy has reported that the organization has successfully infiltrated Mega.nz folders and identified and removed thousands of instances of stolen content.

Pornhub Unblocks Australia Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in Australia will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s Australian age-verification process.

California Governor Signs Bill Limiting CIPA Claims

Governor Gavin Newsom has signed into law a bill to narrow the scope of the California Invasion of Privacy Act (CIPA), to prevent abusive lawsuits targeting online businesses, including adult websites.

California Enacts Stricter UGC Rules for Adult Sites

Governor Gavin Newsom has signed into law a bill to impose tighter compliance standards for user-generated content (UGC) on adult websites accessible in California.

Minister: UK Aims to Begin Enforcing 'Choking' Ban Before Year's End

The U.K. will soon begin enforcement of a new law criminalizing depictions of “non-fatal strangulation” in adult content, according to a Ministry of Justice official.

XBIZ LA Conference Website Now Live, Registration Open

The event website for the XBIZ LA conference is now live, offering comprehensive information about the upcoming event, taking place Jan. 7-10 at the JW Marriott L.A. LIVE.

CrakRevenue Launches Mobile App for Real-Time Affiliate Alerts

CrakRevenue has launched Aff Companion, a mobile app that sends affiliates real-time notifications about clicks, conversions, and revenue.

Goddess Lilith Launches New Official Website Through PAYSITE

Goddess Lilith has rolled out her new official site, QueenGoddessLilith, through PAYSITE.

Pineapple Support to Host 'Reclaiming Intimacy' Support Group

Pineapple Support is hosting a free online support group for performers with trauma-impacted intimacy issues.

Show More