PAID, INC. ANNOUNCES STAY OF LITIGATION WITH EBAY
July 1, 2014
PAID, Inc. (OTCBB: PAYD) today announced that it has agreed with eBay, Inc. to jointly request a stay of the district court litigation that PAID commenced against eBay, pending completion of petitions for covered business method patent review filed by eBay. The parties agree that resolution of certain threshold issues raised in the covered business method petitions will streamline the litigation.
On December 20, 2013 PAID filed a complaint against eBay in the United States District Court for the District of Massachusetts accusing eBay of infringing PAID’s United States Patent Nos. 8,635,150, 8,521,642, 8,352,357, and 7,930,237, titled “Method and System for Improved Online Auction” by providing an online platform with an automated shipping calculator.
On May 12, 2014, eBay filed petitions for covered business method review of PAID’s patents in the United States Patent Trial and Appeals Board (“PTAB”) alleging that one or more of PAID’s asserted patent claims are unpatentable.
On June 30, 2014, PAID and eBay filed a joint motion to stay the district court litigation pending completion of eBay’s petitions before the PTAB. In the event that the petitions for review are not instituted by the PTAB and the parties have not resolved this dispute, the parties have agreed to jointly petition the court to lift the stay.
“We are very pleased to have reached this agreement with eBay,” said Austin Lewis, Chairman and Chief Executive Officer of PAID. “The procedures implemented by the United States Patent and Trademark Office for covered business method reviews are designed to expeditiously resolve questions of patentability and validity. We feel confident about the strength and validity of PAID’s foundational intellectual property and we welcome an efficient and prompt process that will give PAID the opportunity to demonstrate the value of our patents.”
“The company continues to focus its resources on further developing and upgrading its AuctionInc ShopCart with its Integrated Shipping Calculator software platform,” added Lewis.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995:
Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the markets, the effect and possibility of a spinoff, the successful monetization of the patent, variations in the company’s cash flow, competition, celebrity programs, business development efforts, technology availability and cost of materials and other risk factors. Factors that could cause actual results to differ materially are discussed in the Company’s most recent filings with the Securities and Exchange Commission.