Changes

==Legal Battle==

==Legal Battle==

In February 2002, the Initial Public Offering of PayPal was delayed due to patent infringement lawsuit filed by [[CertCo]],  a private online security and risk management company based in New York.<ref>[http://news.cnet.com/2100-1017-830235.html?tag=mncol;txt PayPal delays IPO]</ref> CertCo alleged that PayPal's electronic system infringed its patent no. 6,029,150 (Payment and Transactions in Electronic Commerce System), which was awarded by the United States Patent Office ([[USPO]]) on February 22, 2000.<ref>[http://www.internetnews.com/ec-news/article.php/970181/CertCo+Lawsuit+Postpones+PayPal+IPO.htm CertCo Lawsuit Postpones PayPal IPO]</ref> PayPal denied CertCo's allegations  and described it a deliberate attempt to disrupt its initial public offering.<ref>[http://news.cnet.com/PayPal-Lawsuit-designed-to-delay-IPO/2110-1017_3-834040.html?tag=mncol;1n PayPal: Lawsuit designed to delay IPO]</re> On April 2002, PayPal settled the lawsuit with CertCo. According to them the settlement agreement involved "a non-consequential payment and mutual releases." The details of the settlement agreement were not disclosed to the public.<ref>[http://www.internetnews.com/bus-news/article.php/1023191/CertCo+Drops+PayPal+Patent+Suit.htm CertCo Drops PayPal Patent Suit]</ref>

In February 2002, the Initial Public Offering of PayPal was delayed due to a patent infringement lawsuit filed by [[CertCo]],  a private online security and risk management company based in New York.<ref>[http://news.cnet.com/2100-1017-830235.html?tag=mncol;txt PayPal delays IPO]</ref> CertCo alleged that PayPal's electronic system infringed its patent no. 6,029,150 (Payment and Transactions in Electronic Commerce System), which was awarded by the United States Patent Office ([[USPO]]) on February 22, 2000.<ref>[http://www.internetnews.com/ec-news/article.php/970181/CertCo+Lawsuit+Postpones+PayPal+IPO.htm CertCo Lawsuit Postpones PayPal IPO]</ref> PayPal denied CertCo's allegations  and described it a deliberate attempt to disrupt its initial public offering.<ref>[http://news.cnet.com/PayPal-Lawsuit-designed-to-delay-IPO/2110-1017_3-834040.html?tag=mncol;1n PayPal: Lawsuit designed to delay IPO]</ref> On April 2002, PayPal settled the lawsuit with CertCo. According to them the settlement agreement involved "a non-consequential payment and mutual releases." The details of the settlement agreement were not disclosed to the public.<ref>

[http://www.internetnews.com/bus-news/article.php/1023191/CertCo+Drops+PayPal+Patent+Suit.htm CertCo Drops PayPal Patent Suit]</ref>

 

PayPal faced another legal battle in 2002 days after its Initial Public Offering. A class action lawsuit was filed by the law firm Jacoby & Meyers in behalf of consumers. According to Atty. Gail Koff, PayPal locked a customer's account instead of freezing, the amount of transaction in question when it suspects that a fraud has been committed. Since the consumers entire accounts were frozen, they weren't able to make any business transactions (send and receive payments). They claimed that PayPal's restriction to their accounts is illegal. <ref>[http://news.cnet.com/2100-1017-842240.html PayPal hit by class-action suit]</ref>

==References==

==References==

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