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A second patent infringement case was filed by Tumbleweed Communications at the US District Court of Northern California on May 7, 2002. Tumbleweed Communications claimed that PayPal violated its electronic notification processes and document storage and retrieval patents. E-bay, the parent company of PayPal agreed to settle the legal charges under a cross licensing agreement o December of the same year.<ref>[http://www.crn.com/news/channel-programs/18840325/ebay-settles-patent-lawsuit-with-tumbleweed-communications.htm;jsessionid=CZrcnTI-iIRmXGEuXaVVUA**.ecappj03 EBay Settles Patent Lawsuit With Tumbleweed Communications]</ref>
 
A second patent infringement case was filed by Tumbleweed Communications at the US District Court of Northern California on May 7, 2002. Tumbleweed Communications claimed that PayPal violated its electronic notification processes and document storage and retrieval patents. E-bay, the parent company of PayPal agreed to settle the legal charges under a cross licensing agreement o December of the same year.<ref>[http://www.crn.com/news/channel-programs/18840325/ebay-settles-patent-lawsuit-with-tumbleweed-communications.htm;jsessionid=CZrcnTI-iIRmXGEuXaVVUA**.ecappj03 EBay Settles Patent Lawsuit With Tumbleweed Communications]</ref>
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On September of 2002, another patent infringement case was filed against PayPal by First USA Bank, N.A., a subsidiary of Bank One Corporation. The company claimed that PayPal infringed its two patents; one was the use of telephone numbers and personal identification numbers and the use of e-mail addresses  as transaction identifiers for its cardless payment system. First USA Bank asked the court to issue an injunction order to stop PayPal from using its payment system. In addition the company asked for financial damages from PayPal. On the other hand, PayPal denied the accusations and promised to fight the case in the court.<ref>[http://www.pcworld.com/article/104855/paypal_hit_with_patent_infringement_lawsuit.html PayPal Hit With Patent Infringement Lawsuit]</ref>
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On September of 2002, another patent infringement case was filed against PayPal by First USA Bank, N.A., a subsidiary of Bank One Corporation. The company claimed that PayPal infringed its two patents; one was the use of telephone numbers and personal identification numbers and the use of e-mail addresses  as transaction identifiers for its cardless payment system. First USA Bank asked the court to issue an injunction order to stop PayPal from using its payment system. In addition the company asked for financial damages from PayPal. On the other hand, PayPal denied the accusations and promised to fight the case in the court.<ref>[http://www.pcworld.com/article/104855/paypal_hit_with_patent_infringement_lawsuit.html PayPal Hit With Patent Infringement Lawsuit]</ref> <ref>[http://www.finextra.com/news/fullstory.aspx?newsitemid=6677 Paypal rebuffs First USA patent infringement suit]</ref>
    
===Class Action Lawsuit===
 
===Class Action Lawsuit===
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