Stamps.com sues eBay, PayPal for breach of contract
Stamps.com, a provider of web-based postage services that let consumers print postage stamps from a personal computer, has filed a lawsuit against PayPal Inc. and eBay Inc., charging them with breaching a contract under which PayPal would use Stamps.com`s technology to offer online postage services to its customers. EBay, which acquired PayPal last fall after the contract was made with Stamps.com, said Thursday that it was not ready to make a statement regarding the lawsuit.
Under an agreement made in June 2002, PayPal said it would use Stamps.com technology to let PayPal users buy and print postage online through their PayPal accounts, Stamps.com said. It added that it had expected PayPal to begin offering the online postage services in time for the 2002 holiday season.
Stamps.com also charges that eBay, after acquiring PayPal in October 2002, improperly interfered in Stamps.com`s relationship with PayPal. Stamps.com said it seeks compensation for the value lost in the unfilled contract as well as damages related to PayPal`s and eBay`s failure to abide by the contract. It did not specify the amount of damages sought.
"Litigation is always viewed as a last resort, but given the fact that Stamps.com made a considerable investment towards this relationship, we felt we had to take this action," said CEO Ken McBride. "We remain hopeful that the parties can work out their differences."
PayPal provides a means of paying for online purchases for consumers who prefer not to use credit cards or checks to directly pay online merchants. PayPal is commonly used by consumers on eBay.
Back...
