PayPal hit by new patent suit

First USA Bank has filed suit against PayPal, alleging that the online payment company is infringing on its patents. The lawsuit was filed Friday in U.S. District Court in Delaware. It involves two patents that cover "cardless payment" systems, which allow consumers to pay for transactions using a telephone number and a security code.

PayPal executives could not immediately be reached for comment. A representative for Bank One, the corporate parent of First USA, said the company does not comment on pending litigation. According to the U.S. Patent and Trademark Office, the patents in question were issued to Kurt M. Campisano in May 2001 and January 2002. --Margaret Kane, Special to ZDNet News