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The Intellectual Property Strategist

September 2024
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The Latest Threat To E-Commerce : The PanIP Patent Litigation Image

The Latest Threat To E-Commerce : The PanIP Patent Litigation

Jeffrey P. Dunning

As if the recent attacks on the tax-exempt status of Internet transactions were not enough for e-commerce vendors to worry about, a new problem has come to light for companies that sell goods or services via an Internet Web site. PanIP, LLC (PanIP), a company based in San Diego, has initiated lawsuits in the U.S. District Court for the Southern District of California against over 50 companies transacting business over their Internet Web sites, alleging that such activity constitutes infringement of two patents owned by PanIP.1 The patents asserted by PanIP are generally directed to "data processing systems designed to facilitate commercial, financial and educational transactions between multimedia terminals"2 and to "a system for filing applications with an institution from a plurality of remote sites, and for automatically processing said applications in response to each applicant's credit rating obtained from a credit reporting service."3

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