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eBay & PayPal Win Web Billing Patent Dispute

(CN) - Netcraft's claim that eBay and PayPal violated Internet billing patents fails because the Web auction giant doesn't actually provide Internet access to its third-party customers, the Federal Circuit ruled.

The phrase "providing a communications link through equipment of the third party" appears in all the patent claims and was construed by the district court to create a requirement for providing customer access to the Internet.

Netcraft claimed that the phrase is not a description of the invention and that the meaning of "communications link" is much broader than the district court's understanding.

Affirming the district court's judgment of non-infringement, the federal appeals court determined that the phrase establishes a clear requirement for infringement.

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