Telephone giant AT&T has filed a legal action against Ebay and Paypal claiming that the auction giant is breaching patents it owns. According to the law suit, filed in a US federal court yesterday, both Ebay and Paypal technology breaches an AT&T patent for transactions using trusted intermediaries processes payments over the Internet.

The US giant wants Ebay and Paypal to compensate it for using what it claims is its technology.

Read more: [URL=http://www.theinquirer.net/?article=12785]The Inquirer[/URL].