PayOne Sues Home Depot Over Patent-Infringement Claims

Home Depot Inc. was sued by PayOne Corp. over claims the largest U.S. home-improvement retailer is infringing patents for the processing of payment transactions and validating subscriber lines.

PayOne, formerly known as PaymentOne, wrote to Atlanta-based Home Depot in November to notify the company of the infringement, according a complaint filed yesterday in federal court in San Jose, California.

Home Depot infringed a patent at issue by offering PayPal’s In-Store Checkout System as a payment option, according to the complaint. PayOne, based in San Jose, owns a system that allows consumers to charge digital purchases to mobile, broadband or home phone bills, according to its website.

Home Depot spokesman Steve Holmes said yesterday he hadn’t seen the suit yet.

The case is PaymentOne Corp. v. Home Depot Inc., 13-cv-0993, U.S. District Court, Northern District of California (San Jose).