eBay sued for $US3.8 billion, Swan to announce budget windfall: Economy Roundup

Online auction house eBay has been sued for $US3.8 billion by a company called XPRT Ventures, which has accused eBay and subsidiary brand PayPal of using its eCommerce technology to accept payments from consumers.

The suit, which was filed in the Federal district court in Delaware, accuses eBay and PayPal of using six of XPRT’s patents, including a 2003 patent called “Method and System to Automate Payment for a Commerce Transaction.”

“The inventors listed on XPRT’s patents shared their patent applications and ideas on how to implement such concepts taught therein, with eBay in confidence,” a statement from XPRT’s law firm, Kelly Drye and Warren, reveals.

“eBay incorporated such inventive concepts and ideas into its auction payment process during current California gubernatorial candidate Meg Whitman’s tenure as eBay’s CEO. eBay’s unauthorized incorporation was a misuse of inventors’ confidential and proprietary material.”

eBay is apparently considering the lawsuit, but has already said it believes it is “without merit”.

Meanwhile, treasurer Wayne Swan is set to announce a budget windfall of about $5 billion per year due to upgrades in commodity price forecasts, the Australian has reported.

Along with treasury forecasts to be released this afternoon, reports suggest the upgraded commodity prices will deliver a further $5 billion in revenue, confirming the Government’s plan to reduce the deficit by 2013.

Billions worth of gas projects in Queensland have been put on hold for three months so environment minister Peter Garrett can study their potential effects.

Garrett has put the Santos and BG liquefied natural gas projects in Gladstone and Curtis Island on hold. The assessments will not be given until 11 October, a spokesperson for Garrett told AAP.

“These are the first coal seam gas LNG projects that have been assessed under national environment law, and it’s important that the potentially significant environmental impacts of this project on nationally protected matters are properly assessed,” the spokesman told AAP.

“This is the same approach the minister has adopted for other major development proposals.”

Meanwhile, the ABC has announced it will begin broadcasting its 24-hour news service next Thursday, 22 July, from 7.30pm.

Sharemarket opens higher after global leads

The Australian sharemarket has opened higher today, following solid financial leads from both Europe and the United States.

The benchmark S&P/ASX200 index was up 63 points or 1.46% to 4444.2 at 12.00 AEST, while the Australian dollar was also up to US88c.

NAB shares rose 1.4% to $24.73, while Commonwealth Bank shares gained 1.8% to $50.82. ANZ climbed 1.5% to $22.59, while Westpac gained 2% to $22.70.

Airline giant Qantas has brought forward its order of the first Boeing 787 Dreamliners by a full two years. The company announced today the aircraft will be delivered in 2012.

“Today’s announcement confirms that the B787, with its new technologies and improved fuel efficiency, is still very much the right aircraft for both Qantas and Jetstar,” Qantas chief executive Alan Joyce said in the statement.

“It will be ideal for point-to-point flying on medium density routes, both short and long haul and will allow Jetstar to move into southern Europe as well as build on its Asian network.

Former Trio Capital manager Shawn Richard has admitted to lying regarding his involvement overseeing $123 million worth of superannuation investments, The Age has reported.

The admission was reportedly given in the New South Wales Supreme Court, as Richard gave evidence as part of a number of public examinations.

Mr Richard said he had been instructed to lie by Hong Kong businessman Jack Flader, as well as the late Matthew Littauer, and he admitted to having acted on their orders.

In the mining industry, giant Rio Tinto has secured funding of $226.4 million to expand the Pilbara iron ore operations, with the company to begin issuing dredging contracts.

”Rio Tinto has a proven track record of managing large-scale iron ore expansion projects, and this decision should be seen in that light,” Rio Tinto chief executive iron ore and Australia, Sam Walsh, said in a statement.

”It is important at this stage that we advance this process in an orderly manner, and this decision does that.”

Wall Street rallies on solid corporate results

Chip manufacturer Intel recorded better-than-expected financials overnight, boosting investor confidence ahead of the reporting season. The company announced revenue for the quarter ending 26 June came to $US10.8 billion, compared to $US8 billion in the previous corresponding quarter.

Intel also recorded net income of $US2.9 billion, compared to the previous corresponding quarter when it recorded a loss of $US398 million. At that time, a European Commission fine was handed down costing $US1.4 billion.

The announcement, along with strong European shares, sent the Dow Jones Industrial Average gained 146 points or 1.44% to 10,363.02.