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PayOne files lawsuit against Home Depot

SAN JOSE, Calif. (AP) -- PayOne Corp. has filed a lawsuit against Home Depot that claims the biggest U.S. home improvement company use of PayPal's in-store checkout infringes on some of its patents.

The privately held company, formerly called PaymentOne Corp., is seeking an unspecified amount in damages and an injunction against future infringement by Home Depot Inc.

PayOne said that some of the components of the PayPal system that infringe on its patents include the use of a cell phone number and a personal identification number to complete the checkout process and payment when a sales transaction occurs.

PayOne said that its service also allows shoppers to use a cell phone number and PIN during the sales process so that they don't have to give out credit card details or other sensitive financial information. The company said in a statement that it has invested "significant time and money" developing its mobile payment technologies.

The lawsuit was filed in the Northern District of California.

A representative for Home Depot Inc. could not be immediately reached for comment. The company's stock added 10 cents to $70.57 in midday trading.