Stamps.com Inc. and eBay Inc. announced the companies have resolved various disputes that led to the filing of litigation in June 2003.

Stamps.com had claimed it had an agreement with PayPal to develop a service that would allow sellers using PayPal to calculate the exact amount of postage required and print a shipping label with the buyer's information. In June 2003, one day after eBay announced its agreement with UPS to further integrate UPS shipping tools into the eBay system, Stamps.com sued PayPal and eBay for breach of contract and other claims with respect to the license agreement signed between Stamps.com and PayPal in June 2002.

The companies announced Wednesday that eBay will pay Stamps.com an undisclosed amount up front, designated for settlement. The parties also agreed to a 3-year license of software and intellectual property owned by Stamps.com. Further details were not disclosed.

"We are very satisfied with the outcome in this matter," said Ken McBride, CEO of Stamps.com. "This deal represents a terrific return to our shareholders for the large investment we have made in our technology and intellectual property."

"We are pleased to reach a mutually beneficial arrangement with Stamps.com," said Michael Jacobson, Senior Vice President and General Counsel of eBay.