Law421 - Wk 3

Stamps.com

LAW/421 – Contemporary Business Law

July 28, 2013

Stamps.Com

Stamps.com, a provider of Internet-based postage and shipping services, has purchased 31 patents and other intellectual property rights from E-Stamp Corp. E-Stamp Corp has decided to exit the postage business in the fall of 2000. With this purchase, Stamps.com will acquire the E-Stamp name and E-Stamp.com Internet domains.

With Stamps.com taking over the market from their competitor of E-Stamp Corp, they have to make sure that they have to make sure all outstanding invoices and orders are taken care of when assuming all of E-Stamp Corp. This information should be contained in the selling contract between the two companies. They also need to make sure that the name is cleared from all royalties and trademarks from E-Stamp Corp.

With E-Business, Stamps.com will need to make sure that their systems are compatible to the existing systems they are using, so that the transition will be smooth. Although Stamps.com has acquired their competitor’s name, they will want to make sure that their system is secure so that they will not be in a compromising position with their customers. If their information was to be hacked, then Stamps.com could be held liable for a security breech. This problem could also become a problem if Stamps.com “cleaned house” with the existing employees.

All of the issues that come with acquiring another business also have to make sure that the existing business doesn’t have any liens or suits against them. Since this business is an approved business by the U.S. Mail system, then they need to make sure all of their licensures are legal and up to date with the Federal requirements.

Stamps.com has been able to acquire one of its major competitors and through this procedure has made the correct decisions in making sure that they have removed all interest and stock from E-Stamps Corp.

Reference:

Seward, Christopher.The Atlanta Constitution...