Slashdot Mirror


Online Auctions Patented, eBay Sued

mattfusf writes "This article from News.com talks about a guy who has filed a lawsuit against eBay for patent infringment. Patent 5,845,265 covers a "method..for creating a computerized market for used and collectible goods""

224 of 585 comments (clear)

  1. You know by Anonymous Coward · · Score: 5, Funny

    Thomas Woolston could just auction those patents off on eBay. He'll make a killing and save on lawyer fees.

  2. One more ... by Koyaanisqatsi · · Score: 3, Insightful

    And can you imagine "what if" someone had a patent on *normal* auctions?

    This whole issue of patents for "doing things with computers" is getting a bit out of hand. I'll be curious to see the outcome of this.

    1. Re:One more ... by Kierthos · · Score: 3, Insightful

      The outcome will most likely be that eBay pays an undisclosed amount in a settlement. Frankly, from reading the article, this patent-filing jackass is yet another example of a lawyer abusing the system, rather then using it. At least one of his patents should not have been granted, probably all three mentioned.

      And in his filing against Priceline, it's pretty obvious that they were already engaged in that business model before he filed the patent.

      Hopefully, however, common sense in the judge will reign, and he will not only throw out any case against eBay, but hit this lawyer with extremely large financial sanctions and strip him of his license to practice law.

      Kierthos

      --
      Mr. Hu is not a ninja.
    2. Re:One more ... by joshsisk · · Score: 2, Funny

      I think you hit the nail on the head. I'm going to patent "a process by which you use a computer to perform a standard task."

      I'll make billions.

    3. Re:One more ... by uncoveror · · Score: 3, Funny

      It would cost Ebay a lot less than a fat legal settlement to have the Mafia deal with MercExchange, and Thomas Woolston. If only they were members of Prepaid Illegal Services, this never would have come to light.

      --
      The Uncoveror: It's the real news.
    4. Re:One more ... by Dirtside · · Score: 2
      I'll make billions.
      Yeah... of enemies. :)
      --
      "Destroy science and religion. Science would re-emerge exactly the same; but not religion." - Penn Jillette, paraphrased
    5. Re:One more ... by SoupIsGoodFood_42 · · Score: 2

      Why not go straight for the cash, and patent the CPU cycle. You could charge $1 per cycle. You'd only have to get someone to operate the latest P4 for a day and you'd be richer than Billy G.

  3. Patent for On-Line Auctions by dpme · · Score: 2, Insightful

    This one is interesting, since it does not seem, on the face of it, to be one of those patent squatters-key in this is that EBay approached the patent holder to try and buy the patent (as opposed to one of those out of the blue lawyer letters asking for millions) Will be interesting to see where this goes-DP

  4. This might actually help... by syd02 · · Score: 4, Insightful

    This might actually help in the effort to get people to rethink the role of the patent office in the digital era. I welcome this nonsense...the higher the profile (eBay!), the greater the impact.

    What's that saying? The worse the better?

    1. Re:This might actually help... by Bubblesculpter · · Score: 2, Interesting


      He should watch out what he asks for!!

      Consider this as a reverse kung-fu revenge strategy:

      • eBay suddenly pays out large bonus to employees, managers, etc. (enough to depelete eBay's cash reserves)
      • eBay racks up a lot of large (hundreds of millions) purchase orders. Make sure they are 30-day or 90-day billable.
      • All ebay employees move offshore with their billions in cash.
      • eBay signs over 100% of the stock shares to Woolston
      • Woolston now owns a bankrupt company with millions of dollars due for the orders, bills, debts, etc..


      Yeah, yeah, I know this would never work in practice.

      But I get pretty damn mad when people sue other people for working hard. Woolston could have easily spent a few months reading books and learning CGI programming, and then made an auction website. Instead, he had searched for funding and gave up, deciding to patent instead.

      Curses to him!!

      --
      www.Beyond7.com Insane modern art water sculpture.
    2. Re:This might actually help... by timeOday · · Score: 2
      Woolston could have easily spent a few months reading books and learning CGI programming, and then made an auction website. Instead, he had searched for funding and gave up, deciding to patent instead.
      But if he had gone ahead with the website, he would have been only one of thousands, with a very small chance of coming out on top (just like ebay was originally.)

      The lion's share of blame for these cases falls to our legislators and us as voters. If winning a game requires bad behavior, then the game is flawed and the rules should be changed. We can certainly hold in contempt those who willfully break the rules to get ahead, but this guy seems to be playing by the flawed rules of our system, and he will probably be a millionaire before it's all over.

    3. Re:This might actually help... by thogard · · Score: 2

      Can ebay tell millions of people that they have to shut down unless they patent law gets changed? A million people calling their congresscritters will get things changed real fast (and congress so wants a safe issue right now). Yes they could but they won't. They have enough cash to make this problem go away. All they need to do is figure out the costs.

  5. Face Value? by GearheadX · · Score: 2

    Is it just me, or does this look a little bit like some greedy guy who managed to sneak a patent in under everyone's noses during the dot-boom? The timing of this is rather suspect...

    What's next, anyway? Everybody and teir dog online is trying to get auction systems off the ground... This guy gonna sue em all?

    1. Re:Face Value? by EvilAlien · · Score: 3, Interesting
      You are just jealous that you didn't think of it first =P

      In all seriousness, this is akin to domain prospecting, at least if you stretch logic a little. We have a little nobody taking advantage of a loophole in an attempt to gouge an organization with deep pockets. The /. crowd may instinctively side with the little guy on things like this, but the businesses that employ us need to be protected from this kind of thing.

      --
      perl -e 'print $i=pack(c5, (41*2), sqrt(7056), (unpack(c,H)-2), oct(115), 10)'
    2. Re:Face Value? by sql*kitten · · Score: 2
      Is it just me, or does this look a little bit like some greedy guy who managed to sneak a patent in under everyone's noses during the dot-boom? The timing of this is rather suspect

      It's just you. From the article:

      he sued eBay in 2001 after negotiations broke down over the auction site's offer to purchase his patents.

      The company first contacted Woolston in 2000 with an interest in buying the patents.

      In other words, eBay knew about the patent and had read it and knew they wanted to licence it. Then they went ahead and used the technique anyway without completing the negotiation. Remember that a patent documents a single technique in great detail, it cannot be something vague and generic like "auctions" - he must have solved one very specific problem that eBay encountered and could not solve on their own.

      If eBay had infinged the patent inadvertantly and had by coincidence come up with something identical, that would be a whole different matter. But that's not what happened here.
    3. Re:Face Value? by blancolioni · · Score: 2

      In other words, eBay knew about the patent and had read it and knew they wanted to licence it. Then they went ahead and used the technique anyway without completing the negotiation.

      No, eBay were already using the technique, and then apparently discovered the patent or had it pointed out to them, and in what looks like simple self-preservation tried to buy it. I expect the negotiations broke down because the patent owner was asking too much for something that doesn't really apply to what eBay does (they both talk about online auctions, but the mechanics are very different). IMHO, IANAL, HAND.

    4. Re:Face Value? by EvilAlien · · Score: 2
      Actually, I own the patent for hitmen.

      You owe me $5.

      --
      perl -e 'print $i=pack(c5, (41*2), sqrt(7056), (unpack(c,H)-2), oct(115), 10)'
  6. Patent Pending for New Business Model by reimero · · Score: 2, Funny

    I have a new idea for a business model:
    Come up with a really generic idea, wait, say, ten years for another company to come up with the same idea and become successful and then sue them!

    Part 2 of the business model is to sue people who sue companies under the above premeses for patent infringement. Oh wow! Looks like I got my first target!

    --

    ----------

    Something clever
    1. Re:Patent Pending for New Business Model by D3 · · Score: 2

      Yes, but MY new business model will be to come up with a really generic idea, wait 11 years, and sue you for sueing them!

      --
      Do really dense people warp space more than others?
    2. Re:Patent Pending for New Business Model by Dun+Malg · · Score: 3, Insightful
      I have a new idea for a business model: Come up with a really generic idea, wait, say, ten years for another company to come up with the same idea and become successful and then sue them!

      If you put a little thought into it, one could come up with a whole raft of "speculative patents" and conceivably make a killing in the future. All it takes is a little thought.
      1. 1. come up with an idea for a money-making business that is currently impossible due to technological limitations.

      2. 2. patent the impossible notion
        3. wait for:
        1. (a)technology to make it possible

        2. (b)someone to start a business using some variation on your idea
          (c)them to start making money
        4. sue the bejeezus out of them for "stealing" your business model
      of course, the REAL trick to this is coming up with a business idea that can't be done yet, but WILL be possible before the patent expires. Here's one off the top of my head:
      "method of extending cellular communications" - a cell phone not in range of a cell tower instead merely connects to the nearest other cell phone which is in range and uses it as a relay for the call. I'm sure this idea has been thought of, but has it been patented yet? Could one write up a vague patent spec that would cover any future implementation of the concept? maybe...
      --
      If a job's not worth doing, it's not worth doing right.
    3. Re:Patent Pending for New Business Model by Reziac · · Score: 2

      Didn't the patent office used to require that you submit a working model, or at least blueprints for a working model, along with the patent application? What happened to that??

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    4. Re:Patent Pending for New Business Model by sacrilicious · · Score: 3, Funny

      1) File patent
      2) Sit back while patent is adopted
      3) Sue the crap out of everyone
      4) ???
      5) Collect underpants!

      .

      --
      - First they ignore you, then they laugh at you, then ???, then profit.
    5. Re:Patent Pending for New Business Model by Dannon · · Score: 2

      In other words:
      1) Prophet
      2) Throw Fit
      3) Profit!

      Hey, I figured out what ??? is!

      --
      Good judgment comes from experience.
      Experience comes from bad judgment.
    6. Re:Patent Pending for New Business Model by Dun+Malg · · Score: 2

      Didn't the patent office used to require that you submit a working model, or at least blueprints for a working model, along with the patent application? What happened to that??

      Well, since they've started allowing patents on bizarre crap like "business models", the blueprint requirement has become a bit weak. How does one draw a diagram of the operation of a business model? I'd like to see the "blueprints" for Amazon's One-Click patent.
      No, apparently all one needs to do is come up with a detailed, yet at the same time vague, description of what you claim is a Novel Concept. My cell phone patent should probably be "Method of Improving Cell Phone Service Through Cooperative Client Relay" followed by page after page after page of increasingly immaterial detail that, in the end, says "the call jumps from one cell phone to another until it can reach a tower". Then the first time Sprint, AT&T, T-Mobile, etc. implements it, POW! Welcome to my party! Cover charge is $10 million at the door!

      --
      If a job's not worth doing, it's not worth doing right.
    7. Re:Patent Pending for New Business Model by Reziac · · Score: 2

      You draw diagrams of business models in Visio, didn't you know that? :)

      "Detailed, yet vague" is exactly the impression I've got from the handful of recent patents I've read. Along with "but this is just [blank] plus a computer!"

      But, yeah, the sort of stuff being patented inherently dilutes the notion of requiring a working model, and that, as your "relay" example puts forth, is half the problem.

      Oh, I get it -- now I understand what a patent is!

      1) think up idea
      2) wait for someone else to implement it at their expense
      3) profit!!

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  7. Re:Please by Quasar1999 · · Score: 2

    Screw it, patent breathing...

    quicker return, everyone can be sued immediately...

    --

    ---
    Programming is like sex... Make one mistake and support it the rest of your life.
  8. why don't I.. by Joel+Ironstone · · Score: 5, Funny

    patent method of acquiring money solely from exploiting patent institutions. In this way I can sue everyone who tries to sue anyone for patent infringement. I can even sue anyone who tries to sue me.

    1. Re:why don't I.. by Neon+Spiral+Injector · · Score: 2

      I think there is prior art.

    2. Re:why don't I.. by JahToasted · · Score: 2

      Sorry, it would never hold up... too much prior art.

    3. Re:why don't I.. by ajs · · Score: 2

      There's about 600,000 instances of prior art :-)

    4. Re:why don't I.. by Anarchofascist · · Score: 5, Funny

      I have already filed a patent for the business process which involves patenting a business process for filing a suit against anyone filing a suit for patent infringement.

      And of course, before you think of it, I have also patented filing a patent for the business model of filing patents against people filing patents for any business process involving patenting a business process for filing a suit against anyone filing a suit for patent infringement.

      If that's not perfectly clear, I think you should just pay up now and avoid dragging this thing through the courts :)

      On second thoughts, I think I'll go away now and file a patent for the business model of patenting business models which are patents against the exploitation of business models. Or perhaps hire a good lawyer.

      --
      Once more unto the breach, dear friends, once more, Or close the wall up with our American dead!
    5. Re:why don't I.. by MoneyT · · Score: 2

      Patents have to be for something that is a physical invention.

      No they don't. Consider the patent currently being discussed. It's a patent for an electronic model of a real world business.

      Or what about the patenet of swinging on a swing?

      Or entertaining teh cat with a laser pointer?

      Or one click?

      --
      T Money
      World Domination with a plastic spoon since 1984
    6. Re:why don't I.. by OwnedByTwoCats · · Score: 2
      You still can't patent an idea or algorithm or thought

      Old school. Patent lawyers have gotten the law to distinguish between mathematical algorithms, which cannot be patented, and other algorithms, which can be. These are the Software patents.

      Whether an algorithm is mathematical or not is decided by how much each side in the controvoersy spends on lawyers.
    7. Re:why don't I.. by flonker · · Score: 2

      So all ebay needs to do is come up with a mathematician working on game theory to write a paper about an online auction.

  9. Prior art...? by Flaming+Foobar · · Score: 5, Informative

    University of Turku has had an online aucion server for 10 years or so. They used to e.g. auction all their old computer gear, instead of throwing them away. It was pretty popular, although I think they have taken the service offline now.

    --
    while true;do echo -e -n "\033[s\n\033[u\134_\033[B";done
  10. Ouch by wiredog · · Score: 5, Interesting

    The company [eBay] first contacted Woolston in 2000 with an interest in buying the patents. E-mail to that effect is expected to figure prominently in the case because it indicates that eBay knew about Woolston's patents but continued to infringe them, he said.


    The patent was filed in 1995, and other companies are already licensing it. Looks valid (under the current rules) too. The only way I see for eBay to keep from getting raped in the courts is for business method patents to be tossed entirely.

    Adobe getting hit with DMCA problems, Verizon and the RIAA going at it over DMCA, eBay with patent problems. If enough large and publicly traded companies get hurt by this sort of stuff it could be a good thing. In the long run.

    1. Re:Ouch by rjamestaylor · · Score: 2
      • Adobe getting hit with DMCA problems, Verizon and the RIAA going at it over DMCA, eBay with patent problems. If enough large and publicly traded companies get hurt by this sort of stuff it could be a good thing. In the long run.
      Actually, it strikes me as proper that a patent would be used to protect an individual's invention (in this case, a business process, which is allowed under current rules) against a large and otherwise unasailable (sp?) u:berCompany.

      If we have patents I'd rather that they be used to help the weak than to buttress the strong.

      --
      -- @rjamestaylor on Ello
  11. Re:Defense of patents by bluGill · · Score: 4, Informative

    You are confusing patents and trademarks. You must defend your trademarks, or you will lose it. With a patent you can let infringment slide as long as you want, and so long as the patent hasn't expired still sue. Case in point: the gif patent

  12. Prior art? by mekkab · · Score: 2

    IANAL, blah blah, but I remember auctions on usenet groups ages ago. Specifically for collectible goods!

    I haven't read their patent, but can't some silver-tongued "law-talking-guy" (simpsons ref) spin this patent into the ground?

    --
    In the future, I would want to not be isolated from my friends in the Space Station.
  13. Re:Defense of patents by Neon+Spiral+Injector · · Score: 2, Insightful

    That's false. It is trademarks you must defend. Patents one can sit on until someone else builds a market on your patent and then sue them. Not nice, but valid.

  14. I'll admit, I'm stupid. by laetus · · Score: 5, Insightful

    But am I missing something?

    Patenting an online auction in my mind is akin to patenting the idea a selling milk in refrigerated display cases, ie,

    This patent is for a system that creates a refrigerated marketplace for milk using a refrigerator in a store. The patent also covers the use of a payment-processing service to allow purchasers to pay for the goods.

    I mean, where's the creativity that patents are supposedly supposed to protect? In my mind, virtually any business transaction can be ported to the internet. It would be like someone patenting sales calls over a telephone when telephones were first invented.

    --

    "We're sorry, but the website you're trying to reach has been disconnected."
    1. Re:I'll admit, I'm stupid. by garoush · · Score: 2

      I mean, where's the creativity that patents are supposedly supposed to protect?

      The creativity is in phase 2 where they are going to use the patent to auction off eBay -- on eBay.

      --

      Karma stuck at 50? Add 2-5 inches.. err.. 2-5x Karmas Count to your pen1es.. err.. Karma all naturally and private
    2. Re:I'll admit, I'm stupid. by Ioldanach · · Score: 5, Funny
      But am I missing something?

      Patenting an online auction in my mind is akin to patenting the idea a selling milk in refrigerated display cases, ie,

      What, you mean something like this patent?

    3. Re:I'll admit, I'm stupid. by D3 · · Score: 3, Informative

      Yes, but your example is just for the physical refigerator case not the "business process" of putting a product in a place where potential customers can see it, buy it, etc.

      --
      Do really dense people warp space more than others?
    4. Re:I'll admit, I'm stupid. by Anonymous Coward · · Score: 3, Interesting

      Man, you just scared the hell out of me, this is madness...

    5. Re:I'll admit, I'm stupid. by arkanes · · Score: 2

      Ah, but your forgot the most important part - The patent also covers the use of a payment-processing service to allow purchasers to pay for the goods - with a computer.

    6. Re:I'll admit, I'm stupid. by Tokerat · · Score: 2

      I heard about someone doing that as a joke a while back.

      eBay apparently sold for $2.50.

      The autioner was subsiquently punished.


      Oh, and just for recent /. sake:
      3. PROFIT!!!

      --
      CAn'T CompreHend SARcaSm?
    7. Re:I'll admit, I'm stupid. by jafuser · · Score: 2

      I wonder if anyone has a patent for the process of using a muscular contraction in the lower abdomen for altering the local internal pressure of an organic cavity with a large osmotic surface area, in order to exchange oxygen and carbon-oxygen molecules between an enclosed dynamic fluid system and the surrounding environment.

      --
      Please consider making an automatic monthly recurring donation to the EFF
  15. and, of course... by tomzyk · · Score: 2, Funny

    Step 3: PROFIT!!!

    --
    Karma: NaN
    1. Re:and, of course... by agallagh42 · · Score: 2, Informative

      It's from an episode of South Park, where there were little creatures called "Underpants Gnomes". Their business plan was:

      1. Steal underpants
      2. ???
      3. Profit!!

      They just hadn't quite figured out step two yet...

      --
      Carpe Cerevisi - Seize the Beer
  16. More proof that patent law needs tinkering by fudgefactor7 · · Score: 3, Interesting

    Personally, I think the "cure" is for patent law to be modified so that an absolute description is needed for a patent to be validly claimed rather than the woefully ambiguous "a method of performing auctions..." What kind of crap is that? Can I patent "..a method for transmitting gaseous oxygen in a liquid medium..." then sue everyone for having blood? Of course not, but that's just as silly (ok, so actually that's more silly, but you get my point.)

    Shakespear was right: First thing we do, kill all the lawyers. They're the reason this sort of mess is around in the first place.

    1. Re:More proof that patent law needs tinkering by mikeage · · Score: 2

      If anyone is wondering what the lawyer line is about, check out http://www.spectacle.org/797/finkel.html

      --
      -- Is "Sig" copyrighted by www.sig.com?
    2. Re:More proof that patent law needs tinkering by jelle · · Score: 2

      > "..a method for transmitting gaseous oxygen
      > in a liquid medium..." then sue everyone
      > for having blood?

      Actually, oxygen is not gaseous when in your blood, but bound to hemoglobin.

      --
      --- Hindsight is 20/20, but walking backwards is not the answer.
  17. Inventor AND Patent Lawyer by ch-chuck · · Score: 2, Insightful

    Edison is supposed to have said "Genius is 1% inspiration and 99% perspiration" - today it's 1% inspiration and 99% legalese and marketing.

    --
    try { do() || do_not(); } catch (JediException err) { yoda(err); }
  18. Re:Defense of patents by Pulzar · · Score: 2

    I suggest you read the article:

    Woolston took steps to protect his patents almost immediately after he got his first one in 1998--No. 5,845,265, covering a method of creating a marketplace for used or collectible goods over the Internet.

    I.e. he was aware of patent infringments, and he has acting on them for several years now.

    (Not that it really matters -- as others pointed out, your argument was related to trademarks, not patents)

    --
    Never underestimate the bandwidth of a 747 filled with CD-ROMs.
  19. Re:Please by forged · · Score: 2

    Erhmm, heard of "prior art" ;)

  20. Tedious by cd-w · · Score: 2, Insightful

    This is getting tedious. There is a patent article on Slashdot nearly every day now. Linux was absolutely right when he said that we should just ignore software patent issues. The vast majority of patents are never enforced or are overturned in any case.

    1. Re:Tedious by Myco · · Score: 2

      Yeah. That guy owes me royalties for my "method for anthropomorphizing software entities and attributing quotes of their authors to said entities."

  21. Sneaking in patents by nuggz · · Score: 2

    If you define "sneak a patent in" as in apply for a patent half a year before ebay was founded, yes he snuk it in.
    Read the article.

  22. Edison patented everything by wiredog · · Score: 3, Interesting

    and defended those patents ferociously. AT&T even more so. This is nothing new.

    1. Re:Edison patented everything by MoneyT · · Score: 2

      The difference is, he patented a means of using electricity to provide a constant light source. The light bulb was innovative, and edison actualy had a physical contruct of the invention. This guy has patented the obvious and has no physical contruct (hell he couldn't even make his own business model work)

      --
      T Money
      World Domination with a plastic spoon since 1984
  23. He has a case (legally) by gosand · · Score: 4, Insightful
    From the looks of the article (you did read the article, didn't you?) it seems that he had the "online auction" idea patented before eBay went into business. There were even negotiations for eBay to buy his patents. But that fell through, and eBay went ahead infringing on his patents.

    So LEGALLY, it appears that eBay is at fault. This doesn't address the fact that there is such a huge hole in the entire software patent/intellectual propterty concept.

    Legally, this guy has a claim, but by all rights he shouldn't. This is exactly why patenting ideas and business models is stupid. This guy is a lawyer (patent attorney no less), and has gone after priceline.com and goto.com for infringements on some of his other patents.

    As long as the system is broken, people will take advantage of it.

    --

    My beliefs do not require that you agree with them.

    1. Re:He has a case (legally) by benwb · · Score: 3, Informative

      You're thinking of trademarks

    2. Re:He has a case (legally) by ebh · · Score: 2

      Interesting situation: eBay's IP lawyers tell management that they MAY be infringing someone else's patent. They contact the patent holder but negotiations break down. At this point, nobody has established legally that infringement is indeed occurring. Is it really eBay's responsibility to enjoin itself from further activity that MAY be infringement?

      I think eBay did the right thing in approaching the patent holder, and I think they're also doing the right thing in waiting for the courts to sort it out. But, IANAL, so I don't know if refusal to voluntarily enjoin itself weakens eBay's position.

      (On a side note, I always thought that it should be possible to contest the novelty of a patent by bringing in a competent engineer who is unfamiliar with the patent, and pose to him or her the problem that the patent solves. If they come up with the same solution in a short time, the patent fails the novelty test.

      I got this idea from Hayes's patent on toggling command mode by typing +++ surrounded by one second of inactivity before and after. Around the time they patented that [unbeknownst to me], I invented and implemented almost exactly the same thing for a LAN product I was working on. Had the company survived, they would probably have been sued by Hayes over it, and given the timeframe, Hayes's claim would have had merit. But this doesn't seem to me to be a particularly clever solution--anyone could have thought it up.)

    3. Re:He has a case (legally) by Pogue+Mahone · · Score: 2
      You have to protect your patent... otherwise it is null and void.

      Nope, sorry, that's trademarks. With patents you can sue all you like.

      Anyway, looks to me like E-Bay can see that the validity of the patent is v. shaky, but didn't want to start the fight, so to speak.It's probably not financially viable to initiate the court case to have it struck down. Better to just "infringe" and wait for the patent holder to sue. That way it only costs money if he does sue.

      --
      Every bloody emperor has his hand up history's skirt [Peter Hammill/VdGG]
    4. Re:He has a case (legally) by anthony_dipierro · · Score: 2

      Interesting situation: eBay's IP lawyers tell management that they MAY be infringing someone else's patent. They contact the patent holder but negotiations break down. At this point, nobody has established legally that infringement is indeed occurring. Is it really eBay's responsibility to enjoin itself from further activity that MAY be infringement?

      Yes. Ignorance of the law is no excuse.

    5. Re:He has a case (legally) by ebh · · Score: 2

      But is it realy ignorance of the law? Obviously eBay knows they can't infringe other people's patents. What hasn't been established at that point is that the patent is actually being infringed.

      If there's any ambiguity in the way the patent is written, or what it describes, then it could be up to the courts to decide whether infringement actually occurred, and that wouldn't happen until the patent holder initiated litigation.

      I wouldn't be in business if I had to do patent searches on every feature of my product and every aspect of its implementation, whether my taking bathroom breaks is a patented business method, etc. (stipulated, I do have to do due diligence on anything I ship, but you get my point), which is why I really hope that the burden of proof lies with the patent holder.

      BTW, did you used to work at HP-FPK?

    6. Re:He has a case (legally) by anthony_dipierro · · Score: 2

      But is it realy ignorance of the law?

      I'd say yes. They know exactly what they're doing. They know exactly what the patent says. The only question is what a judge will decide. They asked a lawyer, and the lawyer was unable to make a determination.

      If there's any ambiguity in the way the patent is written, or what it describes, then it could be up to the courts to decide whether infringement actually occurred, and that wouldn't happen until the patent holder initiated litigation.

      Well, they could have filed for a declaratory judgement.

      I wouldn't be in business if I had to do patent searches on every feature of my product and every aspect of its implementation

      I was under the impression that they had direct knowledge of the patent. Ignorance of the patent is an excuse, at least with regard to the willful infringement part. I don't think ignorance of whether or not you're actually infringing on the patent is, although, I'm a little less sure of myself at this point.

      BTW, did you used to work at HP-FPK?

      Yep. Now who's this? :)

  24. The real problem by Midnight+Thunder · · Score: 3, Informative
    There are a few problems with the patent system. Amongst them are:
    • Having to pay huge fees for patent searches. Because of this it usually ends up being cheaper to send in a patent application and then let someone else scream prior art.
    • Now with international law protecting patents of other countries, it just became even more complicated to make sure that there was no prior art.
    • The obvious is being patented (this is obvious to /. readers). Then again, when you aren't working in a given field what is obvious will vary. This means that we really need a means of public screening of patents.
    There is no such thing as a perfect system. Anything is open to abuse, so there needs to be guidelines and reviews for a system to be run as close to the original intent as possible.
    --
    Jumpstart the tartan drive.
    1. Re:The real problem by garcia · · Score: 2

      funny, EBay tried to contact this man before, there is email proof.

      funny, I can goto the page and search for any patent I want. Just like everyone else here that searchs for it.

      I guess you work for /., you are unable to do a simple search before you file a submission.

  25. Obviousness by nuggz · · Score: 5, Interesting

    The trust issue is the key to the online patent, not the auction.

    Online auctions are obvious, a trustworthy auction is the innovation.

    1. Re:Obviousness by Titusdot+Groan · · Score: 2
      It's not an innovation -- brick and mortar auction houses do all of this -- print catalogues, certify authenticity, keep items in escrow until they have the money, etc. etc. etc.

      I really wish the Supreme Court would just come out and say "computerizing a common real world practice is not innovative" and end this whole charade.

    2. Re:Obviousness by frovingslosh · · Score: 2

      I'm not folowing what e-bay is being sued for then. With all of the fraud and shilling, which e-bay tolerates as long as it doesn't get a lot a publicity, they are hardly trustworthy.

      --
      I'm an American. I love this country and the freedoms that we used to have.
    3. Re:Obviousness by nuggz · · Score: 2

      It is only patentable if you get non obvious results from the translation.
      If all you get are the obvious results, then there is no patent, if something new and unexpected happens, you can get a patent.

  26. eBay Knew About the Patents by totallygeek · · Score: 2
    I have a problem with those hanging eBay out to dry because they have been working on buying these patents for two years.


    Had I been smart enough to start eBay way-back-when, I would not have had the resources to examine patents, I would have just programmed the site and put up the business. As it grew, I might have been notified about the patent, and from there consulted a lawyer. There is no way I would have shut down, saying, "Well, I have found out about a possible infringement, and while in the process of speaking with a patent holder we are out of business." The company by this time is multi-million dollars a year.


    When does the American dream come through? If I have an idea, I want to protect anyone that had a like idea, but don't kill my business while I am working with the original idea holder. All I can see from this is money in lawyers' pockets.

  27. Prior Art by night_flyer · · Score: 2

    I remember auctions on Fidonet a looooooong time ago, which definitally falls under the realm of "a computerized market for used and collectible goods"

    --


    Thanks to file sharing, I purchase more CDs
    Thanks to the RIAA, I buy them used...
  28. Somebody better sue the patent office soon by crovira · · Score: 5, Informative

    (When did the USPO go "For Profit?" Who was in power, albeit not in possession of any higher cognitive abilities?)

    This type of mandated idiocy won't stop until the USPO get sued for some really big bucks and whoever issued the patent, reviewed it, supervised and made money from letting it escape it, gets their ass fired.

    I think this might be the case that breaks the camel's back. ebay should sue the patent office for interfering with their normal existing legal business operations.

    In fact, it might be fun to try taking out a patent on the information recording portions of the patenting process and sue the USPO for patent violation.

    Bill Gates was right in his 1991 memo. The application of software and process patents will bring the very concept of innovation to a stand-still.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
    1. Re:Somebody better sue the patent office soon by smoondog · · Score: 2

      The application of software and process patents will bring the very concept of innovation to a stand-still.

      Funny. I guess its just okay for him to idle the industry....

    2. Re:Somebody better sue the patent office soon by truesaer · · Score: 2
      You can't sue the patent office for some "really big bucks"....they are immune from civil liability because they're the government.


      The only thing you could do is claim that their actions are unconstitutional, but that is a bit of a crapshoot since the constitution clearly allows IP laws, but is vague on what they should be. Its basically just the opinion of a judge at this point. Here is the constitution:


      The Congress shall have Power . . . To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries . . .


      So the only question is whether or not a business process can be invented (it seems logical that it could be). Then, it is simply a matter of whether congress chooses to protect them (which it seems to have the broad ability to do).

    3. Re:Somebody better sue the patent office soon by MisterBlister · · Score: 2
      The application of software and process patents will bring the very concept of innovation to a stand-still. Funny. I guess its just okay for him to idle the industry....

      For all of Microsoft's many faults, abuse of the patent system has never been one of them. Yes, they have many patents filed, but when is the last time you've heard of them using those patents in a negative way?

    4. Re:Somebody better sue the patent office soon by poot_rootbeer · · Score: 2


      Sorry, can't sue the Patent Office.

  29. Another business method someone should patent by Snarfangel · · Score: 3, Funny

    "A method of sending out unsolicited mass electronic mailings to email addresses of individuals who have expressed absolutely no interest in the product or service being offered. Such 'spam' is to consist exclusively of worthless potions, creams, and pills for enlarging or reducing areas of the body, pyramid schemes to get rich quick, offers for clubs no one in their right mind would join, and letters from deposed heads of state begging you to help move money from poor African nations."

    If only someone would patent *that* and sue the #$%@! out of all of the infringers!

    --
    This tagline is copyrighted material. Please send $10 for an affordable replacement.
  30. IANAL by totallygeek · · Score: 2
    I
    Am
    Not
    A
    Lawyer


    Click here for a glossary of these "net" terms.

  31. Re:Defense of patents by nuggz · · Score: 2

    Read the article.
    He was in discussions with Ebay, they were aware.

    He's also been in contact with other online auction sites.

  32. Re:Defense of patents by bwt · · Score: 5, Informative

    It is true that a trademark must be defended or lost, but that does not imply there are no "snooze and lose" aspects to patents. In fact, the original poster is somewhat correct. The doctrine of laches. Patentees against whom the laches defense has been successfully invoked are barred from collecting only those damages that accrued prior to filing suit.

    The defense contains two elements:
    1) The patent holder delayed bringing suit and that delay was unreasonable and inexcusable; and
    2) The alleged infringer suffered materially prejudicial harm from the delay.

    The doctrine is supported by caselaw: A.C. Auckerman Company v. R.L. Chaides Construction Co., 960 F.2d 1020 (Fed. Cir. 1992), citing Lane & Bodley Co. v. Locke, 150 U.S. 193 (1893).

  33. Why is that not patentig an idea by Khalid · · Score: 2

    Can someone explain how is that not the patenting of an idea without any regard to it's implementation. So what this patent means is that you can't create an auction system whatever your implementation is !?

    Are ideas really non patentables ?

    1. Re:Why is that not patentig an idea by PhilHibbs · · Score: 2

      Read the patent, it talks about "vetted bailee" and other implementation details.

      It looks to me like the patent is pretty specific, and specifies that the goods change hands but stay on the market, so I buy something from you, and then increase the price but leave it on sale "thereby to allow the purchaser to speculate on the price of collectibles in an electronic market for used goods while assuring the safe and trusted physical possession of a good with a vetted bailee". Sounds like some trusted third party safeguards the physical goods while the transaction is in progress too. Not much like ebay, really, I think this guy is clutching at straws. Then again, IANAL.

  34. *sigh* by Quixadhal · · Score: 5, Interesting

    Does no one think of the effect their frivolus patents might have on the industry as a whole? So, let's assume Woolston does indeed have an enforceable patent, and he manages to sue eBay and either get a big chunk of cash, or force them to change their business model to avoid infringement... does this guy realize the potential damange he can cause to the industry as a whole? Does he care?

    Probably not. Personal greed is the American Way. It's more important that I get MY piece of the pie, even if it means letting the rest of the pie spoil -- at least I got mine!

    eBay is one of those *few* examples of a pure internet business that is doing well and making money. Given the state of the economy today, I feel this kind of attempt is almost criminal in intent. It's pretty close to sabotage for this corner of the technology sector, way to go! Make sure your lawyer asks for the firstborn of their CEO too!

    I'm pretty certain that the exact implementation details of eBay's software (the algorithm, if you will) are pretty different than what this guy envisioned for this baseball trading-card exchange system. I'm quite sure that had he written software to do this, there would be no copyright infringement between the two... and there's the problem. He's claiming an overly broad patent on an idea, when he probably only has the right to an algorithm. Yeah, *I* had ideas about online trading in the 1980's too buddy, so did half the people who had even heard of the internet (or how about fidonet? or just plain bbs's???). Anyone remember the online trading games from those days? If anything, THOSE probably pre-dated his scheme -- they just didn't handle real products.

    I got called to pay my "voting tax" next week (Jury Duty), and I would dread being on a case like this. While common sense would have me acquit on the basis that a broad "patent" like this is a mockery of the Office, and that even if eBay were abusing it with intent, I'd still not have much sympathy for this guy -- it's still the law, and I'd still have to vote according to what the law says, not what it means (since laws are no longer by the people -- if you need a lawyer to explain a law, there's something WRONG!).

    1. Re:*sigh* by Consul · · Score: 2

      I got called to pay my "voting tax" next week (Jury Duty), and I would dread being on a case like this. While common sense would have me acquit on the basis that a broad "patent" like this is a mockery of the Office, and that even if eBay were abusing it with intent, I'd still not have much sympathy for this guy -- it's still the law, and I'd still have to vote according to what the law says, not what it means...

      I would have to differ with this argument here. In my mind, a juror has the power to overturn a bad law with his/her verdict of "not guilty".

      If someone is being sued/prosecuted over a bad law, and you feel they did nothing wrong, you, as a juror, do indeed have the power to have that law re-examined, and possibly repealed. The problem is, you need to get the other jurors to understand agree with you.

      A verdict of "not guilty" does mean a lot in these kinds of cases.

      --

      -----

      "You spilled my egg... I needed that egg."

    2. Re:*sigh* by donutello · · Score: 4, Insightful

      Disclaimer: Personally, I think that this patent is ridiculous and obvious and therefore should not have been granted. For the sake of this discussion, let's assume it was some other kind of thing that was patented and infringed upon by eBay.

      Probably not. Personal greed is the American Way. It's more important that I get MY piece of the pie, even if it means letting the rest of the pie spoil -- at least I got mine!


      What a bunch of crap! There is nothing wrong or immoral with asserting your rights. There's two models of society: One where everyone works only for the greater good, not caring about personal gain. The other where everyone focuses only on satisfying their personal goals.

      The first is the communist system. It's a great idea in principle, but as anyone older than 15 will tell you, it just doesn't work.

      The other is the capitalist system we are in - which has been proven to work great. Individuals assert their own rights and work to benefit themselves and in doing so, benefit society at large.

      eBay is one of those *few* examples of a pure internet business that is doing well and making money. Given the state of the economy today, I feel this kind of attempt is almost criminal in intent. It's pretty close to sabotage for this corner of the technology sector, way to go! Make sure your lawyer asks for the firstborn of their CEO too!

      Someone fighting for CEO's rights - on Slashdot! That's when I begin to think this is a troll. eBay is a business. The CEOs and shareholders are getting rich off what they do. Now, if it turns out that they are doing so by infringing on someone elses patents, then it should be the patent holder not the CEO's who should be profiting from it. If as you say, it would be impossible for eBay to succeed without infringing the patent, I see nothing wrong with eBay sharing some of their profits with the inventor who they owe their success to.

      --
      Mmmm.. Donuts
    3. Re:*sigh* by Storm+Damage · · Score: 5, Informative

      Both of the above statements are wrong. The Jury does not have the power to have a law re-examined or repealed by issuing a verdict. However, the Jury DOES have the power, and the right, to find a defendent "Not Guilty" for any reason. Judges and Attorneys don't really like this, and Judges will usually try to dismiss Jurors if they express disagreement with the law as written before the trial, but once the Jury issues a Not Guilty verdict, they're pretty much stuck with it.

      This actually happens, too. The most famous case in which the Jury blatantly refused to apply the law was the trial of William Penn for sedition in London in 1670. The Magna Carta reserved the right of conviction to Juries only, and a few brave men withstood imprisonment and starvation in the face of an angry judge trying to force them to change their verdict. The jurors, however, would not relinquish their right under Common Law to decide the verdict, and would not find a man guilty for peacefully holding a religious assembly, Conventicle Act or not.

      William Penn later came to America, and founded Pennsylvania. He advocated the idea that a panel of Juror-peers would be the final arbiter of the law, and this was encoded into the U.S. Constitution and Law in this country. The institution of the Jury as the final check/balance on the Government has been eroded over time in this country, but there are efforts to bring it back. The Fully-Informed Jury Association is one organization which seeks to educate Jurors of their rights, responsibilities, and powers, as well as restore their political function. Common Sense Justice is an organization in South Dakota with a FIJA amendment on the state election ballot this fall. Read up on Fully-Informed Juries, and if you are called to serve as a Juror, take your rights and responsibilities seriously.

    4. Re:*sigh* by poot_rootbeer · · Score: 3, Insightful

      it's still the law, and I'd still have to vote according to what the law says, not what it means

      This is a common misconception. If juries were obliged to base their decisions on literal interpretations of the law, what would be the point of having juries at all? Juries are made up of people, and people have common sense. This is intentional.

      Of course, if the attorneys on either side find out you know about this during juror selection, you won't be serving on that case -- lawyers don't like presenting to unpredictable jurors.

    5. Re:*sigh* by rossz · · Score: 3, Informative
      Yes, the jury has the right (and in my opinion, the duty) to disregard a bad law.

      "...the jury has the power to bring in a verdict in the teeth of both law and facts," Oliver Wendel Holmes, 1920 Homing v DC, 244 US 135.

      "...The jury possesses "the undisputed power to acquit, even if its verdict is con- trary to the law as given by the judge and contrary to the evidence." 1969 U.S. v Moylan, 417 F2d 1002

      "...The jury has an "unreviewable and reversible power... to acquit in disregard of the instruction on the law given by the trial judge." 1972 U.S. v Dougherty, 473 F2d 1113

      --
      -- Will program for bandwidth
    6. Re:*sigh* by Consul · · Score: 2

      Both of the above statements are wrong. The Jury does not have the power to have a law re-examined or repealed by issuing a verdict.

      Okay, I did word that wrong. I did indeed mean, that the jury can disregard a law they feel is bad, and return the "Not Guilty" verdict.

      But like you said, the judges and attorneys don't like this, and will use all of their power to try to smite you to the lowest pit of hell if you exercise what is essentially a fundamental right.

      I am, of course, not a lawyer. :o)

      --

      -----

      "You spilled my egg... I needed that egg."

    7. Re:*sigh* by OwnedByTwoCats · · Score: 3, Insightful
      I got called to pay my "voting tax" next week (Jury Duty), and I would dread being on a case like this. While common sense would have me acquit on the basis that a broad "patent" like this is a mockery of the Office, and that even if eBay were abusing it with intent, I'd still not have much sympathy for this guy -- it's still the law, and I'd still have to vote according to what the law says, not what it means (since laws are no longer by the people -- if you need a lawyer to explain a law, there's something WRONG!).

      Ahhh, but "obviousness" is a valid defense against a claim of infringement. _Proving_ obviousness seems harder.

      And, since you read slashdot, you obviously know too much to be allowed to sit on jury for a software patent infringement case. One side or the other would insist you go...
    8. Re:*sigh* by nathanh · · Score: 2
      The first is the communist system. It's a great idea in principle, but as anyone older than 15 will tell you, it just doesn't work.

      Tell that to China.

      The other is the capitalist system we are in - which has been proven to work great.

      USA is socialist, not capitalist.

    9. Re:*sigh* by Elwood+P+Dowd · · Score: 2

      What a bunch of crap! There is nothing wrong or immoral with asserting your rights. There's two models of society: One where everyone works only for the greater good, not caring about personal gain. The other where everyone focuses only on satisfying their personal goals.

      Uh, what a bunch of crap. Sure, you've nailed the difference between communism and capitalism, but you didn't read your Ayn Rand close enough. (I've never read any Ayn Rand, so I don't hold that against you.) In *all* systems, *everyone* focuses on satisfying personal goals. If you want all the starving masses to have food, that is still a personal goal. In a communist system, the government is a powerful force that may be used to satisfy those goals. In an ideal (Randian) capitalist system, the government is not a powerful force that may be used to satisfy those goals.

      The fact that we have a government granting legal rights to intellectual property of this type shows very well that we do not have the second model of society you describe. I understand you agree that this is a frivolous patent. The patent holder is using the might of the US government to control other people's behavior. To a capitalist, that is immoral. We have accepted this level of immorality when it means that we gain access to new technologies.

      It would be ok for the patent holder to limit us if the patent were good, and it would not be ok for the patent holder to limit us if the patent were bad. Just because he has the US Federal Marshals on his side doesn't make it morally ok.

      P.S. I'm anything but a Randian capitalist, but it always upsets me when I see bullshit in action. If you're going to spout the capitalist line, do it right.

      --

      There are no trails. There are no trees out here.
    10. Re:*sigh* by donutello · · Score: 2

      Jeez. Regardless of the system, the governments role continues to be to uphold the law and protect individual and collective property rights. In this case, eBay would be infringing upon the patent holders property rights and the government would play a valid role in interfering there.

      Anyway, my point was not about Randian capitalism at all (I haven't read any Rand either). My point was about the implicit shame in asserting ones individual rights against the greater good. The author of the parent post said the patent holder should give up his rights because that would somehow lead to the greater good (i.e. prop up eBay in a faltering economy). That is utter nonsense and causing someone to give up their own rights (either by force of law or by collective guilt) is counterproductive as the communists discovered because it removes the incentive to produce.

      --
      Mmmm.. Donuts
    11. Re:*sigh* by Elwood+P+Dowd · · Score: 2

      Um, yeah. On rereading the original post, I see exactly what you mean.

      He wasn't saying it was wrong to attack ebay because there was something wrong about the application of IP, he was simply saying that it was wrong to attack ebay because they employ people and are in the black. Your post addressed that directly and appropriately. I'll go sit down.

      --

      There are no trails. There are no trees out here.
    12. Re:*sigh* by Storm+Damage · · Score: 2

      I've looked up this practice, and it appears to be the same practice that is mentioned on the FIJA site as an argument in favor of fully-informed Juries (or at least the argument that fully-informed Juries are bad for defendants because bigoted juries might return unfavorable verdicts). That is, if a jury returns a horrible verdict to the detriment of the defendent, the judge still is empowered to show leniency to the defendent. I can't find any mention of this ever being used in any way than on the defendant's behalf. If you can cite a case to the contrary, I'd be very interested to see it.

    13. Re:*sigh* by UnknownSoldier · · Score: 2

      > However, the Jury DOES have the power, and the right, to find a defendent "Not Guilty" for any reason.
      > William Penn advocated the idea that a panel of Juror-peers would be the final arbiter of the law, and this was encoded into the U.S. Constitution and Law in this country.

      Correct. Here's the relevent parts:

      Article III
      Clause 3: The Trial of all Crimes, except in Cases of Impeachment, shall be by Jury; and such Trial shall be held in the State where the said Crimes shall have been committed; but when not committed within any State, the Trial shall be at such Place or Places as the Congress may by Law have directed.

      And

      Amendment VII

      In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise reexamined in any court of the United States, than according to the rules of the common law.

      Cheers
      --
      The founding fathers were lawyers, yet they never went to law school !

  35. NASDAQ as prior art by GGardner · · Score: 4, Interesting


    The Nasdaq has been running on-line "auctions" for quite some time now. The patent claims the autions are for "used goods and collectibles", and stocks probably don't count as "used goods or collectibles" (except for my portfolio...) but come on, that's a pretty small difference...

    1. Re:NASDAQ as prior art by 0WaitState · · Score: 2

      The Nasdaq has been running on-line "auctions" for quite some time now. The patent claims the autions are for "used goods and collectibles", and stocks probably don't count as "used goods or collectibles" (except for my portfolio...) but come on, that's a pretty small difference...

      Bzzt... wrong. Nasdaq is not an auction system. In between the buyers and sellers you have market makers who create "liquidity" (translation: milk the spread between bid and asked price). When you sell a stock on nasdaq, you're selling to a market maker, who then turns around and sells it to a buyer, usually within a second. This is one of the reasons Nasdaq's volume numbers are considered inflated. Sound needlessly complex, and easily replaceable by a transparent auction system? Yes, but then how would insiders milk the system for a guaranteed profit on every trade?

      --

      Remain calm! All is well!
  36. use it or lose it by forkboy · · Score: 2

    Isn't there a clause in patent law about making an effort to protect your idea or losing rights to it? Or am I thinking of trademark/copyright law?

    It sounds to me like this guy was sitting on his patent until the time was right to sue, which should force him to lose his rights to the idea. (the ethics of which I will not go into as I'm in agreement with 99.999% of /. on the concept of software patents)

    --
    This message brought to you by the Council of People Who Are Sick of Seeing More People.
  37. so... by stinky+wizzleteats · · Score: 2

    In this brave new age of patent ambushes, I need to be reminded...

    Tell me again how using open source's evil viral licensing might one day affect your company's valuable IP and business processes at some future date?

  38. Nonsense by pubjames · · Score: 2


    If we can patent "business methods" that come about because of new technology, what's to stop me doing a bit of crystal ball gazing and patenting things that might be possible in a few years time?

    Let's see... In a few years time, mobile phones with video are likely to become commonplace. So, what new business method might arise because of that? OK, how about this. Florists where you can phone your order through and actually see the actual bunch of flowers that are going to be sent in your name, and perhaps make changes to the arrangement via the phone. That will probably happen. And now I can patent it!

    Hey that was easy. Think of an idea and sit back and wait. In a couple of decades I might be richer than Bill Gates!

    1. Re:Nonsense by lunenburg · · Score: 3, Informative

      You kid, but I remember a story from a year or so ago about this guy who has made his career by looking for trends in industry, filing a very broad, generic patent, and ammending it to become more specific as the technology solidifies, and going after the people who invented the technology for patent royalties.

      I searched the archives and google, but wasn't able to find a link to the story. Maybe someone else remembers the story, too.

  39. Ebay wasn't the first by nuggz · · Score: 2

    I won't argue that ebay wasn't the first auction site, but I'm not aware of any back in April 95, which you would need to be prior art to his patent.

  40. Re:Bar code scanners and printers? by night_flyer · · Score: 2

    BUSTED! Im QUITE sure Ebay doesnt have items 3&4, they dont deal in bar codes because they dont deal with the items directly.

    1. A system for presenting a data record of a good for sale to a market for goods, said market for goods having an interface to a wide area communication network for presenting and offering goods for sale to a purchaser, a payment clearing means for processing a purchase request from said purchaser, a database means for storing and tracking said data record of said good for sale, a communications means for communicating with said system to accept said data record of said good and a payment means for transferring funds to a user of said system, said system comprising:

    a digital image means for creating a digital image of a good for sale;

    a user interface for receiving textual information from a user;

    a bar code scanner;

    a bar code printer;

    a storage device;

    a communications means for communicating with the market; and

    a computer locally connected to said digital image means, said user interface, said bar code scanner, said bar code printer, said storage device and said communications means, said computer adapted to receive said digital image of said good for sale from said digital image means, generate a data record of said good for sale, incorporate said digital image of said good for sale into said data record, receive a textual description of said good for sale from said user interface, store said data record on said storage device, transfer said data record to the market for goods via said communications means and receive a tracking number for said good for sale from the market for goods via said communications means, store said tracking number from the market for goods in said data record on said storage device and printing a bar code from said tracking number on said bar code printer.

    --


    Thanks to file sharing, I purchase more CDs
    Thanks to the RIAA, I buy them used...
  41. Would you feel differently by wiredog · · Score: 2

    if eBay had bought the patent, and then filed lawsuits?

  42. Re:Please by John+Biggabooty · · Score: 3, Funny

    I hold 26 patents, and you are all infringing on them. The following are my intellectual property, so stop using them without paying licencing: A,B,C,D,E,F,G,H,I,J,K,L,M,N,O,P,Q,R,S,T,U,V,W,X,Y, and Z. My patent for the comma is pending, so be ready to pay for that, too.

    --
    That's Bigboo TAY! TAY!
  43. Patent seems a wee bit differnt.... by jsimon12 · · Score: 2

    It covers collectible or used goods auctioing which is automated in a local area. Sounds like it is a U-Scan type system for a small auction house or something at the mall. Not a WWW enabled auctioneer. Gotta love it when people patent things and don't do anything other then sue, isn't America great. Oh well back to work on that "Bubble Sort" Patent of mine.

  44. it took him 4 years? by randomErr · · Score: 2

    Why did it take him 4 years since he first got the patent to do something about? He got his first patent in 1998, and in 2000 eBay came to the guy and tried buy access to his patent.

    eBay didn't get what they wanted so they went out, improved on the concept[not the patent] and made money.

    Sounds like this is more about sour grapes then patent infringement.

    --
    You say things that offend me and I can deal with it. Can you?
  45. Re:Defense of patents by nuggz · · Score: 2

    Different dates.
    He applied before those others existed, it took them 3 years to approve/grant his patent.

    He can't do anything to infringers until the patent has been granted.

  46. An entirely new business model! by billwie · · Score: 2, Insightful

    I think we are looking at an entirely new business model here and a new field that is rapidly growing! Move over dot coms here come the big players of the 21st century and the beauty of it is that you don't have to work to meet your goals all you have do is have an idea and get the patend first.

    I wonder if this is not the single largest problem with a service economy, defining the value that you produce. Put another way, if this guy sold shares in his company, MercExchange, publicly would you buy them? And what would that say about you?

  47. Games? by hrieke · · Score: 2

    Okay, so what about online games?

    In some MMRPG ther are market places where characters meet, sell items to one another or have items up for bid.

    Even though it might be for an imaginary currency for an imaginary object, the system is still the same, so would this guy be able to collect from Sony, EA, Microsoft, etc? Or would the game companies drop the public market place model where this type of action could happen?
    Anywhere where 3 or more characters could meet could be a problem.

    Mighty Hero: I have a magic sword +10 DM that I no longer need. Who wants to buy it from me?
    Newbie: 10 zenny
    Hero wantabe: 20 zenny

    ...

    --
    III.IIVIVIXIIVIVIIIVVIIIIXVIIIXIIIIIIIIVIIIIVVIIIV IIVIIIIIIVIII...
    1. Re:Games? by Lonath · · Score: 2

      MUDs have been around for 20 years and have had various kinds of commerce and banking and auctions in them. I assume that real money has been trading hands for things from the start.

  48. Ebay Auction? by yeoua · · Score: 2

    So when is this guy putting his patent up for auction on Ebay?

  49. Here's one [was Re:Ebay wasn't the first] by dspeyer · · Score: 2, Interesting
    Here's an online auction for a bunch of legos in 1994. It's just the first thing I spotted on google groups. Granted, this was USENET, not web, but that's not a big difference, and I think dejanews existed back then. There are older references too.

    BTW, isn't obviousness suposed to be an adequate defense?

    1. Re:Here's one [was Re:Ebay wasn't the first] by Rick_T · · Score: 3, Interesting

      > Here's [google.com] an online auction for a bunch
      > of legos in 1994. It's just the first thing I
      > spotted on google groups.

      Online auctions via USENET were going on all the time pre-1995. rec.games.video.classic was a common group (which I frequented) that had online auctions. I ran a few myself before Ebay started and took a little of the "database" work (which I had some custom programs I wrote on my Amiga 500 handling) off my hands. Google had a few of my r.g.v.c auctions from 1994 / 1995, and using advanced search, you can find a few even older. For example (not my auction), message ID 23APR199308590840@watson.bms.com ...

      Sometimes, making something everybody and his pet cat does already a little easier is worth patenting. But "a method of holding automated auctions using computers, databases and the Internet to register and link buyers and sellers, and facilitate transactions" sounds a little obvious to anyone who's run a USENET auction before. Hell, most of the USENET auctioneers were using some sort of database system at the time.

      --
      -- Rick
    2. Re:Here's one [was Re:Ebay wasn't the first] by nuggz · · Score: 2

      Obviousness should prevent a patent from being granted.

      Arguements
      usenet isn't centralized
      it isn't as searchable as the ebay database.
      not an auction specific system, the patent is for auction specific not a general purpose communication system.

      I think that the obvious to one skilled in the art isn't fairly evaluated today. Secondly what is obvious today wasn't as obvious 7 years ago (which is the point of disclosure in the patent)

    3. Re:Here's one [was Re:Ebay wasn't the first] by afidel · · Score: 2

      Ebay was far from the first, I remember trading collectibles online on the Cleveland Freenet back in the early 90's, and most of those groups had existed since the mid 80's. I would have to read the specific claims of the patent, but if it is truely as broad as "an online site to trade used and collectable goods" I don't think ebay will have a hard time defending themselves.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  50. I have proof of prior art from google groups! by Brian_Ellenberger · · Score: 5, Informative

    Here is the first ebay post dated 1995/09/12 from google groups: http://groups.google.com/groups?selm=pierre-120995 2317370001%40pierre.vip.best.com

    The patent was filed November 7, 1995. Sorry, two months too late!

    1. Re:I have proof of prior art from google groups! by gosquad · · Score: 2, Funny


      Oh man! I wish I could go back to 1995:

      Autographed Marky Mark Underwear
      Current bid: $400
      Auction ends on: 09/25/95, 10:09:29 PDT
      Auction started on: 09/11/95, 10:09:29 PDT

      haha

    2. Re:I have proof of prior art from google groups! by azaroth42 · · Score: 2


      Could be that it was patent pending since before Nov 7th, 1995 though?

      --Azaroth

    3. Re:I have proof of prior art from google groups! by youngsd · · Score: 5, Informative

      It doesn't work that way. If the "inventor" can show that he had the idea prior to someone else publicly disclosing it, he can still win. He has up to one year after public disclosure to file a patent, so something that shows up two months before his filing is very unlikely to dispose of the patent.

      Also, this patent may claim priority from some earlier patent application(s) (haven't looked, don't know) -- it can be difficult to figure out the actual priority date. It may be earlier than one year ahead of the filing date.

      And yes, I am a former patent attorney, although I have since seen the light and no longer do that.

      -Steve

      --
      Democracy is a poor substitute for liberty.
  51. Favourite rotten bastards quote by forged · · Score: 2
    • "It's not our goal to put eBay out of business. It's our goal to provide just compensation for the patent owner", Robertson said.

    -Yeah, riiiight !

  52. Who cares... by jsonmez · · Score: 3, Insightful

    Who cares if he had the idea patented before Ebay. Who cares if Ebay knew about it and willfully violatd the patent. The big thing that matters here is the fact that someone can patents something like "online auctions." That's not what patents were designed for. Patents were designed to protect inventors... inventors of new ideas, not people looking to make a quick buck or own a group of ideas. Auctioning something offline or online should not make a difference. If you can't patent something offline you shouldn't be able to patent it online, it makes no difference. A good majority of these stupid patent claims come from the patent office to allow people to patent things that they normally wouldn't be able to patent, just because they are doing them online.

  53. Is it just me... by Schnapple · · Score: 2
    ...or has anyone else noticed a pattern here:
    1. Someone claims he invented something painfully obvious (like the question mark). Usually claims he patented it a long time ago. (Given that patents take years to process, this is probably true)
    2. Said someone fires off lawsuit to largest offender of his patent.
    3. World + Slashdot get into a tizzy. Many people (myself included) start to think its time to get rid of the patent system.
    4. World + Slashdot start thinking about how far and wide the patent claim could reach. My favorite example is that guy a while back who claimed a patent on computer graphics - every GUI amd game in history could owe him big time.
    5. Then... Nothing happens. We never hear of this guy again, we never hear of the outcome of the lawsuit, we never hear anything.
    So is it that these lawsuits are being settled out of court for undisclosed terms, are the lawsuits dropped, or are they being pitched out by some (smart) judge?

    And don't we all know that this is what is going to happen here?

  54. Re:Defense of patents by gosand · · Score: 2
    Short answer: RTFA

    Longer answer: He did. eBay was negotiating to buy his patents when they first started up, but instead just went right ahead with their site. This guy is a patent attorney (i.e. he IS a lawyer) so I am sure he is aware of the law surrounding this issue. And just because it made the news now doesn't mean it just happened.

    --

    My beliefs do not require that you agree with them.

  55. Put the online auction patent on eBay! by Boone^ · · Score: 2

    I'd love to see the bidding war and the snipe attempts if this yay-hoo were to list his patent on eBay.

  56. Sorry, just can't buy it. by El+Camino+SS · · Score: 5, Insightful

    Actually, it strikes me as proper that a patent would be used to protect an individual's invention (in this case, a business process, which is allowed under current rules) against a large and otherwise unasailable uberCompany.

    One. Patents are not made to stifle business. They are made to protect the inventor.

    However, the whole concept of inventing an "online auction" is so damnably ridiculous that there is no way that he should ever have been granted a patent for it. This whole argument is founded in the fact that the man said "uh, auction on a computer!" and got a patent. WTF ever. Auctions have been around for centuries. People can not apply the phrase on a computer on the back of every tried and true business model and expect to get royalties or the ability to sue the bejesus out of people.

    Oh, and when you use the phrase unasailable uber-company, it makes us all think of you as a useless leftie that thinks that eBay is "evil" simply because it is big. The last thing I checked that eBay did to ruin or world and our freedoms was consume electricity. So go attack Dow Chemical, Halliburton, or McDonald's. All eBay has done for me is make sure that I am not getting price gouged. At the very least, if you are going to go after corporate America, go after the ones that are fucking up people's health, the government, and the planet.

    1. Re:Sorry, just can't buy it. by Rayonic · · Score: 2, Insightful

      One. Patents are not made to stifle business. They are made to protect the inventor.

      One. Patents are not made to protect the inventor. They are made to give people incentive to invent.

    2. Re:Sorry, just can't buy it. by dhogaza · · Score: 2

      All eBay has done for me is make sure that I am not getting price gouged.

      They have? Given that it's easy to find used camera equipment being sold on eBay at prices higher than outfits like B&H offer for the same thing brand-new, I'd say eBay doesn't do this at all.

    3. Re:Sorry, just can't buy it. by AlexCompy · · Score: 2, Informative

      "One. Patents are not made to stifle business. They are made to protect the inventor."

      That is actually merely a by-product of the stated true aim of patents (or any intellectual property protection).

      IP is created insofar as it "promotes progress in science and the useful arts" (apologies for the misquote, but I don't have the US Constitution in front of me).

      It has been discussed by some pretty weighty academics over the last 200 years. Patents are not designed to "reward" an "inventor" but to encourage people to invent who otherwise wouldn't bother.

      It is this goal of patents that most clearly shows the manifest failure of patents in the technology sector: online auctions were bound to happen sooner or later, by giving a patent on it, no-one has been encouraged to invent, but someone is being rewarded.

    4. Re:Sorry, just can't buy it. by cdrudge · · Score: 3, Informative

      Actually, it is not to give them incentive to invent, it is to give them protection that once they invent something, someone can't just go and steal the idea. The incentive is that once a patent is granted, they can then safely (and hopefully) reap the financial rewards from marketing or licensing it. A patent alone is not the incentive.

      People still have incentive to invent new things without patents. They can choose to keep them secret and hold on to them for as long as they like. If they do so, and someone out finds a way to duplicate it, then they have no protection.

      I once heard the example of this using Intel and Coca-Cola.

      Intel invents some new technology...lets say a new super-scaler pipeline for the sake of arguments. They file a patent and must state how it works. AMD can see the patent and how they do it, but they can't duplicate it exactly since it is patented. Intel is granted protection for some period of time. Eventually, this new super-scaler pipeline won't be benificial anymore since a newer super-duper-scaler pipeline was just invented. Then the old expired patent doesn't matter since it is virtually worthless.

      Coca-Cola on the otherhand came out with a newly "invented" formula for Coca-Cola. They don't want Pepsi to find out how they make it, so they decide to keep it a trade secret. Coca Cola has the ability to keep it a secret forever...but Pepsi is free to try to duplicate the taste and market their version of the beverage.

    5. Re:Sorry, just can't buy it. by WEFUNK · · Score: 3, Insightful
      People can not apply the phrase on a computer on the back of every tried and true business model and expect to get royalties or the ability to sue the bejesus out of people.

      Oh yeah, well I'm going to claim:

      "1. A method of commerce comprising:

      creating a first trade channel for a predetermined good or service between a first entity and second entity, using, at least in part, an interconnected network of computers; and

      eliminating, simultaneously or nearly simultaneously, a second trade channel for said predetermined good or service between said first entity and a third entity."
      Oh wait, that's already been done in "Methods and Systems for Commerce" just one of the many business method patents that reference the auction patent, which appears to be one of the pioneers of just slapping "on a computer" or "over the internet" or "using an electronic database" onto an existing business model to come up with a patent. Look for these guys to start suing EVERYONE.

      Most of the referencing patents were filed at the height of the dot com boom and are just being approved now, including ones from priceline and lendingtree. Expect to see a whole lot more of these lawsuits as troubled and bankrupt companies, and their creditors and investors, start preying on the dot com survivors and other established businesses with their newly approved patents.
      --
      My next sig will be ready soon, but friends can beat the rush!
    6. Re:Sorry, just can't buy it. by ratamacue · · Score: 2, Insightful
      [Patents] are made to give people incentive to invent.

      This is the rationale, not the implementation. The implementation most certainly qualifies as "protection". Patent law works by "protecting" the patent holder from competition in the market, which would certainly arise in the absence of patent law, given that the product in question is valued by others.

    7. Re:Sorry, just can't buy it. by Ngeran · · Score: 3, Interesting

      This whole argument is founded in the fact that the man said "uh, auction on a computer!" and got a patent.

      Actually, I have to disagree here. Quoting from the article:

      He filed his idea with the patent office in April 1995 and founded MercExchange to try to turn the idea into a business. But he couldn't raise the funding and eventually turned to the business of licensing his patents to other companies.

      So he made a good faith attempt to raise the funding to produce the item listed in the patent, but couldn't get the money for it. Just because he may have made the attempt when there wasn't billions of dollars of capital available for anyone that mentioned the word "Internet" doesn't mean that he should be punished for that fact. My gripe is the folks that file for patents without any intention of ever attempting to implement it.
      --
      if( read(this) ) { you = programmer; }
    8. Re:Sorry, just can't buy it. by Amazing+Quantum+Man · · Score: 2

      IP is created insofar as it "promotes progress in science and the useful arts" (apologies for the misquote, but I don't have the US Constitution in front of me).

      To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries (Article I, Section 8).

      --
      Fascism starts when the efficiency of the government becomes more important than the rights of the people.
    9. Re:Sorry, just can't buy it. by Ethanol · · Score: 3, Insightful

      Actually, it is not to give them incentive to invent, it is to give them protection that once they invent something, someone can't just go and steal the idea.

      Actually, it's to give inventors an incentive to publicize their inventions so that (after a lapse of time) the inventions will become public domain. That's the sole purpose, the raison d'etre. The alternative would be inventors keeping their ideas as trade secrets as the only possible defense against competition, and that would be worse for society as a whole because other inventors would then be unable to build on the work and advance the state of the art.

      Problem is, the way patents are enforced makes it easy to start thinking of ideas as "property" that can be "stolen"--which is, if you really think about it, absurd. But we've all been mentally contaminated by this false notion of "intellectual property", and now people think that patents are based on some kind of god-given right to profit from whatever you happen to think of first at the expense of whomever happens to think of it second.

    10. Re:Sorry, just can't buy it. by Deven · · Score: 4, Insightful

      So he made a good faith attempt to raise the funding to produce the item listed in the patent, but couldn't get the money for it. Just because he may have made the attempt when there wasn't billions of dollars of capital available for anyone that mentioned the word "Internet" doesn't mean that he should be punished for that fact. My gripe is the folks that file for patents without any intention of ever attempting to implement it.

      I'll give him some credit for attempting to implement the idea. That puts him on higher moral ground than the bottomfeeders whose entire business model is based on patent extortion.

      However, the fact remains that the patent probably never should have been granted in the first place. Patents are supposed to protect nonobvious inventions, and we're seeing droves of patents granted that are patently obvious. I believe software patents and business method patents are particularly susceptible to this sort of stupidity, and should be subject to heightened scrutiny as a result.

      I'm not categorically opposed to all software patents; RSA was a brilliant invention deserving of a software patent if anything was. It was a true invention, and now that the patent has expired, it's in the public domain, for the benefit of all. This is the sort of innovation that patents exist to encourage, and the only justification for them.

      The problem is that the USPTO is out of control, granting ridiculous patents on everything from XOR cursors and one-click shopping to swinging sideways on a swing! If the USPTO actually applied the "nonobvious" test properly, very few patents would be granted, and they could serve their intended purpose. Instead, the current system is legalized extortion, and a great tool to dampen economic activity.

      Discuss the most egregious examples (like swinging sideways) with your congresscritter. That's the only way this situation might improve.

      --

      Deven

      "Simple things should be simple, and complex things should be possible." - Alan Kay

    11. Re:Sorry, just can't buy it. by Tablizer · · Score: 2

      (* which appears to be one of the pioneers of just slapping "on a computer" or "over the internet" or "using an electronic database" onto an existing business model to come up with a patent. *)

      Here is the dot-com patent generating algorithm:

      h = openFile("regular_business_behavior.txt");
      while (w = readNextWord(h)) {
      if random(0.0,1.0)) > 0.96 {
      w = w + " using a computer ";
      }
      print(w);
      }

      Only 7 lines of code to replace a dot-com patent fiend.

    12. Re:Sorry, just can't buy it. by leshert · · Score: 2

      A wonderfully circular argument. I can paraphrase:

      Unless I misinterpreted your words, you have implied that the private sector has the ability to destroy the planet. This is impossible. Because currently all participants in the private sector are residents of our planet, only the planet can allow, or generate, the destruction of the planet.

      I don't mean any disrespect, but I think the fallacy here is anthropomorphizing "government". The government is not a cohesive whole; it is made up of individuals, whose actions cannot always be extrapolated to be actions of "the government".

      Also, corruption doesn't need to involve force; it can involve positive feedback only (enticement), which is often the case in government corruption.

      BTW, I also agree with the main point, that business model patents do more harm than good.

    13. Re:Sorry, just can't buy it. by Arandir · · Score: 2

      Now that you've read the first chapter in "Libertarianism in 24 Hours", go ahead and read the other 23.

      Government does not have a monopoly on the use of force. Insted it has a monopoly on the legal use of force. There is a subtle difference. Private citizens can, and do, initiate force all the time. It's called "crime". To pretend that government is immune to the application of force is like pretending one mob boss cannot murder another.

      Of course, you are correct in a tiny way, because no person can be corrupted unless they allow themselves to be corrupted. Since governments are composed entirely of people, the same situation applies.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
    14. Re:Sorry, just can't buy it. by ratamacue · · Score: 2, Insightful
      Insted it has a monopoly on the legal use of force.

      Close, but no cigar. Government holds a monopoly on the *initiation* of force (force as a means to an end, or a "business model" so to speak). I should have been clear about that, admittedly. Consider that the term "legal" is defined by government in the first place, so we're walking a circular rope by defining government's use of force via "legality". And don't forget about self-defense, which is a type of force that can be used legally by civilians.

      There is a subtle difference.

      I would hardly call it subtle. I would call it fundamental. The orginization called government is *defined* by it's monopoly on [the initiation of] force. In fact, this is the only definition or description of government which stands under *all* circumstances, at any point in history, under any society. At the bottom of anything and everything that government does is [the initiation of] force.

    15. Re:Sorry, just can't buy it. by SkewlD00d · · Score: 2

      Patent# 11,010,101:

      "The Universal Patent: A system, method, function, model, device or idea for permuting all possible ideas and immediately patenting them. Then, identifying infringers and immediately issuing 'cease-and-desist' notices followed by lawsuits."

      All the lawyers at the bottom of the sea: the sharks should check their wallets.

      --
      The biggest trick the devil pulled was letting lawyers become politicians so they can write the laws.
    16. Re:Sorry, just can't buy it. by Arandir · · Score: 2

      Government holds a monopoly on the *initiation* of force.

      So when I go punch my neighbor in the nose for no reason at all, I am not initiating force?

      I should have said the government has a "legal monopoly" on the use of force. It's still a strange sentence, but that's how it is.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
    17. Re:Sorry, just can't buy it. by drinkypoo · · Score: 2
      Coca-Cola on the otherhand came out with a newly "invented" formula for Coca-Cola. They don't want Pepsi to find out how they make it, so they decide to keep it a trade secret. Coca Cola has the ability to keep it a secret forever...but Pepsi is free to try to duplicate the taste and market their version of the beverage.

      When nanotech reaches its fruition it will be impossible to protect trade secrets because you will be able to replicate a can of coca-cola atom by atom.

      Simple processes like replicating the contents of a can of soda should get here long before it can be done in a mechanistic fashion like that; we will be able to use nanobuilt sensors to determine the precise contents. We're almost there today.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    18. Re:Sorry, just can't buy it. by Saint+Nobody · · Score: 2

      you ought to learn sed. it's a one-liner. just pass it the name of the file of business practices as the first argument.

      #!/usr/bin/sed -f
      s/\(\w\+\)/\1 using a computer/g

      --
      #define F(x) int main(){printf(#x,10,#x);}
      F(#define F(x) int main(){printf(#x,10,#x);}%cF(%s))
    19. Re:Sorry, just can't buy it. by lamontg · · Score: 2

      RSA was a brilliant invention deserving of a software patent if anything was. It was a true invention, and now that the patent has expired, it's in the public domain, for the benefit of all. This is the sort of innovation that patents exist to encourage, and the only justification for them.

      The RSA patent is actually my favorite example of a patent which hurt the computer industry for a number of years before it finally expired. We really needed RSA to be unencumbered in the early 90s when the internet was just taking off. If we hadn't had crypto patents back then maybe we'd actually have something like DNSSEC now.

      Personally I think there needs to be a moritorium on software patents in order to allow software to rapidly develop. Patents do not really encourage development. I have every expectation that R, S and A would have developed their crypto system even if they couldn't have patented it. Similarly, I'm sure that Amazon would have produced one-click even if it wasn't patentable.

      I don't see where elminating software patents will do any harm. It will, however, mean that you can't just invent one critical piece of software or algorithm and have a consistant gravy train for 20 years. It means that to get a consistant source of cash you have to innovate year over year, which apparently scares the crap out of a lot of powerful people.

    20. Re:Sorry, just can't buy it. by msouth · · Score: 2
      Actually, it's to give inventors an incentive to publicize their inventions so that (after a lapse of time) the inventions will become public domain. That's the sole purpose, the raison d'etre. The alternative would be inventors keeping their ideas as trade secrets as the only possible defense against competition, and that would be worse for society as a whole because other inventors would then be unable to build on the work and advance the state of the art.


      (It's not only keeping things secret that could happen, but just not bothering at all because you know someone with more capital, access to channels, or plain dumb luck will be able to come in and eat your lunch once you have slaved for years cooking it.)


      But that was just parenthetical. The real point I wanted to make is that there should be a requirement to directly argue from the raison d'etre why you should be granted a patent. The "non-obvious" thing has obviously failed miserably. I think that someone should argue it from this question:


      "When would this idea have been publicly revealed had the would-be patentor not come forth with it?"


      The idea of the patent is to get intellectual capital into the public domain faster than it would otherwise be. We give you a limited time monopoly in exchange for the revelation of your grand idea--but why do we want you to reveal your grand idea so badly that we are willing to give you the right to keep us from making it ourselves for a time? Well, the only way it makes sense that we would give you a monopoly on it would be that we value your disclosure of the idea. Why? So that we, one day, can use it ourselves, without having to pay anyone for it.


      Ok, now, if someone just happens to be the first to get to the patent office with an idea that would inevitably come out within the next 20 years, we should say "no thanks, it's clear that any average human will consider this obvious in 5 years."


      It can (almost) never make sense to grant a patent on an invention that will be obvious to everyone in less time than the term of the monopoly. (I say "almost" because there could be something time-sensitive, like a cure for AIDS now that we know will be obvious in five years--go ahead and give them the patent because lives need to be saved (or don't, because more will be saved later--but whatever, there could be time sensitive exeptions)).


      For example, one-click. Everyone is selling stuff online, and human interface concerns are going to dictate that you make that as easy as possible, voila, one-click. No patent for you.


      Now, someone comes along and says "I just figured out that you could turn a refrigerator motor into a fusion engine with common household objects", we say "well, those common household objects and refrigerator motors have been around for some time now. I guess if it were going to happen within twenty years it would have surely happened by now. Here's your patent, buddy."


      I have thought of things that require nothing other than what has existed for years, in a business that has been around for years, and yet no one has done it. I think something like that ought to be patentable--there is an obvious case I can make saying "if this intellectual capital was going to come into the public domain on its own, it would have done so by now". On the other hand, when we all are starting to get two-way tv wrist radios and someone with early access to it or just a reasonably bright individual says, "Hey, you could use these for commerce!", there is no way that you can argue that people aren't going to just think of that without the patent guy's help.


      I know you can just call this a restatement of the non-obviousness criteria that already exists (leave it to me to restate the nonobviousness criteria). But the problem with
      'isn't that obvious" is that it can easily become "well, gee, I sure never thought of something like that". But if you put some concrete background to it like "hmmm, do I think this idea would get into the public domain faster with or without the patent?", you have a whole different mindset. You can ask yourself historically if people have been putting two and two together in ways very analogous to this, and if it's reasonable to think that they would think up "internet + auction" within 20 years. If you can argue that, then you should say "nope, sorry, no patent for you."


      Remember that non-obvious is already a judgement call, and it doesn't seem to be applied very well right now. Non-obviousness itself, as the parent points out, isn't really the point--the point is whether it is advantageous to us, the monopoly granting public, to get the idea disclosed. If it looks pretty darn sure that it's an idea that will make its own way into people's heads without disclosure, it should fail the test.

      --
      Liberty uber alles.
  57. In the way things go... by Ektanoor · · Score: 2

    ... I'm just waiting to see news like "Slashdot sued for infringing patent on web-forums/moderation points/news submition/Poll a la CowBoyNeal.

    Really I'm just waiting for that very day when someone overcomes is inner rat fear, comes into light and makes the most sound claim over millions and millions of geeks, hackers, nerds and lamers that roam the Internet - "You owe me money".

    Frankly, this looks less probable to happen as immediately he will be crushed by a wave of public opinion, EFF and the whole world together. But seeing the schizos that have been appearing recently, and the claims they make against huge world mastodons, who have a whole lawyer army behind... The will to become "rich, rich, very rich" destroys every reasoning of these people. These guys have been in this world since the conception of patents have came into force. However we have a problem that before was not so critical:

    You pick up a foggy idea, convert it into some unscientific and poorly technical piece of paper and voila! Considering the very poor quality of the workers in the US Patent Office then they think they have all the chances to show the nose to BG on next Fortune edition...

    What the Patent Office has been doing for the last years is a brilliant example of incompetence, absurdity and a demonstration that their people is not qualified at all. They simply are violating one of the reasons for the existence of such institution: To kick out idiots that claim for non-existing inventions, "inventions" that factually have prior art and schizos. However they seem to nearly accept every single thing that comes to them concerning software. From anyone or anywhere. So I will no be surprised, in a near future, to see Hemos publishing - "We have been sued for patent infrigement".

  58. I'm sorry, sir... by Rayonic · · Score: 2

    but I've patented the method for posting the same old "patent the method for patenting" and "patent sueing people over patents" jokes on Slashdot whenever a related story comes up.

    Please send me ten dollars for this infraction and hand over the password for your account. Thank you.

    1. Re:I'm sorry, sir... by Myco · · Score: 2

      How about patenting a method for getting screwed over by people with outrageous, inspecific, overly broad patents? Double jeopardy time!

  59. Limits on behavior by buss_error · · Score: 2
    Used to be that a town would get fed up with someone like this joker and run them out of town on a rail.

    Perhaps it wasn't just, but it worked.

    It seems to me that in a gut busting effort to enhance and preserve corporate profits, lawmakers have screwed up the system to the point where it's now biting those selfsame corporate interests in the butt. Be funny if they can't pump millions in to re-elections to buy their way out of the hole their first contributions put them in...

    --
    Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
  60. Has anyone here actually READ the patent? by cshotton · · Score: 5, Informative
    Judging by the tenor of comments here, it doesn't seem like many people took the time to actually read the relevant patents before providing opinions.

    eBay's lawyers may be quite right in saying they have a reason to be hopeful. The patent numbered 5,845,265 has a relatively vague abstract that makes it sound like eBay's business model. But if you read further in the claims, you'll see that what this guy is claiming is something entirely different.

    Claim #1 describes a basic system for an on-line auction house where the actual, physical good is escrowed by the auction house, bar-coded, photographed, and placed on a Web site to be bid on. This process is elaborated on in claim #3 with sufficient detail as to make clear that the intent of the patent is to mediate a traditional auction of physical goods by replacing bidders' paddles with on-line terminals.

    The mechanisms described for inventorying auctioned goods comprise a major portion of the claims, in particular #15. Subsequent claims from 18-22 do sound more like what eBay does at the conclusion of an auction, but even so, it's up to the buyer and seller on eBay to consumate the transaction. This patent assumes the auction house is clearing the transaction before releasing the physical goods. Seems like another difference with eBay's model.

    In my own, particular opinion, I think that it will be settled out of court because eBay will likely be able to demonstrate it can potentially prevail if it goes to trial. Prediction: $10M in one time, go-away money. No royalties, no court case.

    --

    Shut up and eat your vegetables!!!
    1. Re:Has anyone here actually READ the patent? by shren · · Score: 5, Insightful

      Patent claims are judged individually. If EBay violates one claim and it is decided that said claim is valid, then EBay is at fault. The claims do not have to all fit, or even all be valid.

      --
      Maybe the state's highest function is to grind out insoluble problems. (Zelazny, Hall of Mirrors)
    2. Re:Has anyone here actually READ the patent? by ZoneGray · · Score: 2

      >> system for an on-line auction house where the actual, physical good is escrowed by the auction house

      Hey, that's a good idea, I think I'll start a business that does that.

      Oops.

    3. Re:Has anyone here actually READ the patent? by Software · · Score: 5, Informative
      If EBay violates one claim and it is decided that said claim is valid, then EBay is at fault.

      OK, but the problem for Woolston is that not even one claim matches what eBay is doing.

      Claims 1-7 do not fit because of eBay doesn't use bar code scanners to scan the product (eBay doesn't even touch the product). I doubt "posting terminal" would be taken to mean every computer owned by anyone who connected to eBay.

      Claims 8-14 are close "... said posting terminal apparatus having means for creating a digital image of a good for sale, means for creating a data record of said good for sale, a tracking number printer means, a tracking number scanner means" but not close enough.

      Claims 15-22 are also not likely to fit: "posting terminal apparatus, said posting terminal apparatus having a digital camera for creating a digital image of a good for sale, a record maker module for creating a data record of said good for sale, a tracking code printer, a tracking code scanner".

      Claims 23-25 mention some of the thing eBay uses, but not all of them are owned by eBay: "said system comprising:
      a digital camera for creating a digital image of a good for sale;"
      ...and...
      "a printer for printing said digital image of said good for sale and said textual information from said user; ", so I doubt these claims would be valid.

      The main problem for Woolston is that eBay doesn't own all of the items listed in the claim. eBay doesn't own "posting terminals", because its customers do. A similar argument holds for claims 26-29. Woolston apparently had first in his mind a proprietary auction system (the internet is mentioned though), not a system where everyone owns a digital camera and can put stuff up on eBay.

    4. Re:Has anyone here actually READ the patent? by bill_mcgonigle · · Score: 2
      the intent of the patent is to mediate a traditional auction of physical goods by replacing bidders' paddles with on-line terminals.

      Ebay/Sotheby's Auctions


      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  61. Re:I'm no patent lawyer by the+eric+conspiracy · · Score: 2

    But I thought you could patent the same idea over and over, modifying it slightly. And you were only infringing upon a particular patent if you followed it exactly.

    You (and almost everyone else commenting on this topic) should read a primer on what constitutes a patentable invention.

    Here is one:

    http://arti.indiana.edu/ott/inventors/034a.html

  62. Al Gore should sue this guy... by Uttles · · Score: 2

    ... because, afterall, good ol' Al did invent the internet!

    --

    ~ now you know
  63. Re:Bar code scanners and printers? by WEFUNK · · Score: 2

    This is how I read it as well. Most of the independent claims are pretty explicit in that they define the system as having to include client peripherals such as bar code scanners and/or digital cameras and/or printers etc.

    Also, I think the guy tried too hard to use "patentese" to obfuscate the obviousness of his concept. I think he lost some of the meaning his the translation to "apparatus [of wordy double speak description]" when he was just describing an ordinary computer. Either that or maybe he was really trying to describe a system of proprietary terminals (like Bloomberg machines) in which case this probably shouldn't have such broad applicability.

    Even if the patent covers the entire concept of online auctions as we know them, I wonder how practical it really is? eBay may provide the auction infrastructure but sellers and buyers are responsible for whether and how they scan pictures, enter text, and print copies. How is eBay expected to know and be responsible for whether a particular customer owns a printer or scanner?

    On the other hand, eBay did want to buy this patent. Was this a precautionary action against frivolous lawsuits or did they intend to use it against competitors? They'll have a tough time convincing a court that it should be declared invalid if it can be convincingly argued that they were hoping to buy it to launch lawsuits of their own.

    --
    My next sig will be ready soon, but friends can beat the rush!
  64. Why just ebay? by wo1verin3 · · Score: 2

    Why stop at ebay, if this clown believes he is in the right, why not go for the alt.forsale type newsgroups.

    Or any site that sells things.

  65. Re:STOP WITH THE GAY-ASS PATENT JOKES YOU FUCKERS by CarrionBird · · Score: 5, Funny

    says the owner of patent #1282211112: Method for online trolling.

    --
    Free Mac Mini Yeah, it's
  66. Prior Art by Ezubaric · · Score: 2

    Let's just hope that one of the guys at eBay sold an old car for "$5000 OBO" and posted a pic online.

    --

    ----------
    I am an expert in electricity. My father held the chair of applied electricity at the state prision.
  67. did he DO anything with it, is the question by McCart42 · · Score: 2

    So he took out this patent a long, long time ago. Did he do anything with his patent or is he just trying to make a buck by stifling other companies' innovation? I have sympathy for a patent-holder if they develop the business, and then are pushed out by someone who is using their patented technology. But if this guy is just pulling ideas out of the sky and hoping someone uses them, I have no sympathy for him. He deserves to get counter-sued, and the patent system should be changed based on the craziness of cases like this.

    --
    "I may be quite wrong." - Socrates
  68. Be fully informed by vees · · Score: 2

    I'd still have to vote according to what the law says, not what it means

    Well, the law should just be common sense written down.

    No matter what the judge says, you only have to vote your conscience.

    If you think the law is badly written or not suitable to society any more your responsibility as a juror (and peer to the defendant) is to not even let it get to the penalty phase.

  69. Re:Defense of patents by Rhubarb+Crumble · · Score: 2
    This is really interesting, especially this section:

    Thus, an infringer may claim that plaintiff's delay in bringing suit caused the infringer to believe that plaintiff would not object to defendant's infringing conduct. Based on this belief, defendant continued the infringing activity, thereby substantially increasing potentially recoverable damages. This would constitute material prejudice in the form of economic harm.

    This would seem to apply to most "submarine" type patents, such as hyperlinks, DDR etc., maybe even GIF if you get a sympathetic judge (although probably not). So how come I've never heard this mentioned before?

    (perhaps I should stop hiding under that rock...)

  70. Simpsons did it! by JaredOfEuropa · · Score: 2

    Erm, not really, but a lot of other folks do this. Your flower idea is probably already patented.

    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  71. REVERSE Reverse kung-fu strategy by Marc2k · · Score: 2, Funny
    Consider this as a reverse kung-fu revenge strategy

    • eBay hires Bruce Lee and Chuck Norris to beat the crap out of this guy and the USPO.
    • Heeeeee-yah!
    • Profit
    --
    --- What
  72. Way out of "recession" by Jeppe+Salvesen · · Score: 2

    Let's face it. The economy is sluggish, and nobody has a really good plan to fix it.

    What is a good way of fixing this problem? Cutting costs, and making sure that average Joe gets more money in his pocket. Yours is a largely customer-driven economy. We also need to understand well the current situation. How similar is it to past situations? How is it different from those? What happened then?

    Frankly, I think we should sacrifice quite a few lawyers. Frivolous patents, competition by courtroom and software patents are all expensive practices. Since lawyers are resourceful, wealthy people, it is better to sacrifice some lawyers than a bunch of people down the chain who don't retrain as easily.

    Remember that long-term high unemployment leads to a collapse in the housing market. If I was you, I would be working really hard to control the way in which it will occur. It is vital that we return to the basics now. We should study history and statistics intensly, figuring out what is likely to occur and how to control it in the best possible way. There really is no need to keep repeating the mistakes of the past, is there?

    --

    Stop the brainwash

  73. Re:Karma by night_flyer · · Score: 2

    no case for two reasons:

    Prior art = fidonet auctions, all done before the explosion of what we call the internet.

    his patent consists of barcodes, in otherwords his idea requires that eBay actually possess the items being auctioned. they obviously dont.

    no case.

    --


    Thanks to file sharing, I purchase more CDs
    Thanks to the RIAA, I buy them used...
  74. quote from article by dR.fuZZo · · Score: 2

    "We expect to be vindicated at trial....they are rank infringers," said the rank opportunist.

    --
    -- dR.fuZZo
  75. Re:Defense of patents by kfg · · Score: 2

    But please note that this defense only limits the possible judgement. The patent itself is still valid and enforceable, thus this defense has to be applied on a case by case basis, unlike trademark where once it's gone, it's gone.

    Basically it says that if you let the neighbors kids run all over your flower beds for years and then one day finally get sick of it and sue them you can't go back to the begining of time to collect for every flower they ever trampled. Since you had allowed them to do it for years without complaint you willfully gave up the right to collect for earlier incidents and any attempt to do so would be out of malice.

    That does NOT mean you gave up any rights of ownership to your flowerbed and can't keep the kids off it in the future.

    KFG

  76. Why so long? by linderdm · · Score: 2

    If he filed his patents in '95, why the hell has it taken so long to bring this to court? Ebay has been around, and very popular for many years now.

  77. Re:Not to mention by aaarrrgggh · · Score: 2

    My guess is that it means that the buyer can put it up for auction again immediately.

  78. It does vindicate by xant · · Score: 2

    "Patent pending" refers to the time after it's filed but before it's granted, during which the intellectual property is public knowledge. Before it's filed, the patent is not public knowledge. If eBay somehow took the idea from him before it was made public by the process of filing for a patent, the guy may still have a case that they stole a trade secret, but he'd have to prove that, and it wouldn't be patent law any more.

    The only thing that's unclear is why eBay would ever have wanted to buy his patents from him, except possibly to save the expense of court proceedings. eBay itself surely knew the patent was invalid.

    --
    It's rare that you're presented with a knob whose only two positions are Make History and Flee Your Glorious Destiny.
    1. Re:It does vindicate by Royster · · Score: 2

      Or they might have wanted to buy the patent (legit or not) in order to extort^H^H^H^H^H^H charge royalties on its competitor's businesses.

      --
      I have discovered a truly marvelous sig, unfortunately the sig limit is too small to contain i
  79. Re:Defense of patents by Shelled · · Score: 2

    Better phrased: not valid but legal.

  80. Can someone please tell me ..... by frovingslosh · · Score: 2

    On this subject, can someone please tell me what the current cost of getting a patent is. Not the search of prior art, or the lawyer fees, but just what the patent office takes form the inventor in fees. I've been told that it has grown extremely high, but this and other patents that would seem extremely trivial (in this case I believe there was already prior art that should negate it) keep popping up, and I'm having trouble understanding how an individual can afford to get an apparently worthless patent if it is priced as high a I'm told.

    --
    I'm an American. I love this country and the freedoms that we used to have.
  81. Jury duty by Rupert · · Score: 2

    I'd still have to vote according to what the law says, not what it means

    Do a Google search on jury nullification (there, I did it for you). The theory is that you are allowed to decline to convict because the law is unjust.

    As usual, IANAL.

    --

    --
    E_NOSIG
  82. Re:Please by smyle · · Score: 2, Funny

    whew - at least i can get by with lower-case letters and some punctuation.

    --

    Sleep is just a poor substitute for caffeine, anyway. -Bob Lehmann

  83. Ah, hindsight! by melquiades · · Score: 5, Funny
    Heck, come to think of it, I should have filed this one:
    A patent for the use of patent law to claim ownership of broadly applicable and largely obvious and unoriginal ideas, thereby allowing the user of this patent to file frivolous suits against major corporations for personal monetary gain.
    Judging from recent news, that patent would make a killing on eBay these days!

    Alas, there's too much prior art now to file it -- unless, of course, the patent office were to start approving patents with no regard whatsoever for their validity....
    1. Re:Ah, hindsight! by Phroggy · · Score: 2

      Alas, there's too much prior art now to file it -- unless, of course, the patent office were to start approving patents with no regard whatsoever for their validity....

      Start?

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
  84. Live by the sword... by Lonath · · Score: 2

    I don't like SWpat, but eBay also has some lovely patents like that one for loading thumbnails from 2 different servers and put them onto the same page. I hope that everybody loses this battle.

  85. Re:the spelling and grammar troll v1.2 by fmaxwell · · Score: 2

    Kinda stupid to reply, but do you think someone actively went around correcting the spellings of words?

    I am glad that you asked. Benjamin Franklin "actively went around correcting the spellings of words." As you can see from this page, Benjamin Franklin was a proponent, early on, of reforming spelling in the English language. His work inspired Noah Webster, leading to many of the spelling reforms we enjoy today.

  86. "Plain English" by Tablizer · · Score: 2

    (* "The judge has not translated MercExchange's patent claims into plain English, an important part of a patent dispute. Until he completes this step, known as the Markman ruling, it's hard to tell how big the threat is to eBay" *)

    Here, judge, I will do it for you:

    "This patent covers anything that people would normally do by hand or by phone in normal business settings, but is simulated or emulated digitally instead."

    I wish I patented all emulation of physical processes when "business processes" were first allowed to be patented, then All Your Software Are Belong To Me.

  87. First, we shoot all the lawyers... by lamz · · Score: 2

    "It was terribly frustrating," he said. "I followed the rules. I was convinced that was the right way to go. Now I'm convinced we're going to have our day in court and win."

    Wow! You know what's even more frustrating? Actually going ahead with an idea, succeeding, then having a parasite attach himself to you. This guy should be shot. And pissed on.

    --

    Mike van Lammeren
    It will challenge your head, your brain, and your mind.

  88. Re:Nope. Try again. by MoneyT · · Score: 2

    IF the patents were filed in 1995, but ebay had a working business model that same year, and the patent wasn't granted till 1998 (and the "inventor" still did not have a working business model) shouldn't that invalidate the patent

    --
    T Money
    World Domination with a plastic spoon since 1984
  89. Re:Defense of patents by SnapShot · · Score: 2, Insightful
    So he files his patent and 5 months later EBay founder Omidyar starts his auction site. How is this contrary to what we'd all like the ideal patent process to be?

    I think what bothers me is that in the fast-paced world of the dot com boom it took three years for the patent application to be granted. In those years, while the patent application was secret, Omidyar turned his idea into a huge business that is one of the few internet success stories of the time. I am sure that Woolston feels justified in defending his patent. I am sure that EBay feels justified that the patent doesn't apply. In the end, they both may be right; the patent system is broken when it ignores any attempt at identifying "obviousness", allows any real-word process to be transported to the internet and considered an "innovation", takes years for patents to be granted, allows monopolies to exist for over a decade, and allows business process patents to exist in the first place.

    Off topic, but if I read another "i'm going to patent 'breathing'" posts I think my head might explode.
    --
    Waltz, nymph, for quick jigs vex Bud.
  90. Prior art: posts on BBS forums by Xeger · · Score: 2

    I know that when I ran a dialup BBS back in the mid 90's, I had a message forum where my users could offer items to buy and sell. When more than one person wanted to buy something, they would typically move into private bidding with the seller through the system's email.

    If someone else on some BBS somewhere had a similar service, and their message forum was carried on any network, such as the WWIVNet BBS messaging network or one of its smaller derivatives--then bingo, we have prior art. A message forum, after all, can be considered a database

    1. Re:Prior art: posts on BBS forums by Xeger · · Score: 2

      Problem is, in order to be a patent buster, the messages on the buy/sell area had to be carried over some regional network to other BBSes (or over the Internet, though in your case and mine, the Internet was just a twinkle in some committee's eye.)

    2. Re:Prior art: posts on BBS forums by Reziac · · Score: 2

      Actually, in the case of FidoNet and some other BBS messaging networks, the messages were carried worldwide. Some "local" BBS conferences were also distributed among a cluster of BBSs.

      And I don't know about other BBS software, but with Wildcat, the message base actually IS a database.

      BBS networks have been around since what, the mid-1980s?? I know they go back at least to the early Commodore era.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
  91. (correction) Re:Sorry, just can't buy it. by Tablizer · · Score: 2

    Typo. Should be:

    if (random(0.0,1.0) > 0.96) {

  92. Re:Prior art ... by jc42 · · Score: 2

    > "method of extending cellular communications" - a cell phone not in range of a cell tower instead merely connects to the nearest other cell phone which is in range and uses it as a relay for the call. I'm sure this idea has been thought of, but has it been patented yet?

    This is, of course the basic design of the ChaosNet that was in use at MIT during the 80's (and is still in use by some MIT hackers).

    Of course, the way the US Patent Office works these days, this doesn't prevent you from registering the idea as a patent and suing MIT for using it.

    (One could argue that the RIP protocol also did this back in the 80's, but I suppose that's far too sophisticated for the USPTO to understand, so you're still safe applying for your patent.)

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  93. Justice 4 SALE, bids starting at $20K!!!! :) by Frank+T.+Lofaro+Jr. · · Score: 2

    Ebay has enough money to buy a judge if they so desired.

    And the main function of the civil court system is to make sure the rich get richer and the poor get poorer.

    --
    Just because it CAN be done, doesn't mean it should!
  94. I'll admit it... by Tokerat · · Score: 2


    ...it was awfuly funny to see "I'll admit, I'm stupid." (+5, Insightful) on the front page of /. in the 10 Hot Comments box.

    Good point, thought.

    --
    CAn'T CompreHend SARcaSm?
  95. This is unbelievable! by Newer+Guy · · Score: 2

    Patent Attorneys should be barred from getting patents themselves, because they obviously know how to abuse the (very abuseable) patent system. The U.S. Patent Office needs to be scrapped and rebuilt from scratch. This antiquated office now stifles innovation instead of encouraging it.

  96. Idea by nenolod · · Score: 2, Funny

    Auction off the patents on eBay. That way, the guy who made the patents could score, and he could use the people he's suing to do it! Doesn't that just sound great!!! Also, when someone else has the patents, then they can sue eBay, and they can sell the patents, and keep a whole Law Suit chain going on.

  97. Re:Defense of patents by Reziac · · Score: 2

    Actually, that's not quite true either. In most states, if you allow the public access to your property without restriction for some arbitrary period (usually 7 years), you lose the right to keep them off; I forget the legal term but it amounts to losing the access to the public domain.

    That's why -- I think it's Rockafeller Square in NYC -- is cordoned off one day a year, to prevent it from falling into public access.

    I used to live near a road that this had happened to -- the county owned the property that for decades everyone had cut thru (to avoid a long hairpin in the main road) and one day the county decided to chain it off. That lasted about a week, ie. until someone filed a complaint with the state. The county had to take the chain down and let people continue driving across the property, because legally they'd already lost it to public access.

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  98. just can't buy it... on weed? by Anonymous+Custard · · Score: 2, Funny

    People can not apply the phrase on a computer on the back of every tried and true business model and expect to get royalties or the ability to sue the bejesus out of people.

    But what about the phrase ... "on weed." ? I could patent the acts of "watching a movie, or summer sky, or one's own hand on weed." Now if only the people who do that had any money for me to take...

    1. Re:just can't buy it... on weed? by Cruciform · · Score: 2

      There might be a legal obstacle (War on Drugs) to your patent in the US.
      But if you settle down in Canada, you might be able to start collecting royalties soon :)

  99. Re:Defense of patents by Reziac · · Score: 2

    Hey, wasn't me who used trampling a flower bed as the analogy.. :)

    General point being, tho, that there are lots of ways to lose rights to something. Personally I think any patent not enforced in its first year should be lost. Computer-related stuff is the least of it. Check out drug patents someday!!

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  100. Randite alert! Randite alert! by n8_f · · Score: 3, Insightful

    The other is the capitalist system we are in - which has been proven to work great. Individuals assert their own rights and work to benefit themselves and in doing so, benefit society at large.

    No. The robber barons of the early steel and oil industries did not work to the good of society. They amassed massive personal wealth in order to create personal dynasties that still last to this day (Rockefeller, Carnegie, etc.). This was done to the detriment of the mass of society (low wages, child labor, massive numbers of industrial accidents, union busters, etc.). It is an inverse proportion: the smaller the concentration of wealth, the greater the rest of society is screwed. Look at every accumulation of massive person wealth through history and you will see the exploitation of societies for the gain of a few.

    The first is the communist system. It's a great idea in principle, but as anyone older than 15 will tell you, it just doesn't work.

    And that same person will tell you the same about capitalism. We live in a complex world and any simple model will eventually break down. Sure, capitalism works great at first (as does communism). There is a level playing field, lots of entities competing, fast innovation in the industry. But then one or two players emerge as the strongest and the competition dies away. The industry consolidates, barriers to entry are raised, and there is a hardening of the arteries. At this point, capitalism fails because the barriers to competition are prohibitvely high and competition dies. And this is the best case; if some players start with an unequal advantage, the hardening and consolidation can occur before the industry even begins. E.g., Microsoft entering a new industry and using its billions to bar others from competing by giving away the product or the broadband providers using legislation to make it harder for competitors to compete.

    The same thing happens at a societal level. Face it, if a person is born rich, they have a large head start on everybody else. If the gap between rich and poor becomes too great, it doesn't matter how in-bred, weak, and dumb a blue-blood gets, no one can catch up. Government (societal) regulation is needed to help narrow the gap between rich and poor, to ensure that we all start on a somewhat even playing field no matter who we are born to. No society will be perfect (imperfect world again), but the society that gets closest has the best chance of success because it is less likely that their next Einstein will be shot dead in a ghetto at 15. Competition is great and the best competition occurs when everyone starts from the same place.

    If...it would be impossible for eBay to succeed without infringing the patent, I see nothing wrong with eBay sharing some of their profits with the inventor who they owe their success to.

    Ah, but there is an incongruency in that statement. eBay infringing the patent and owing their success to it are two entirely different things. Yes, your disclaimer says you are using a fictional patent (not very sporting, changing the subject of debate halfway through). But you don't say that it is any more meritorious than this one, only different. I do agree that the original poster's argument is flawed, but your's is equally so.

    It used to be that patents were for inventions; patent applications required a working model or plans for the invention being patented. Some good examples of this (and the patent system at its best, although there were also abuses) are provided by the American gun industry in the 19th and early 20th centuries, such as the lever-action repeating rifle (the Winchester). Anyone could invent a repeating rifle, but they couldn't use the same lever mechanism to eject the spent shell and load a new one (which was an ingenious solution, both reliable and elegant) unless they licensed it (for a period of time).

    Now, however, an applicant can be so abstract as to patent a general idea and not an invention. There is a level of specificity missing. You should have to provide source code, a UML design, something that goes quite a bit beyond what "software" and "business plan" patents require.

    How many ideas are truly original? We are all standing on the shoulders of giants, afterall. What is important is the application of an idea, the creation of something unique.

    So, eBay can not avoid infringing the patent and yet does not owe any of their success to the "inventor" (a misuse of the word) of the patent. That is a telling sign that our patent system needs some revision. Besides which, the patent was filed a couple months after the first post on eBay. Another problem with our patent system.

    Yours,
    Nathan

  101. Re:Laches by benwb · · Score: 2

    Well, seeing as ebay was negotiating with him to buy the patents as early as 2000 (before the law suit) I don't really think that the doctrine laches applies here either. Although there is no time limit for laches to kick in either, one of the tests that the court uses to determine if it applies is if the patent holder delayed six years- which this guy clearly didn't.

  102. I just can't stop laughing! by jafac · · Score: 2

    I can't wait, in 5 more years when my patent on submarine patents runs out, I'm going to fucking sue all of these bastards!

    --

    These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  103. As the saying goes.... by stevenbee · · Score: 2
    People who can, do.

    People who can't, sue.

    --
    Don't read this!
  104. Future Shock by Bluesee · · Score: 2

    This kind of amazes me to some extent. Since I can't get into the minds of legislators and patent clerks, and for that matter, lawyers, I can't determine the answer to this question:

    Do what degree do these people in charge grasp the technology?

    The article says that 'business methods' were ruled to be patentable in 1995, a critical time because business methods were rapidly being transferred to the internet. It also says that the number of patents swelled after that ruling.

    Thus, the holder of such obvious patents gets rich off the hard work of companies like eBay, because the patent was obscure and possibly unknown to the eBay founder when he launched his venture. I know, I read that they had correspondence, but it strikes me as insane that putting anything on the internet can be patentable.

    The internet, which was supposed to break down the barriers to progress is instead chilling entrepreneurship!

    --
    SDMI: Finally! Music that won't rip or burn! Brought to you by the fine folks at RIAA.
    1. Re:Future Shock by Bluesee · · Score: 2

      I think I define entrepreneurship as the incentive a guy has to go invent something, put it on the internet (f'rinstance), and try to make a few bucks, or simply do it 'because it's there'; I am trying to not make the distinction between money-making and non-profit ventures. As an example, think of fansites, those labor-of-love websites dedicated to an actor or a rock band, or even a TV sitcom. To build one of those can be considered e-ship even though it is not profitable in the lucrative sense. Well, those days are over, folks, thanks to businesses cracking down on them. I recall when Paul Simon wrote the song "Kodachrome" he was almost sued by Kodak (who owned the phrase), but then they decided that it was good PR to let it ride.

      But this incidence chills entrepreneurship because you cannot just put something up on a website, even a money-making venture without potentially opening yourself up to lawsuits and litigation. There is no goodwill among people who take these patents out so they can sue others who actually implement the idea... er, I dunno, some things need protection and some things don't, but from my perspective, the less lawyers in court arguing about the internet, the better for us all.

      Kiddie porn, sure, but business methods? No way.

      A possible solution: lawyers are never permitted to become judges or politicians. Pass the Bar exam and sign away those career options.

      --
      SDMI: Finally! Music that won't rip or burn! Brought to you by the fine folks at RIAA.
  105. * sigh * by Whispers_in_the_dark · · Score: 2

    I guess it was inevitable. Sooner or later someone would notice that you can do the patent law equivilent of cyber-squatting (patent something already invented but not patented by someone else) with patent law and rake in the big bucks. It will be interesting to see what the courts do with this now.

  106. Re:Please by gabec · · Score: 5, Informative
    CNet radio is going to have an interview with the guy that's suing eBay in 10 minutes (3:15pm pacific)

    listen here:

    http://chkpt.zdnet.com/chkpt/hud00058rad/http://ww w.cnet.com/radio/playlist/live.asx

  107. Patenters should be obliged to use their patents by jelle · · Score: 2

    It seems like all that patent holders do is sue. Patent law was means to stimulate innovation, not stimulate lawsuits.

    Maybe they should be productive for a change and actually apply the technology they patented.

    Part of the patent law should be that if you don't apply your patent in public products (actual products for sale and directly undiscriminatorily available to the public, in which the invention is applied and for which applicaton of the patent is publicly documented and proven), you can't sue either. Plus if somebody is publicly doing what you think you patented (like ebay), you must sue withing 6 months or you loose your patent for that public activity. Otherwise, it's abuse of somebody else's productive efforts.

    That's what I think, personally.

    --
    --- Hindsight is 20/20, but walking backwards is not the answer.
  108. The goverment should sue him by ehiris · · Score: 2

    For using a technology he doesn't have a patent on to create a patent.

  109. You do not understand jury duty by thogard · · Score: 3, Insightful

    Even though the judge and every lawyer in sight will disagree with this... Your purpose on the jury is to judge the law in the context of the accused. The jury is the last check and balance in the system. Use it when you get the chance.

  110. Re:Prior art ... by Dun+Malg · · Score: 2

    This is, of course the basic design of the ChaosNet that was in use at MIT during the 80's (and is still in use by some MIT hackers).

    Yeah, that's clearly a case of Prior Art, but the way the patent office works, one need only specify that one's scheme is specifically for "cell phones" to get a narrow patent, even though that isn't really significantly different from any other radio-based system. Plus, by saying "cell phones" one paints a big red bullseye on the ass of any of the big wireless providers who implement your patented method. WooHoo! Deep Pockets!

    --
    If a job's not worth doing, it's not worth doing right.
  111. OT on sig Re:I have proof of prior by msouth · · Score: 2

    if you put a credit in your .sig, people might be led to watch the show, and that would be good for everyone.

    mike

    --
    Liberty uber alles.
  112. jury nullification by msouth · · Score: 2

    Also used by juries in the North to let slaves go ahead and run away even though that act was clearly illegal.

    Or, so I heard.

    (Repeating rumors _is_ what the internet is for, issn't it?)

    --
    Liberty uber alles.
  113. Re:Defense of patents by Reziac · · Score: 2

    Time limits: I started to say "one year on software" but got sidetracked :) ... at the rate software changes these days, I think that's plenty.

    Tho actually I agree with you that patenting business models and mathematical algorisms is somewhere downstream from absurd. Like math or sales methods change just because someone applies it in some particular way?? Occurs to me that this patent, if applied literally, also affects every meatspace retailer who uses any sort of POS/inventory setup that includes images of goods in stock (where's the line between an electronic catalog, and the same catalog printed out?), and a barcode for each item. You can see how ridiculous THAT could get!

    Back to time limits -- maybe there should be a limit on how long the patent holder has to start doing something *useful* with the patent. Point being that a patent one has done nothing but sit on should become void after a certain timespan, whether one was hoping for an infringer to sue or not.

    Ack, there are just too many corner cases, especially wrt computer-anything. Argh!!

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  114. perhaps a reduced term by Trepidity · · Score: 2

    I can still see the benefits of software patents for truly innovative creations, but perhaps the terms should be shorter for 20 years due to the nature of the software industry; perhaps something more like 5-7 years would be more reasonable.

  115. The need for patent reform... by Deven · · Score: 2

    The RSA patent is actually my favorite example of a patent which hurt the computer industry for a number of years before it finally expired. We really needed RSA to be unencumbered in the early 90s when the internet was just taking off. If we hadn't had crypto patents back then maybe we'd actually have something like DNSSEC now.

    I have mixed feelings about the RSA patent. Like you, I wish the algorithm was unencumbered 10 years ago; it would have been a boon to the Internet. On the other hand, there was actual innovation in the algorithm, and it took skill to devise it. I'm forced to admit we might not have RSA in the public domain today if R, S & A hadn't invented it. There was nothing inevitable about this innovation.

    Yes, British Intelligence had already invented the RSA system a decade earlier, but it was classified. It might still be classified and unknown to the public, but for R, S & A inventing the same algorithm independently. Nevertheless, as soon as the British invention was declassified, perhaps the fact of its prior invention should have invalidated the RSA patent. However, I'm not sure it "counts" if it was an unpublished invention.

    The point is that innovations like RSA do advance the state of the art, even if they restrain us from taking full advantage of it for a while. Of course, that's how the patent system was intended to work -- give the inventor a monopoly in order to eventually gain the benefit for the public. The RSA algorithm wouldn't be very useful to us if it were still classified in Britain and otherwise unknown...

    Personally I think there needs to be a moritorium on software patents in order to allow software to rapidly develop. Patents do not really encourage development. I have every expectation that R, S and A would have developed their crypto system even if they couldn't have patented it. Similarly, I'm sure that Amazon would have produced one-click even if it wasn't patentable.

    Yes, R, S & A probably would have invented their crypto system either way, but that's because they are academics. Suppose they were corporate researchers? Then it wouldn't be a foregone conclusion that they'd have invented it anyway.

    The one-click patent is fundamentally invalid because its invention was inevitable. Faced with the problem of reducing the consumer's effort required to order a product, any halfway competent engineer could have setup a database of customer information and programmed a system to order the product with a single click and use the stored information for all payment and shipping information. This solution is obvious, which is exactly why the patent never should have been granted in the first place. Nevertheless, under our current system, this invalid patent is probably enforceable.

    Patents were intended to encourage inventors to divulge their inventions which might otherwise be kept secret or never invented in the first place. The "nonobvious" requirement exists to ensure that the public doesn't make a costly concession (the statutory monopoly of a patent) for any invention which was inevitable. Patents were intended to serve a public interest, and granting obvious patents makes a mockery of the process.

    Patents should not be a race to see who can develop and patent each obvious idea first, yet that's exactly what's been happening -- especially in the area of software patents. The USPTO has a miserable track record of evaluating software patents for obviousness, or even finding prior art, since most prior software art usually isn't found in their patent archives.

    The patent system is failing to serve the public interest it was designed for, because the USPTO has been derelict in its duty to grant patents fairly. Society bears an enormous burden of costs associated with these invalid patents, from the direct and indirect costs associated with the monopoly itself, to the enormous costs involved in overturning an invalid patent in court -- in the few instances where a patent can be successfully challenged. No matter how questionable a patent is, it enjoys a legal presumption of validity which is difficult (and expensive) to overturn. Each bad patent represents an enormous burden on society, and we've seen a veritable flood of bad patents in recent years.

    Worse yet, the system encourages abuse of the patent system. Upstanding companies who choose not to file for a patent on an obvious invention can be blackmailed later by an unscrupulous competitor who was willing and able to abuse the system and obtain a bad patent. There are no consequences for abusing the system, and plenty of potential rewards -- corporations are usually amoral and greedy; is it any wonder they are drawn to this corrupt patent system like moths to a flame?

    Also, the USPTO itself is fundamentally flawed, as it derives its sole revenues from patent fees (so it's important to keep those fees coming in by granting as many patents as possible, good or not) and it bears NONE of the cost that it imposes on society for bad patents it grants. There are no checks and balances in the system to ensure that the patent office only grants good patents, so we have a proliferation of bad patents.

    The USPTO is desperately in need of reform and a fundamental restructuring to incorporate checks and balances to ensure that the patent system return to its original purpose of serving a public interest instead of enriching private interests with undeserved monopolies. All existing patents which haven't expired should be audited, and the invalid ones should be revoked. (Of course, that probably won't happen.)

    The only way that the USPTO can be reformed is through Congressional action. Unfortunately, the corporations who benefit from the current corrupt system are well-represented in Congress, while the plight of the public at large is largely unrecognized, as with the perpetual copyright extensions of recent decades.

    The fundamental problem with "Intellectual Property" is not that it's a flawed concept, but that it's been abused and twisted into a corrupt institution which is damaging our society as much as the favoritism of the British crown granting royal monopolies at a whim in centuries past.

    That's why the Constitution does not allow for perpetual monopolies, and nearly didn't allow for any intellectual-property protections at all. The only reason the "intellectual property clause" was allowed into the Constitution at all was because the framers believed that our country would be immune to exactly this corruption due to the power of the people to vote corrupt politicians out of office. Make no mistake, if they could have seen the future, they would have banned copyrights and patents entirely.

    I don't see where elminating software patents will do any harm. It will, however, mean that you can't just invent one critical piece of software or algorithm and have a consistant gravy train for 20 years. It means that to get a consistant source of cash you have to innovate year over year, which apparently scares the crap out of a lot of powerful people.

    If software patents were rare and reasonable (like the RSA patent) instead of frequent and ridiculous (like the one-click patent), the cost imposed on society would be a miniscule fraction of what we're paying now. Given the speed of innovation in the software field, maybe 5-10 years would be sufficient incentive, but is it good to offer different levels of protections in different industries? That might be a bad precedent.

    Software patents should only be granted in those rare instances where nearly any programmer would look at the algorithm and think: "My god! How did they ever think of that? That's fucking brilliant!" Any algorithm where that is the typical reaction may well be deserving of a patent, and one isn't likely to accidently reinvent it, unknowingly infringing on a patent.

    Instead, we've seen a slew of software patents where most programmers think: "That's obvious, why the hell did they grant that patent?" Many of these bad patents are obvious, given the problem to be solved. Just because someone was the first to think of the solution, often it's only because that was the first person presented with that particular problem to solve. Copyright protection is appropriate here, but patents are overkill, and impose a tremendous cost on society for no benefit whatsoever.

    Unfortunately, in the mind of a patent attorney, "obvious" doesn't mean what you think it means. Any minute detail that hasn't been conceived in a particular way before is viewed as "nonobvious", which conveniently allows many more patents to be filed. The USPTO plays along with this charade, which ensures a steady revenue of patent fees to fund the USPTO. The courts are loathe to second-guess the USPTO, since it's suppose to be their job to determine what's patentable or not.

    The situation is especially bad with software patents precisely because computers and software is "Greek" to judges, patent attorneys and even the patent examiners who ought to know the field they're granting patents in. This would be the best reason for a moratoriam on software patents: the system isn't competent to determine validity.

    Patent litigation is notoriously expensive and dangerous, and the stakes are high -- invalid patents are licensed every day, to avoid the risk of losing in court. The more licenses a bad patent has, the greater the appearance of legitimacy -- why would anyone license an invalid patent? Bad patents should be revoked routinely through an administrative review/audit process, not an adversarial legal process.

    The current system is badly broken and amounts to legalized extortion in many cases. Only Congress can fix it, and they're not likely to as long as the corporate interests have their attention. Patents are meaningless to the average voter, so it's not clear how meaningful reform can ever be expected from Congress. Campaign finance reform may help mitigate the undue corporate influence, but Congress won't do anything until they realize the damage to society and believe voters know and care about it.

    Having geeks talk to congresscritters is a good start, but it's probably not enough. We also need to find a way to get Joe Sixpack to care about this issue, which is easier said than done...

    --

    Deven

    "Simple things should be simple, and complex things should be possible." - Alan Kay

  116. Re:Randite alert! Randite alert! by donutello · · Score: 2

    Re-read the parent post - and then re-read mine. I am not debating the virtues of intellectual property rights.

    The parent poster said the patent holder should relinquish his rights because eBay was one of the only companies doing well in a faltering economy and his actions would cause people to lose jobs, etc.

    My point was simply that it was ridiculous to expect him to give up his rights "for the greater good" and that he was perfectly entitled to a share of eBays profits if they did have an infringing patent that they couldn't move away from.

    --
    Mmmm.. Donuts
  117. Re:Randite alert! Randite alert! by peter · · Score: 2
    My point was simply that it was ridiculous to expect him to give up his rights "for the greater good" and that he was perfectly entitled to a share of eBays profits if they did have an infringing patent that they couldn't move away from.


    Yes, I understood that from your post. (I assume Nathan did too.) I don't agree with you, though. First of all, remember that the rights in question are _not_ basic or fundamental rights. They are the result of the way the patent system was designed. Usually, (esp. these days) the phrase "give up your rights" refers to rights to free speech, privacy and/or anonymity, freedom from unreasonable searches and seizures, and things like that. Those are obviously deserving of protection, and should be though of as intrinsic for sentient life. The right we are talking about here is the right to collect money from people who independently came up with your idea.

    It isn't possible to prove a negative, so someone can't prove they didn't see a patent (or the actual invention, before or after the patent filing). Since there is no way (that I've thought of) to distinguish someone who copied the invention from someone who came up with it independently, the only way to stop an invention from being copied is to treat independent inventors as infringers. The western-capitalist patent system works that way, and so grants the right to collect money from independent inventors. I see that right as a bad side-effect of the system. The system was designed to benefit inventors, but I don't they that is a fair benefit.

    What I object to here is someone who didn't contribute anything to Ebay, ever, trying to get money from them. He is legally allowed to do this, but I see it as extortion. No legal system is perfect, and unfortunately the patent system allows this kind of extortion. To take advantage of this characteristic (dare I say flaw or loophole) in the system when it could seriously damage things, is nasty, IMHO. It may be possible to design a system where maximally greedy behaviour by some or all participants leads to optimum levels of happiness (or other form of goodness) for everyone, but the current situation of countries and their laws around the globe is not it. (I think being happy and enjoying life is the most important thing. Further, one of the things that makes me happy is when other people have a fair chance to be happy, which isn't happening in a lot of the third world.)

    Additionally, some /.ers claim that this patent was actually filed after Ebay started running. This would be proof that Ebay came up with their ideas without input from this guy. The case where the independent invention was before the patent is one case where the patent system is fair to the independent inventor, as the patent is disallowed because of prior art. If this happens, it will be exactly what the weasel deserves.

    --
    #define X(x,y) x##y
    Peter Cordes ; e-mail: X(peter@cordes , .ca)