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EBay Subject of Patent Action

spatrick_123 writes "Yahoo! is reporting that a man named Bill Simon is pursuing action against EBay, claiming that he hold patents on essentially every aspect of their operation. Whether or not this is a precedent setting case, it is certainly a large one in terms of what is at stake financially and it will be interesting to watch it play out."

24 of 206 comments (clear)

  1. Just two more years.... by shoemakc · · Score: 4, Funny


    ...until I reveal my talking paperclip patent to the world. Muahaha Muuuahahah

    -Chris

    --
    --an unbreakable toy is useful for breaking other toys--
  2. Christ.... by neksys · · Score: 4, Interesting
    Things like this really bother me. It'd be one thing if this guy had a valid and real concern about this so-called patent infringement - in which case, he should have approached ebay early on so as to prevent any conflict. Rather, it seems to me at least, that this man has waited until ebay is a multi-billion dollar organization - likely in the hopes of getting some sort of hefty settlement. I see things like this all the time, and frankly, it sickens me - both the patent process, and this culture of frivolous lawsuits that has swept across America in the past couple of decades.

    On second thought, perhaps I should just consider suing Microsoft for infringing on my US Patent #173087007: A Plan and Method for basing a multinational technology corporation in the state of Seattle.

    1. Re:Christ.... by AnimalSnf · · Score: 4, Informative
      Make sure to get the facts first before you go looking for rope:


      "MercExchange founder Thomas Woolston, an inventor and patent attorney who has been granted four online auction-related patents since 1998 and has some 10 others pending, said 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. 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.

      "We expect to be vindicated at trial," Woolston said. "They are rank infringers." ...

      At the heart of the case is patent paperwork Woolston filed less than five months before eBay founder Pierre Omidyar spent Labor Day weekend of 1995 creating the first iteration of his auction site. Today, eBay is one of the most successful online businesses, with nearly $750 million in revenue last year and continued profitability."

    2. Re:Christ.... by Alsee · · Score: 5, Informative

      Make sure to get the facts

      Errr, no.

      Those are the claims made by one side.

      E-bay claims Woolston came to them trying to sell his patents. They claim the relevant patent claims were added in a revision long after the original filing date - after E-Bay was up and running which would the patent invalid. E-Bay also claims to have found prior art which would also render the patent invalid.

      If you want facts, Woolston has also sued Priceline over a different patent (yet to be resolved), and GoTo.com over YET ANOTHER patent (settled out of court).

      This guy is making a career of filing patent suits. He has yet to actually win a case.

      Even if he did win, many people think this entire class of patents should never be granted in the first place.

      -

      --
      - - You can't take something off the Internet! That's like trying to take pee out of a swimming pool.
  3. Old news by ma++i+ude · · Score: 5, Informative
    This was already reported about three weeks ago here.

    Interesting none the less.

    --
    You can't shut us down! The Internet is about the free exchange and sale of other people's ideas!
  4. "Consignment nodes" by N+Monkey · · Score: 5, Informative

    I just did a quick search on the USPTO and there are indeed a patent listed for "Woolston" (who was named as the inventor in the article). For those interested, the page is
    Patent 5,845,265 - Consigment Nodes. It was filed back in 1995. I haven't looked at the claims etc.

    While doing the search, I noticed some other auction patents, such as one titled "Distributed Live Auction" that is assigned to Amazon.

    1. Re: "Consignment nodes" by Freezebot · · Score: 5, Informative

      Here is the patent abstract (take a deeeep breath):

      Consignment nodes

      Abstract
      A method and apparatus for creating a computerized market for used and collectible goods by use of a plurality of low cost posting terminals and a market maker computer in a legal framework that establishes a bailee relationship and consignment contract with a purchaser of a good at the market maker computer that allows the purchaser to change the price of the good once the purchaser has purchased the good 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.

      Wow!

      This is an LONG sentence...

    2. Re: "Consignment nodes" by JWW · · Score: 5, Insightful

      That could have been said simpler:

      I'm going to do an auction and use the computer for bidding and exchanging the money between the seller and buyer.

      Dammit, BUSINESS METHODS THAT CAN BE MOVED TO THE COMPUTER SHOULD NOT BE PATENTABLE!!!

  5. I know reading the article is bad but... by Tsuzuki · · Score: 5, Informative

    it's about a guy called Tom Woolston, not Bill Simon. The latter happens to be the subject of an apparently related headline, where Bill Simon is being sued by eBay and not the reverse.

  6. And for my next patent... by geordie · · Score: 5, Funny

    I'm going for the patent rights on the use of black typeface on a white background for the purpose of displaying details of and discussing stupid patents

  7. How can anyone stand up and say... by junklight · · Score: 5, Insightful

    that this patent system is fair or protects anyone?

    The person who holds the patents - even if they are valid - did not do the difficult thing which is set up a successful company around the idea. If he had been trying to run an auction company and had been driven out of business or was being threatened by ebay then maybe he would have a gripe. But ALL this guy has done is have a fairly obvious idea (lets face it - letting people sell stuff to one another is not that new - car boot sale patents anyone?).

    The patent office should take a long hard look at what it is trying to achieve.

  8. Why can you patent an age old concept? by MikeFM · · Score: 5, Insightful

    Auctions have been around for 1000's of years in some form or another. How can anyone claim to own the idea? I certainly remember online auctions before EBay was even a pipe dream and even before the web came into being. Taking a common idea and slapping 'online', 'electronic', 'web', etc on it does not make it a new idea. Spreadsheets were a new idea.. there really is no real world equivilant.. but online auctions are obvious.

    I'm all for screwing the big corporations but get with the show and invent something real and stop trying to get rich off pantenting the obvious.

    --
    At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
    1. Re:Why can you patent an age old concept? by chthon · · Score: 4, Interesting

      FWIW, electronic spreadsheets where created from paper spreadsheets, a technique which is used in theoretical mechanics to compute resulting vectors in space.

      If you lookup the story about spreadsheets from Dan Bricklin, you will find that they really started from this concept.

      With computers, you can automate many things which where previously cumbersome.

      However, with computers you can do things that are impossible in reality : magic, anti-gravity, maybe we should go for patents on these because we can implement them on a computer...

  9. Ummmm... copy editors? Fact checkers? by Megahurts · · Score: 4, Interesting

    The article never mentions anyone named Bill Simon. Given that a man by the same name is running for Governor of California and is constantly protrayed by his opponent as a scandalous and shady businessman, the crew of slashdot might just want to be a little more careful about what they allow on the front page. Libel tends to be expensive.

  10. We really need an open patent "office" by fluor2 · · Score: 5, Interesting

    Somebody please try open a open-"sourced" patent office! As we all know, patents cannot be claimed if they allready exist in some sort of written format. So we need a forum where we can post all kinds of ideas, and then claim we own them if somebody try patent them.

  11. Recursion is your friend by HiQ · · Score: 5, Funny

    Maybe he can put his patent up for auction on eBay...

  12. Novelty by Drownedrat · · Score: 5, Insightful
    I may be mistaken but I believed one of the conditions on granting a patent is novelty.

    There seems to be a lot of patents being issued for an old idea in a new medium.

    An online auction is still an auction. Putting a picture, or a song on a computer doesn't stop it being a picture or a song.

    Patents of this kind are purely money grabbing schemes, often by people who have spotted the new medium & have no plan to exploit the idea, just rip off those who do.

    It's basically a different type of domain squatting. (Wonder if I could patent it as such...)

    D.

  13. Sort it out Timothy by OrangeSpyderMan · · Score: 5, Insightful

    Come on - get it together. Of the handful of stories you've just put up, some are reposts, some are badly written, some are untrue (cf. Bill Simon). What is wrong with you? Can't you or don't you read the stories before you publish? Don't you read the links the story includes, or check that the story isn't already up? I can understand you not doing it for all the stories that are submitted, but please at least do it for those you chose to publish.

    This could be useful to help you decide if you really are an editor or not.

    --
    Try NetBSD... safe,straightforward,useful.
  14. More about Simon by Spunk · · Score: 5, Informative

    Bill Simon is running for Governor of California and created this clever parody site about his opponent, incumbent Gray Davis. Ebay is not too pleased.

  15. Now you'll see patent reform.. by i_want_you_to_throw_ · · Score: 5, Funny

    Now that someone big enough to pay off congressmen is getting picked on.

    Damn shame it's not Amazon.

  16. Purpose of patents by sjoperkin · · Score: 5, Informative

    A patent is, first of all, not even a constitutional right. The constitution says that congress may provide inventors with certain rights to their invention. This lead Jefferson et. al to set up the first patent board some 200 years ago.
    Now, for a patent to be granted, the invention it describes must be:

    New

    Useful

    Nonobvious

    For a good definition of new, see new

    The useful property is questionable, but the nonobvious is very interesting, see nonobvius

    A quote from this link:

    It was never the object of patent laws to grant a monopoly for every trifling device, every shadow of a shade of an
    idea, which would naturally and spontaneously occur to any skilled mechanic or operator in the ordinary progress of
    manufactures. Such an indiscriminate creation of exclusive privileges tends rather to obstruct than to stimulate
    invention.


    And that kind of sums it up...

    Another purpose of the patent idea, combined with licensing, was to open up trade secrets. Let the rest of the world know how we do it, so that all may benefit. But, if you want to use it, you need to license it.

    Again, a good idea spoiled by insane capitalism.

    Don't get me wrong, I'm a genuine capitalist, but it is scary to see what happens when capitalism goes berserk.

  17. Re:This can only speed up the collapse of patents by nagora · · Score: 4, Insightful
    Does anybody really believe that in, say, 20 years time, patents will still exist?

    Given that the whole of US copyright has been distorted just in order to protect Mickey Mouse, I'm not optimistic that patent law will be reformed in this century.

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  18. This guy's patents are bunk by Eagle7 · · Score: 5, Insightful

    If you go here: http://mercexchange.com/invintprop.html

    and check out this guy's company's site... the patents are bunk. He has patents for agents that search multiple auctions and marketplaces, he has a patent for routing packets based on hierarchical information in it's headers. This is stuff that 1) has very obvious analogs in meat-space, and is therefore no more of a leap than ecommerce is a leap from mail-order commerce, or 2) are things that any software developer worth his or her salt would come up with in the course of solving a problem involving, say, routing packets. This guy isn't and inventor - he's a patent lawyer who finds little obvious holes in the current canvas of patented technologies, and grabs the patents with the hopes of licensing them. I'm unimpressed.

    --
    _sig_ is away
  19. Re:Why not? by FreeUser · · Score: 4, Insightful

    What reason can you offer to distinguish methods that can be moved to the computer from those that cannot be moved to the computer?

    The original poster can't, and shouldn't. He could have spared some verbiage and made the much more accurate statement:

    "Dammit, BUSINESS METHODS SHOULD NOT BE PATENTABLE. " Period. The same goes for mathematical algorithms, conceptual ideas (which are supposed to be unpatentable in theory but for which patents are regularly granted), or even any specific idea or design which the patenting party has not built themselves first. No more patenting a matter-antimatter motor unless you've built and operated the damn thing first.

    --
    The Future of Human Evolution: Autonomy