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IBM Sues Amazon For Patent Infringement

A large number of readers wrote in about IBM suing Amazon over commerce patents. The Ars Technica coverage linked is one of the few sources that goes beyond the brief AP or Reuters stories that everyone is running. Here is IBM's press release. Some of the patents in question go back to the 80s and they do seem to pretty much wrap up the idea of online commerce, if they prove valid. IBM says many others are licensing the patents but Amazon won't give them the time of day on the subject.

18 of 163 comments (clear)

  1. An old slogan comes to mind by Kelson · · Score: 5, Insightful

    As crazy as this patent insanity gets, I can't help but think of the phrase, "Live by the sword, die by the sword."

    1. Re:An old slogan comes to mind by bcattwoo · · Score: 2, Insightful
      Indeed. Actualy, considering IBM's track record, which while not perfect, is not quit in line with a patent troll...I wouldn't be surprised if the ONLY reason they used this against Amazon, is because Amazon does the same thing to others.

      I would. IBM is going to spend millions of dollars on a lawsuit just to prove a point to Amazon?? Perhaps Amazon will respond with an "I know you are, but what am I?" countersuit.

  2. what IBM wants by wardk · · Score: 5, Insightful

    IBM just wants amazon to let them use the heralded one-click "invention" without royalties. this is their first offer.

    1. Re:what IBM wants by griffjon · · Score: 2, Insightful

      This actually has a lot of validity. In my ideal world, IBM actually wants Amazon to start putting some of its more overreaching business process/software patents into some patent commons, like IBM has already done. Most corps have to pursue patents for everything they can possibly try, because everyone else is doing the same. The amount of patent infringement that happens every day is insane, but all the corps have big enough patent portfolios that it's a mutual-self-destruction effect keeping everyone from enforcing their rights too strongly.

      --
      Returned Peace Corps IT Volunteer
    2. Re:what IBM wants by Anonymous Coward · · Score: 1, Insightful
      IBM makes lots of money from hardware and basic technoligy payments, but, doesnt have a history of enforcing software patents, I mean you dont here of IBM demanding money for SQL, semaphores, emulating an instruction set etc. etc.
      IBM no doubt saves a lot of money by having not having to license software patent portfolios from every company with a patent and a prayer, as well. This is achieved by clearly being the party with more patents when it comes time to cross-license. No doubt they would like to extend their untouchable status into the ecommerce arena in which Amazon has a few patents. IBM sues Amazon, Amazon countersues... at some point IBM would like Amazon to agree that their portfolio pales before the IBM behemoth, or they would like to courts to make that finding. Then some agreement is signed, perhaps a few dollars exchanged, but more importantly IBM doesn't have to worry about Amazon's patents any more.
  3. Oh my by Ixne · · Score: 2, Insightful

    US 5,319,542 - Ordering Items Using an Electronic Catalogue.

    Too bad Sears Roebuck didn't have the same idea a century ago, eh? Then non-inperson sales would never have existed...

  4. Obviousness doesn't matter anymore by Cracked+Pottery · · Score: 2, Insightful

    It hasn't since business methods and software have been patented. Check out the Eastern District of Texas. This is a popular venue for patent litigation plaintiffs. They apparently aren't inclined to waste a lot of time reviewing the original appropriateness of patents in the cases they hear. What's with the two seperate courts?

  5. Re:Prior Art? by AdamKG · · Score: 3, Insightful

    It would be interesting, but, in the long run, ultimately futile.

    I for one do not beleive patents are in and of themselves a bad thing. The problem with patents is that the best way to use them, business-wise, is to patent obvious things, obfuscate that in your application, and then sue, sue, sue. There are ways to reward innovation that do not encourage this model, however, and that is what we should adopt.

    So, how? I would argue that we should use a method in which patents are universal, that is, a patent holder can either keep everyone from using his patent, or no one. Thus, the impetus is on the filer to file a good patent, so that a company or a consortium of companies (or, potentially, the USPTO if they weren't such a mess) would buy/liberate/open the patent. At that point, it would be open competition on the free market. Companies would no doubt try and pay as little as possible for patents, but that's the case as well today. The gains would be well worth it: Patent litigation would center on only issues of innovation and prior art, not on licensing follies. Innovating companies could continue to do full-time innovation, and the public would see dramatically reduced prices.

    I'm sure I'm missing things, of course, so feel free to point them out...

    --
    groupthink: It's good for self-esteem.
  6. Re:But if by Mikachu · · Score: 2, Insightful

    Normally I'd say you have a point, because I agree that the patent system is a load of BS, but at the time in which the patent was filed, I would very much doubt that e-commerce was as "fundamental" as you make it out to be.

    Ask your grandfather if he could have forseen people ordering something from his home with the click of a button and have it arrive at his house in the morning.

  7. Re:Oops, the beast escaped by Fozzyuw · · Score: 3, Insightful

    Is this seriously all you have to do?

    IBM said that Amazon.com has willfully infringed and continues to infringe on a number of key IBM patents, including: 1. US 5,796,967 - Presenting Applications in an Interactive Service. 2. US 5,442,771 - Storing Data in an Interactive Network. 3. US 7,072,849 - Presenting Advertising in an Interactive Service. 4. US 5,446,891 - Adjusting Hypertext Links with Weighted User Goals and Activities. 5. US 5,319,542 - Ordering Items Using an Electronic Catalogue.

    I'm going to patent "interacting in an interactive environment" and let the $ roll in for my 'patent'. Or maybe I can patent "doing stuff"? Or has that been taken already?

    What's more concerning, does this mean if I create my own shopping cart, review system, or recommendation system, that I can get sued from IBM? If I build my own car, will I get sued by Ford or GM? I guess I'll have to have sheep with lazers on their heads as "aquatic animals with lasers on their heads" might have been patented by now.

    Cheers,
    Fozzy

    --
    "The past was erased, the erasure was forgotten, the lie became truth." ~1984 George Orwell
  8. And so it begins... by RAMMS+EIN · · Score: 2, Insightful

    ``IBM Sues Amazon For Patent Infringement''

    And so it begins...

    --
    Please correct me if I got my facts wrong.
  9. Re:But if by Phillup · · Score: 4, Insightful

    Normally I'd say you have a point, because I agree that the patent system is a load of BS, but at the time in which the patent was filed, I would very much doubt that e-commerce was as "fundamental" as you make it out to be.

    Name a form of communication that has NOT been used for commerce.

    --

    --Phillip

    Can you say BIRTH TAX
  10. Re:Reminded of a story by duranaki · · Score: 2, Insightful

    I remember a similar story between Nokia and Toshiba (not sure about the second name, but it was Nokia for sure since I was working there at the time). Toshiba came in with an army of lawyers to dispute some mobile phone patent and was going to make Nokia pay. The single Nokia lawyer said, "We're happy to review all of your patent claims in detail. While we do, I wonder if you might look over our portfolio of patents in the Television industry?"

    Oops.. ok.. let's just forget the whole thing.

  11. No Kidding. by pavon · · Score: 5, Insightful

    IBM's patent portfolio is truly frightening in that the only thing preventing it from doing massive harm to the industry is self restraint and the enlightened self interest of wanting to remain relevant in the industry. Let's just hope their business never goes south. If you thought that the IP trolls that make money by buying the patents portfolios of failed start-ups was bad, just imagine the hell that will be unleashed if IBM enters a downward spiral and decides to "refocus the company revenue strategies on their intellectual property licensing opportunities".

  12. Re:Nothing for you to see here. Please move along. by Mydron · · Score: 4, Insightful
    Without reading the actual applications, it sounds to me like that covers like 99% of anyone selling or storing anything on-line. I mean, WTF?
    Here's a tip: a patent's legal boundaries are NOT defined by it's title. As disappointing as it might be, you actually do have to read the patent and, in particular, its claims. The claims of a patent (in light of the patent's specification) define it's legal boundaries. Even the specification itself is not enough. I could describe every conceivable phenomena in the universe and the allowed claim might read: "A red thimble made out of tin with thirteen divots arranged in a circular pattern on the exterior of said thimble." Clearly I've patented much less than all conceivable phenomena.

    The title of a patent is intentionally broad. The issue is that otherwise patent infringer's can argue in court that they earnestly looked for applicable patents before they implemented their widget but they couldn't find any such patents. They will argue that if they did infringe they did so by accident. (Patent holders get thrice damage from infringer's who willfully infringe compared to infringer's who do so by accident.) A patent holder doesn't care to entertain such arguments so they intentionally title their patents very broadly, thus ameliorating the issue.
  13. Re:Oops, the beast escaped by SillyNickName4me · · Score: 2, Insightful

    IBM is a company interested in making proffit. they are neither good or evil. The existance of Linux is highly proffitable for them, so they encourage it. It has nothing whatsoever to do with them believing in open source as such.

  14. Re:Nothing for you to see here. Please move along. by RevMike · · Score: 2, Insightful
    Ok then, here's claim 8 from the 5,319,542 patent:
    ...
    Its scope is not all that much narrower than the title.

    Sure, when you exclude claims 9 through 14, as well as ignore what was already cited as background art in section 2. B2C style e-commerce as typically implemented today is not claimed by this patent, having been already cited as background art using Prodigy as an example.

    A more interesting area to examine is the Objects:

    Therefore, it is an object of this invention to provide a new electronic procurement/requisition system and method which allow a purchaser's requisition system to be integrated with a catalog system, and a supplier computer system.

    It is another object of this invention to provide an electronic requisition system which includes public and private catalogs.

    It is another object of this invention to provide an electronic requisition system which allows individual customers to control the products and suppliers that may be ordered.

    It is still another object of this invention to provide an electronic catalog ordering system that allows the simultaneous display of competitive product information.

    It is still another object of this invention to provide private catalogs that are supplier maintained through access to the public catalog, thus significantly reducing customer maintenance of their private catalogs.

    It is another object of this invention to provide an electronic catalog ordering system which includes direct catalog maintenance by suppliers.

    So while the title is broad, the fact is that the actual text of the patent probably only applies to 1% of the catalog based e-commerce going on today.

    I find it mind-boggling that slashdot commenters frequently jump to conclusions, quickly skimming a short document looking for something that, out of context, might weakly fit a preconceived notion.

  15. Re:Nothing for you to see here. Please move along. by Waffle+Iron · · Score: 2, Insightful
    Sure, when you exclude claims 9 through 14
    Claim 8 is an independent claim. It isn't constrained by claims 9 through 14.

    B2C style e-commerce as typically implemented today is not claimed by this patent, having been already cited as background art using Prodigy as an example.
    The claims define the scope of the patent. Even if you subtract out the prior art, this claim incredibly broad. It essentially covers any use of a client-server online ordering where the order request happens to be passed through another computer that doesn't host the database.