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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.

47 of 163 comments (clear)

  1. Oops, the beast escaped by ClosedSource · · Score: 4, Funny

    Looks like the monopoly-conviction-avoiding-patent-hoarding beast that is the true soul of IBM managed to escape for a few moments. I'm sure he will be back in his cage before the new IBM true-believers notice him.

    1. 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
    2. 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.

  2. 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 Shados · · Score: 5, Interesting

      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.

    2. Re:An old slogan comes to mind by db32 · · Score: 4, Interesting

      I suspect the same. Amazon has a pretty sketchy track record as far as patents go, and while IBM isn't perfect, they have been turning loose alot of their projects into the OSS world and generally playing nice with the OSS crowd. I think while they are also serving their own interests, they deserve some credit for their handling of a certain fiaSCO.

      It may be my wishful thinking, but fair and honest business practices don't always cause the fastest growth, they do tend to lead to the best long term growth. So IBM just may be swinging the big stick to get Amazon back in line.

      --
      The only change I can believe in is what I find in my couch cushions.
    3. Re:An old slogan comes to mind by foamrotreturns · · Score: 2

      Another good one that came to my mind was "What goes around comes around."

    4. Re:An old slogan comes to mind by Gulik · · Score: 4, Interesting

      "Live by the sword, die by the sword."

      Of course, with IBM's patent portfolio, they can match you sword-for-sword and still have fifteen thousand left to swing at you after you've run out.

      Which won't protect them from any of those patent litigation firms, but then there's still the sheer megatonnage of IBM's legal department to contend with.

    5. 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.

    6. Re:An old slogan comes to mind by rts008 · · Score: 2, Informative

      Good point.

      "...IBM's legal department to contend with."
      They were not referred to as the Nazgul without reasons.

      These guys will be serious contenders in almost any arena that IBM will choose to enter.

      IBM may be a shadow of it's peak days, but they are no punks still today. They have proven themselves survivors in markets that have extreme turnover rates, and a lot of corporate corpses laying by the wayside to prove it.

      Anymore, it gets more difficult to pick sides in the patent/IP battle.
      IBM vs. SCO- no problem picking sides there, IBM vs. Amazon- not as clear-cut for me, but I'm leaning towards IBM's side for this one just based on both of their track records.

      --
      Down With Slashdot BETA!!! I've been around the corner and seen the oliphant; you can only abuse me from your perspecti
    7. Re:An old slogan comes to mind by Halo1 · · Score: 5, Informative

      I wouldn't be surprised if the ONLY reason they used this against Amazon, is because Amazon does the same thing to others.

      Then be very surprised. IBM has a long history of strong-arming other companies with its patent portfolio and extracting license money from them. In fact, Marshall Phelps (who now works for Microsoft fwiw), turned IBM's sleeping patent portfolio into a $1+ billion profit.

      --
      Donate free food here
  3. 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
  4. 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...

  5. Amazom receives what it deserves by oliderid · · Score: 4, Informative

    The article says that Amazon is fighting unfairly against their competition with their One click patent. They are trying to close down other web sites. They just receive their own medicine. I'm sure these connoisseurs will appreciate it.

  6. 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?

  7. 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.
  8. Re:Nothing for you to see here. Please move along. by Aqua_boy17 · · Score: 5, Informative

    If IBM holds a patent for 'Posting messages to an interactive service' there may well be. I mean, some of these are pretty broad:

    US 5,796,967 - Presenting Applications in an Interactive Service.
    US 5,442,771 - Storing Data in an Interactive Network.
    US 7,072,849 - Presenting Advertising in an Interactive Service.
    US 5,446,891 - Adjusting Hypertext Links with Weighted User Goals and Activities.
    US 5,319,542 - Ordering Items Using an Electronic Catalogue.

    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? Storing data in an interactive network? How broad is that net?

    --
    What if the Hokey Pokey really is what it's all about?
  9. Reminded of a story by Infernal+Device · · Score: 4, Interesting

    I have no idea whether this is true or not, but it's a decent story anyway.

    IBM is negotiating with Sun regarding a patent of some sort (which one doesn't matter). Sun goes through this whole dog-and-pony about exactly where Sun's patent comes into play and how much it's going to cost IBM.

    Long silence.

    An IBM lawyer clears his throat and says they're going to go back to Armonk and dig through their thousands of patents and see just which ones Sun has violated since the company started.

    IBM gets the patent license for free.

    Like I said, no idea if it's true or not, but it's illustrative of the power of IBM and their patent catalog.

    --
    "My God...it's full of trolls!"
    1. 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.

    2. Re:Reminded of a story by _|()|\| · · Score: 5, Interesting

      This Forbes article is more in line with my recollection of the story. IBM approached Sun with a handful of bogus patents, which Sun's engineers handily debunked. However, rather than risk IBM digging through its portfolio for actually infringed patents, Sun coughed up the protection fee.

  10. Re:Prior Art? by the+eric+conspiracy · · Score: 2, Interesting

    I don't see anything in the MoaD that would be prior art for e-commerce. I'd be much more inclined to cite simple mail order with an order taker sitting at a terminal or France's (what was that called?) as prior art.

  11. And then there's... by HiggsBison · · Score: 5, Funny

    Doesn't SCO or somebody have it locked up with:
    "A Method for Doing Stuff with Things" and
    "A Method for Doing Stuff with Things Involving a Computing Device"?

    --
    My other car is a 1984 Nark Avenger.
    1. Re:And then there's... by Amazing+Quantum+Man · · Score: 4, Funny

      Ha! I own "A Method for Doing Stuff with Things... On the Internet!"

      --
      Fascism starts when the efficiency of the government becomes more important than the rights of the people.
    2. Re:And then there's... by networkBoy · · Score: 4, Funny

      Well I have doing things with stuff on tubes.
      So there!
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    3. Re:And then there's... by Ubergrendle · · Score: 2, Funny

      I regret to inform you that your patent "A Method for Doing Stuff with Things" (#52418761) is a derivative of my patent "Doing Stuff" (#000002), and as such the subjects you to a usage fee. Please contact my attorneys to negotiate the terms of your personal bankruptcy.

      --
      John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
  12. 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.

  13. 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.
  14. Karma's a bitch by Anonymous Coward · · Score: 2, Informative

    ... ain't she, Jeff? Couldn't have happened to a slimier company.

  15. 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
  16. Re:A cross-licence thing ? by psykocrime · · Score: 3, Funny
    This will be settled when Amazon agrees to ditch all their Sun servers and put in an IBM zSeries server or 10, move all their middleware to WebSphere, move to Rational development tools, install DB/2, implement a full-suite of Tivoli products and deploy Lotus collaboration tools.


    It would have been cheaper for Amazon to just license the patents.

    --
    // TODO: Insert Cool Sig
  17. 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".

  18. Re:Nothing for you to see here. Please move along. by RevMike · · Score: 3, Funny

    If IBM holds a patent for 'Posting messages to an interactive service' there may well be. I mean, some of these are pretty broad:

    US 5,796,967 - Presenting Applications in an Interactive Service.
    US 5,442,771 - Storing Data in an Interactive Network.
    US 7,072,849 - Presenting Advertising in an Interactive Service.
    US 5,446,891 - Adjusting Hypertext Links with Weighted User Goals and Activities.
    US 5,319,542 - Ordering Items Using an Electronic Catalogue.

    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? Storing data in an interactive network? How broad is that net?

    And I'm absolutely sure that there is no point in reading the applications. After all, there is no possible way that the actual claims might be substantially more specific and narrow.

    The other day I flipped through the card catalog at my local library. In a few hours I absorbed a subtantial fraction of Western culture and learning.

  19. 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.
  20. Re:Nothing for you to see here. Please move along. by Hartmeister · · Score: 5, Interesting

    People are thinking that IBM bought these patents or just went fishing. I'm sure these patents are from the IBM-Sears joint Prodigy service. Prodigy really was ahead of its time in many of its concepts.

  21. Re:Prior Art? by RevMike · · Score: 4, Informative
    My first thought on this was that one of the criteria of granting a patent is that the concept is "non-obvious". And when I saw that one of the patents was "Ordering Items Using an Electronic Catalogue", I thought "that's very obvious!".

    Actually, it isn't as obvious as the title would make it seem. Google it and read the actual application.

    Essentially, it is about automating B2B supply chain management. Catalogs from several vendors are stored on publicly available servers. A potential purchaser makes a private copy combining the items from several vendors into a single catalog, then modifying that catalog with privately negotiated price structures and terms for those vendors. Then the PO is generated and transmitted directly to the vendor.

    So it is not about simply doing what we've always done with mail-order, it is about efficiently comparison shopping and maintaining private price lists for use by procurement functions in a business.

  22. Re:Screw it, I'm going Amish by Anonymous Coward · · Score: 2, Interesting

    I have worked at IBM as an intern and they have a very strong culture of encouraging patents. They even have a RPG-like level system where you get points and bonuses for every patent you file. A lof of the patents I heard about that people had filed where very obvious and simple and/or probably useless. It makes you wonder if IBM actually benifits financialy from all their patents, however, the manager type people I spoke to all said they make IBM LOADS of money. IBM really really loves patents.

    Part of it is that IBM's patents from the 70s on really basic things that are now in every computer are expiring and they want to replenish their porfolio.

  23. 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.

  24. Re:But if by JohnFluxx · · Score: 2, Interesting

    Reminds me feynman:

    "There are so many ideas about nuclear energy that are so perfectly obvious, that I'd be here all day telling you stuff," [Feynman says in exasperation to "a very nice fella" from the U.S. Patent Office visiting him at Los Alamos.] "Example: nuclear reactor...under water...water goes in...steam goes out the other side...Pshshshsht -- it's a submarine. Or: nuclear reactor...air comes rushing in the front...heated up by nuclear reaction...out the back it goes...Boom! Through the air -- it's an airplane. Or: nuclear reactor...you have hydrogen go through the thing...Zoom! -- it's a rocket....There's a million ideas!" I said, as I went out the door."

    a few months later the attorney told him: "That the submarine was taken... but the nuclear rocket and airplane are yours!"

  25. Whowa... by Eric+Damron · · Score: 3, Interesting

    "Some of the patents in question go back to the 80s..."

    Wow, I thought that patents were fairly short lived! Can someone tell a layman how long can software patents potentially crush innovation?

    --
    The race isn't always to the swift... but that's the way to bet!
  26. 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.
  27. Hate to bring this up but... by ebresie · · Score: 2, Interesting

    So does US 5,446,891 - Adjusting Hypertext Links with Weighted User Goals and Activities. mean that Google might be infringing also?

    --

    Eric B
    ebresie@gmail.com
  28. Re:Nothing for you to see here. Please move along. by doom · · Score: 4, Informative
    Aqua_boy17 wrote:
    Well, after all this is /. You should be happy that I at least even read part of TFA. Now you expect me to actually go and look up the applications before getting all up in arms?

    Not to mention the fact that if you're a software developer, the standard advice is to avoid knowing anything about the details of software patents. If they can argue you "knowingly infringed" on a patent you're up for triple damages.

    I suspect this is one of those things where the situation is so stupid, no one can believe it's the case -- the patent system is designed to encourage publication of useful technical information, but this triple-damages rule means that no one can read it.

  29. From TFA by micromuncher · · Score: 2, Informative


    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.

    Note the algorithmic detail hidden in the patents hide some of the totally obvious "Hey isn't that common sense?" and "How can they patent that!?"

    Of course I agree that on the surface, the patent claims are "insane" which is why Amazon ignores IBM. Almost as insane as a patten for a one-stop-buy button. The system is way broken, but read the patents yourselves to jump to the same conclusion.

    --
    /\/\icro/\/\uncher
  30. Re:Nothing for you to see here. Please move along. by Kaenneth · · Score: 2, Interesting

    I used to work for Sears, and I thought it really unfortunate that they closed down the famous 'Sears Catalog' shortly before the Internet took off.

    If that shipping infrastructure remained in place, but just added a Web front end, they could have been THE online store, with their brand recognition.

  31. Geeks: KNOW THY HISTORY! by cr0sh · · Score: 2, Interesting
    Whether this is true or not, what I wonder if people here realize just how long IBM has been around - in one form or another, IBM has been around since (roughly) 1890.


    That was the year the US Government needed a faster, better, more accurate method to tally the census figures for the nation. By constitutional mandate, it was decreed that the census needed to be counted every 10 years. The census prior to the 1890 census had just been totalled by the time 1890 rolled around (it took 7 years to total the 1880 census) - it was feared that the new census would not be totalled before the next one was due, putting everything further behind. A new system was needed.

    After various trials and tests, Herman Hollerith's electro-mechanical tabulation system, utilizing punch cards, won the day, processing the census in 2.5 years. His company and machines went on to perform many other functions with businesses (most notably with railroads and some department stores), governments, and other institutions which needed such processing.

    Hollerith's company, the Tabulating Machine Company, later merged with others and was named the Computing Tabulating Recording (CTR) Corporation. Later, under the direction of Thomas J. Watson, the company was renamed "IBM".

    Is it really any wonder about their patent portfolio regarding information technology?

    --
    Reason is the Path to God - Anon
  32. Re:Nothing for you to see here. Please move along. by Splab · · Score: 2, Funny

    Screw that, what is a library?