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Amazon Cries 'Uncle' to End IBM Patent Feud
theodp writes "Amazon will pay an undisclosed amount to IBM to settle a long-running patent feud, and the two companies have agreed to a long-term patent cross-licensing agreement. Information Week wonders if an insurance dispute prompted Amazon's settlement, noting that Atlantic Mutual sued Amazon back in March to escape any obligation to reimburse the e-tailer should it lose the case brought by IBM. Amazon had relied on Atlantic Mutual's backing in an earlier legal battle it waged against tiny InTouch. 'Amazon, whose chief executive, Jeff Bezos, is a vocal advocate of patent reform, has had numerous patent issues in the past. In 2005, the technology used in its 1-Click checkout system came under scrutiny as potentially infringing upon a similar product made by a small Virginia-based company called IPXL Holdings. Meanwhile, the US patent system itself is experiencing growing pains as Congress continues to explore the possibility of updating it to better serve the needs of the 21st-century business world.'"
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=P TO1&Sect2=HITOFF&d=PG01&p=1&u=%2Fnetahtml%2FPTO%2F srchnum.html&r=1&f=G&l=50&s1=%2220050156873%22.PGN R.&OS=DN/20050156873&RS=DN/20050156873
Valkyrie is about to die! Wizard needs food -- badly!
It's pretty clear you haven't even looked at the "Patent Reform Act of 2007." Among its highlights include a quick post-grant opposition procedure and serious limitations on the damages an infringer may be liable for. Both of these will make all patents "less enforcible."
Here are some more informed opinions on the legislation:8 1 l ?articleID=199400075
http://www.law.com/jsp/article.jsp?id=11780966825
http://www.eetimes.com/news/semi/showArticle.jhtm
My own introduction to the realities of the patent system came in the 1980s, when my client, Sun Microsystems--then a small company--was accused by IBM of patent infringement. Threatening a massive lawsuit, IBM demanded a meeting to present its claims. Fourteen IBM lawyers and their assistants, all clad in the requisite dark blue suits, crowded into the largest conference room Sun had.
The chief blue suit orchestrated the presentation of the seven patents IBM claimed were infringed, the most prominent of which was IBM's notorious "fat lines" patent: To turn a thin line on a computer screen into a broad line, you go up and down an equal distance from the ends of the thin line and then connect the four points. You probably learned this technique for turning a line into a rectangle in seventh-grade geometry, and, doubtless, you believe it was devised by Euclid or some such 3,000-year-old thinker. Not according to the examiners of the USPTO, who awarded IBM a patent on the process.
After IBM's presentation, our turn came. As the Big Blue crew looked on (without a flicker of emotion), my colleagues--all of whom had both engineering and law degrees--took to the whiteboard with markers, methodically illustrating, dissecting, and demolishing IBM's claims. We used phrases like: "You must be kidding," and "You ought to be ashamed." But the IBM team showed no emotion, save outright indifference. Confidently, we proclaimed our conclusion: Only one of the seven IBM patents would be deemed valid by a court, and no rational court would find that Sun's technology infringed even that one.
An awkward silence ensued. The blue suits did not even confer among themselves. They just sat there, stonelike. Finally, the chief suit responded. "OK," he said, "maybe you don't infringe these seven patents. But we have 10,000 U.S. patents. Do you really want us to go back to Armonk [IBM headquarters in New York] and find seven patents you do infringe? Or do you want to make this easy and just pay us $20 million?"
After a modest bit of negotiation, Sun cut IBM a check, and the blue suits went to the next company on their hit list.