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IBM Sues Amazon For Patent Infringement

Posted by samzenpus on Wed Nov 22, 2006 06:46 PM
from the they-did-it-first dept.
Petersko writes "It appears Amazon is about to be sued for patent infringement by IBM". From the article: "Hundreds of other companies have licensed the same patents, and IBM has tried to negotiate licensing deals with Amazon "over a dozen times since 2002," Kelly said. Amazon.com, which has bought a lot of hardware from Hewlett-Packard Co. over the years but not IBM, has allegedly refused every time."
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  • Almost a month old (Score:5, Informative)

    by jpetts (208163) on Wednesday November 22 2006, @06:53PM (#16959300)
    Dupe [slashdot.org].
  • Ouch (Score:2, Funny)

    by Anonymous Coward
    Turns out that Big Blue has a business method patent on abusing the patent system. Amazon should have seen that coming.
  • Patents (Score:5, Insightful)

    by Anonymous Coward on Wednesday November 22 2006, @06:56PM (#16959330)
    Our system has become based on the ridiculous premise that all inventors come up with ideas that nobody else could possibly have come up with.

    The patents system has devolved to be that if you are the first to file a piece of paper .. regardless of how obvious your idea is .. you win a monopoly on it for 20 years (with possible infinite extension via mickey mouse legislators).

    Just because you are the first to invent something, doesn't mean society would have been deprived of your invention were it not for you. It just means you got there first (thanks to better resources available to you). It's like a winner of a race claiming that if it wasn't for him, nobody else would have crossed the finish line.
    • Re:Patents (Score:5, Insightful)

      by Anonymous Coward on Wednesday November 22 2006, @07:09PM (#16959460)
      I have to agree.

      A good analogy would be the development of a race car. IBM is like the company that perhaps developed a car or two. Reasonable patents would probably be on the engine design, electronics, etc. Instead, however, the patent office has granted it the patent to "race cars"; disallowing anyone else from developing their own engines, electronics, or what have you, and putting it all together.

      Is the difference so hard to comprehend in technological contexts that the patent board is unable to differentiate between the two?
    • Just because you are the first to invent something, doesn't mean society would have been deprived of your invention were it not for you. It just means you got there first (thanks to better resources available to you).

      The idea is to protect people who invest those resources into developing technology from people who just wait for the technology to be invented and then just selling it without any of the research costs involved.

      What I do hate is that patents have turned from protecting a method of producti

    • Re:Patents (Score:5, Funny)

      by QuantumG (50515) <qg@biodome.org> on Wednesday November 22 2006, @07:25PM (#16959634) Homepage Journal
      On slashdot it doesn't matter if you're the first to do it, no-one else had ever thought of doing it, and no-one knew how to do it until you did it.. if the method can be explained in a sentence this audience is more than willing to call it "obvious" then make some claim about how something completely unrelated (that is also obvious) could be covered by the patent under question and therefore declare that not only will the lawsuit fail but the patent will be revoked by royal decree.
      • if the method can be explained in a sentence this audience is more than willing to call it "obvious"

        And I would bet that many other audiences would do as well. Those are commonly believed to have common sense of sorts.

        CC.
        • Re:Patents (Score:5, Insightful)

          by QuantumG (50515) <qg@biodome.org> on Wednesday November 22 2006, @07:52PM (#16959904) Homepage Journal
          Sigh. If I were to ask you how to do some technical task, without telling you how I am doing it, and you were to tell me my method, then it would be fair to say that it is obvious.. simple != obvious.
          • Sigh. If I were to ask you how to do some technical task, without telling you how I am doing it, and you were to tell me my method, then it would be fair to say that it is obvious.. simple != obvious.

            Unfortunately it's a prisoners' dilemma, because once I've told you the method, it's easy for you to claim that was what you were going to do anyway, and I have no way of proving otherwise.

            Similarly, if you tell me your method first then it's easy for me to claim _that_ as what I was going to tell you. Whoe

                • by Wolfier (94144) on Wednesday November 22 2006, @09:16PM (#16960600)
                  This is off-topic because ideas on their own cannot be patented.  Only implementations can be.  In the special case where the implementation is the same as the idea (e.g. look and feel), those *should* be protected by copyright instead.

                  In your examples, idea for a UI, Napster, YouTube - they have their specific implementations and only those are patentable (I'm sure there are at least 50 ways of implementing user interface, napster, youtube, slashdot or digg).

                  If you think these ideas are somewhat original, then let me tell you that ideas are a dime a dozen.  Don't worth anything at all unless it's elevated into something tangible, like an implementation.

                  Unless, of course, you may be confusing between an idea and an implementation.  Sometimes the line is blurred but it certainly exists.  Napster and YouTube - they have good business ideas.  Slashdot and Digg - the idea is a "community system" (which, again is a dime a dozen), but Slashdot and Digg are implementing it differently.
                  • by TekPolitik (147802) on Wednesday November 22 2006, @10:48PM (#16961212) Journal

                    ideas on their own cannot be patented. Only implementations can be.

                    Unfortunately this is not true - and that's the whole problem. These days patents - especially software patents - seek to eliminate anybody from achieving the same goal as the patent holder. You don't patent the implementation of the telephone, the first claim in your application is on the idea of a two way voice communication device. Then you claim (2) "the device in claim 1 wherein the voice is transmitted by modulated electrical signal over a wire; (3) the device in claim 1 wherein the voice is transmitted by modulated electromagnetic waves; (4) the device in claim 3 wherein the electromagnetic waves are radio waves; (5) the device in claim 3 wherein the electromagnetic waves are microwaves; (6) the device in claim 3 wherein the electromagnetic waves are visible light; ..."

                    If you look at a patent they always start with a very generic claim describing the idea as a whole, and if you implement something that matches that idea, you infringe. The patents then go on to claim each detail of the implementation and each combination of sets of details in the implementation, the idea being that if the first claim is knocked out one of the others might be upheld. The full implementation normally comes right at the end of the list of claims.

                    Companies are going off and trying to patent every idea they can find, not in order to protect their own investment which is usually negligible and almost always entirely irrelevant to the first claim, but in order to shut down or extort money from anybody else who need to use the idea to get something done.

    • Here's a thought (Score:5, Interesting)

      by mutube (981006) on Wednesday November 22 2006, @07:30PM (#16959666) Homepage
      Just because you are the first to invent something, doesn't mean society would have been deprived of your invention were it not for you. It just means you got there first (thanks to better resources available to you). It's like a winner of a race claiming that if it wasn't for him, nobody else would have crossed the finish line.
      If the purpose really is to reward valuable invention (vs. obvious extension) then a simple answer is this: In the event of someone re-inventing something which has been previously awarded a patent, with no evidence of copying, there should be two options available to the patent holder.
      • Add this new inventor to the patent & allow them equal share of licensing fees for it's remaining lifespan.
      • Revoke the patent.
      • Re: (Score:3, Insightful)

        If the purpose really is to reward valuable invention (vs. obvious extension) then a simple answer is this: In the event of someone re-inventing something which has been previously awarded a patent, with no evidence of copying, there should be two options available to the patent holder.

        The "no evidence of copying" is the sticky part. You're back to a system that requires that patent examiners be shrewd enough to understand the fundamental difference between one patent and the next. What would obviously

    • Re:Patents (Score:5, Informative)

      by trentblase (717954) on Wednesday November 22 2006, @08:20PM (#16960154)
      Our system has become based on the ridiculous premise that all inventors come up with ideas that nobody else could possibly have come up with.

      The system is not premised on the idea that nobody else could have come up with the idea. The system encourages people to take their ideas and reduce them to practice. Having the invention filed with the government exposes the knowledge to the public, who benefit where the alternative is keeping the details a secret.

      The patents system has devolved to be that if you are the first to file a piece of paper .. regardless of how obvious your idea is .. you win a monopoly on it for 20 years (with possible infinite extension via mickey mouse legislators).

      Unlike some other countries, the US is not a first-to-file jurisdiction. Instead, it is a first-to-invent jurisdiction, generally giving rights to the first person to come up with the idea. Furthermore, obviousness is a bar to patentability (although a challenger is not allowed the benefit of hindsight when making this obviousness determination). Except in very strange circumstances (usually involving government appropriation of defense-related inventions) there is no way to extend patent rights beyond 20 years. The mickey mouse legislators you refer to are dealing with copyright. Just because you are the first to invent something, doesn't mean society would have been deprived of your invention were it not for you. It just means you got there first (thanks to better resources available to you). It's like a winner of a race claiming that if it wasn't for him, nobody else would have crossed the finish line.

      The limited rights given to a patent holder is one of the main incentives that drives the metaphorical race you describe. Without patents, things would surely be invented... just not as quickly. And once they were, the details would be kept completely secret, robbing value to society. Without patents, here's how the race would go: once the winner reaches the finish line, all the other runners are instantly transported to the finish line and given gold metals. So what is the incentive for any one runner to be first? Nobody would run. They would more likely meander indifferently towards the finish line.

      I'm not some crazy lover of patents. I believe that some reform is in order. But the basic premise makes sense in our currently capitalist business environment.

  • by iSeal (854481) on Wednesday November 22 2006, @07:02PM (#16959392)
    The first paragraph in the article states:
    BOSTON, Massachusetts (AP) -- Key aspects of Amazon.com Inc.'s retailing Web site are improperly built on technologies developed at IBM Corp., Big Blue alleged Monday in two lawsuits against Amazon.
    It should read:
    BOSTON, Massachusetts (AP) -- Key aspects of Amazon.com Inc.'s retailing Web site are improperly built on very general concepts involving technology developed at IBM Corp., Big Blue alleged Monday in two lawsuits against Amazon.
  • Simple solution (Score:4, Insightful)

    by edwardpickman (965122) on Wednesday November 22 2006, @07:13PM (#16959496)
    Make lawyers a minimum wage job. All the lawsuits are costing the public a fortune and has placed the court system in perminate gridlock. We need to concentrate on crime not petty squabbling. Patents should be for significant inventions not every minor thing some one thinks up. Often times there's no thieft involved it's simply such an obvious idea that others are recovering the same ground and haven't a clue some suit ape patented the idea. Patents should help spur innovantion. If they don't they aren't in the publics interest. Patents are a creation for the publics interest and are not in the Constitution so when they work against the public they need to be revised. There is no inherent right to patents. I'm a big supporter of inventors rights but these aren't inventions they are similar to cybersquatting and need to removed from the patent process.
    • Re:Simple solution (Score:5, Insightful)

      by Daniel Dvorkin (106857) * on Wednesday November 22 2006, @07:33PM (#16959708) Homepage Journal
      Patents are a creation for the publics interest and are not in the Constitution so when they work against the public they need to be revised.

      Um, actually:

      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

      I agree with you entirely that we need to revise the way and extent to which patents are issued, but the fact is that the issuance and enforcement of patents (along with copyrights) is one of the fundamental purposes of the US government, as defined by the Constitution. (You can of course start an effort to get that section amended; good luck with that.) A better approach is to look at the explanatory clause -- "To promote the Progress of Science and useful Arts" -- and start ruthlessly revising those sections of IP law which do not work toward that goal.

      Step 1: if it's not a physical object, a working model of which can be presented at the time of filing, don't grant a patent. Period. End of story. No software algorithms, no "business methods," no DNA sequences, etc. -- software can go copyright; the other two examples shouldn't get IP protection at all -- and no speculative ideas for something that someone might want to make someday, either.

      Step 2: deem any patents which are not being actively exploited to be unenforceable, and the IP represented in them to be public domain. IOW, if you have a patent on something, you have to be either distributing it on the market, or be able to show that you're working toward the goal. Otherwise, everyone else gets a shot too.

      Step 3: require patent holders to defend their patents, as is the case with trademarks. If the patent holder could reasonably be expected to be aware of a violation -- as IBM certainly could be expected to be aware of Amazon -- require them to begin legal action within one (1) year or forfeit the claim.

      These three steps, if followed, would I think substantially reduce the amount of patent bullshit which is currently doing the exact opposite of "promoting] the Progress of Science and useful Arts." The lawyers whose clients still have a legitimate claim would still have plenty of work. Similar though not identical reform is needed for copyrights and trademarks; Step 1 in the former case is reducing the term of copyright to 20 years or so and keeping it there.
  • by kimvette (919543) on Wednesday November 22 2006, @07:20PM (#16959582) Homepage
    But I thought companies such as IBM only use their patent portfolios defensively, particularly concerning patents over trivial and/or obvious "inventions?" Isn't that what a number of users here have been claiming? I'm confused! ;)
    • They do say that a good defense is a good offense. Besides, annoying the heck out of the other guy has never been ruled out.
    • Re: (Score:3, Informative)

      IBM is the ultimate patent troll. They make quadzillions every year licensing their patent portfolio. In fact, Microsoft's recent foray into the patent business are based on recreating IBM's success. When it comes to patents IBM is definitely not the good guy.

      • by Wolfier (94144) on Wednesday November 22 2006, @11:11PM (#16961332)
        Good guy or not, it depends on what they do with the patents, not that they hold a lot of patents.

        In suing Amazon, are they trying to sue away a competitor? Don't think so. Are they trying to extort money? Given IBM's size, I doubt it.

        On the flip side of the coin, IBM is pro-OSS at this moment, and I'm glad that IBM has so many patents.
                • Re: (Score:3, Interesting)

                  Here's IBM's side of the story [ibm.com]. Even with IBM writing the story you can see that IBM is basically claiming to own Amazon's business. I didn't read the actual patents (nor am I going to read them), so I can't tell you exactly what the claims are, but I wouldn't be surprised if any ecommerce site would infringe.

                  Now, if you happen to be the sort of person that happens to believe that IBM should own the concept of ecommerce whether or not they have written or sell code that is ecommerce related then I suppo

  • I'm not sure whether to tag this one "haha" or "evil"

  • by Cauchy (61097) on Wednesday November 22 2006, @07:30PM (#16959668)
    Ok, I understand the desire to hate bad patents and bad patent law, and I hate large corporations as much as the next guy---I made enough 'free' phone calls in my youth to prove that. But, seriously, the small guy needs patent law more than the big guy. I work creating ip as I am sure many of you do, and I have extensive experience working for startups including some without VC funding. The fact is that if I, as an individual or a very small business, come up with an idea, a patent may be my only line of protection. I don't have the money to develop it as fast as IBM or Microsoft or Google. I couldn't seek funding for an idea without ip law because the investors might just steal my idea. Patents and ip law are the ONLY protection I have from being completely screwed over.

    When I was younger, I screamed 'information wants to be free' as loud as any of you. However, that was probably the dumbest idea ever to be voiced. Information is the most valuable asset in the world, and it always has been. People die for information all the time. The CIA, NSA, DIA, NRO, and all the other agencies we love to hate are solely about information. Wars are won and lost because of information. Societies succeed or disappear because of information. Information wants to cost you everything.

    We may think the patent system is broken, but we do need a patent system, and we need a patent system that covers algorithms. An algorithm one of us invents is just as valuable as a widget some mechanical engineer invents.
    • The CIA, NSA, DIA, NRO, and all the other agencies we love to hate are solely about information.

      And these organizations exist and work so hard at keeping information unfree. Why? Because information "wants" to be free. This is almost a theorem of thermodynamics. Unshared information is an unstable equilibrium and it takes a lot of work to keep the information state at the top of the hill.

      The internet is like adding a new path to the lowest energy state and information is just "desperate" to flow down

    • Re: (Score:3, Insightful)

      I couldn't seek funding for an idea without ip law because the investors might just steal my idea. Patents and ip law are the ONLY protection I have from being completely screwed over.

      Not so. This can be done with suitable NDAs and/or pre-contracts (eg. negotiating a flat high percentage and no money up front for use of the ideas, with the understanding that this is just a stopgap and renegotiating will occur once people know what's on the table). This is of course impractical now, since investors would

    • by Dr. Evil (3501) on Wednesday November 22 2006, @08:50PM (#16960398)

      Problems with that theory:

      • As soon as you come up with a good idea, you'll be sued into submission by a large company's patent warchest
      • Small companies don't even have the money or time to pursue patent lawsuits, so if a big company did take your idea, you'd be tied up in court until you were broke... or they launched a countersuit (see above)
    • by edbarbar (234498) on Wednesday November 22 2006, @10:27PM (#16961066)
      The patent system wasn't invented to protect the little guy. It was invented to protect society.

      In your note above, you say going it alone might take so long to get there someone else scoops you. In that case, you want to protect that you got there first, or patented the idea first. Patents weren't designed to protect the person that gets there first.

      In terms of getting funding for an idea, in my experience VCs fund teams and markets first, and ideas second. I do have some sympathy with this part of your argument, but not a tremendous amount. If your ideas are really good, they will fund you precisely because you can come up with good ideas.

      CIA, spooks, etc.? Pulease. Patents aren't about protecting information, they are about releasing information but protecting ideas.
    • Re: (Score:3, Informative)

      But, seriously, the small guy needs patent law more than the big guy.

      That's a nice theory, but the reality is that the small guy can't afford patents, and the big guy can. The little guy is much better off keeping the important ideas secret, protecting them with trade secret and contract law (NDAs, etc.). Patent litigation is ruinously expensive, and if you end up fighting with a big guy, odds are very good that he'll dig up a dozen patents of his own that you are infringing.

      Note that I do think pate

    • Re: (Score:3, Informative)

      Years ago, in watching the fight between Microsoft and Apple over the GUI, I made the comment to a friend that Apple should just patent the interface. It seemed like they were attempting to use copyright law when patent law would make more sense. I didn't give it much more thought until the last couple of years.

      I caught a headline on Slashdot the other day saying that Intel had been granted a patent on Web phones. The summary said it had been filed for in 2000. I didn't get the chance to read the article
    • How dare you forbid me to think for myself!

      The problem with your reasoning is that it goes against the most basic grain of how human culture has developed.

      The most fundamental freedom of any person (after covering the basic necesities) is the freedom to think.

      If you come up with a method to solve a problem you should be fully entitled to get some kind of remuneration if your method is useful. But I don't see why if I come with my own method to solve the same problem I should have to pay you anything for it.
  • Why only Amazon? (Score:5, Interesting)

    by Anonymous Coward on Wednesday November 22 2006, @08:03PM (#16960014)
    FTA:

    Amazon is accused of infringing on five IBM patents, including technologies that govern how the site recommends products to customers, serves up advertising and stores data.

    Some of the patents were first filed in the 1980s, including one titled "Ordering Items Using an Electronic Catalog."

    "Given that time frame, these are very fundamental inventions for e-commerce and how to do it on the network," said John Kelly III, IBM's senior vice president for intellectual property. "Much, if not all, of Amazon's business is built on top of this property."


    By this description, it would seem that IBM is entitled to sue just about every online vendor on the web today.

    For maximum patent lawsuit profits, I think they should hit the iTunes store next, then work their way down the list of all domains until the profit from the lawsuits drops to less than $10K per victim.

    The potential for a cash grab is absolutely insane here, they could bankrupt just about every single online vendor on the web, though that might be counterproductive to their hardware sales, however if the lawsuit profits can be invested and grow at a rate greater than hardware sales profits, I guess that wouldn't matter and IBM could abandon hardware sales and simply manage investment funds started with lawsuit profits.

    This is definitely the beginning of the end of online commerce.
    • This is definitely the beginning of the end of online commerce.

      Only if IBM win.

      There is a big difference between initiating legal action against someone and successfully arguing your case in court, perhaps more so in the US business world than anywhere else.

      There is also a world of difference between attempting to use your huge patent portfolio to put pressure on a single target with a limited portfolio of its own, and attempting to use your huge patent portfolio against half the business world (and

  • by pjr.cc (760528) on Wednesday November 22 2006, @09:39PM (#16960730)
    As I sit there coding some piece of rather innocent software blissfully unaware of the world around me, i wonder how many patents im infringing with every line of code....

    This is quite seriously scary stuff in my opinion and just goes to emphasize how we really shouldnt have software patents in the first place. Sadly, im a big fan of big blue and dislike amazon quite alot.

    I wonder how many people, who code just "stumble" on the same idea. If you locked a coder in a black box and told him write a site that sells things online and make it "feature" rich, how many patents would he infringe?

    The broad nature of the patents (or at least how they are described in the article) makes me pray to god IBM dont win this one.
  • What does IBM want? (Score:4, Interesting)

    by Weezul (52464) on Wednesday November 22 2006, @09:40PM (#16960754) Homepage
    Does IBM just want money? Do they want Amazon to buy their stuff? Could they be seeking cross licensing deals for Amazon's shit patents?

    I'd be lovely if IBM descided that its time someone puts the U.S. patent office out of its missery, but I'm sure this isn't the case if they have been trying to negotiate licensing deals with Amazon. But it might still have that effect if Amazon is stupid.
  • good cop bad cop (Score:3, Insightful)

    by rgaginol (950787) on Wednesday November 22 2006, @10:17PM (#16961004)
    I'm lost... which company is the good cop now and which one is bad cop? Oh that's right, companies don't care, they just want more money - I keep forgetting that quintessential fact about a company.
    • IBM Laywers (Score:2, Funny)

      by Anonymous Coward
      ... have nothing better to do after SCO
    • Good news? (Score:5, Interesting)

      by Rosyna (80334) on Wednesday November 22 2006, @10:28PM (#16961078) Homepage
      Why is it lately when I see a story about IBM suing a company, it feels like good news? Almost as if IBM is using its huge Patent portfolio to sue companies that have abused patents in the past (Like Amazon with its One Click). Maybe I've only felt that way since IBM started helping the OSS community more.

      I like the idea of patents, but I loathe the way some companies abuse something that can be used to help the little man break into an industry by creating something truly innovative without having the big boys crush them. But now days, big companies like Microsoft are filing patents left and right and just seeing what sticks. It doesn't matter if they're invalid, MS will still file them and call it innovation.

      What was I talking about again?
      • Re:Good news? (Score:5, Insightful)

        by Tim C (15259) on Thursday November 23 2006, @02:38AM (#16962356)
        What was I talking about again?

        I'm not entirely sure; I think you were talking about how utterly evil and despised IBM used to be, how there's no guarantee that this isn't the first sign of a return to form, and that they are the world's most prolific software patentors, but you seem to have been distracted by an utterly irrelevant swipe at MS.

        Don't get me wrong, I appreciate all that IBM has been doing lately, but understand this - they're not doing it because they're nice guys, they're doing it because it makes them money. If that were to change, so would their tactics. They're nice to us *now*; we cna only hope that they continue being nice.
      • Specially software ones (you know, the patenting of ideas and concepts, that is speech).

        In view of the last few days of sheer madness I find sad an discomforting that there are people out there still supporting what is clearly a rotten system.
      • Re: (Score:3, Interesting)

        Why is it lately when I see a story about IBM suing a company, it feels like good news?

        Because IBM spends years trying to negotiate a deal before resorting to lawyers. They defend their patents.

        Other scum sucking leeches buy up technology, kill the products, and just go around suing for infringement. They use patents to attack and rob legitimate tech producers.

        How can you not cheer to see at least one company using patents the way they were meant to be used?

    • Re: (Score:3, Insightful)

      If anything, this is a perfect example of why Amazon must keep patents. Our patent system is so broke the only way to defend yourself from "evil" companies like SCO is to stock your own ammunition.

      It's like nuclear proliferation, until every company in the world signs a treaty, you have to continue to stockpile patents. Amazon officials have said in numerous interviews, patents are taken whenever they can be granted under the current (broken) system to prevent someone else from patenting an idea and tu

      • Re:OneClick? (Score:5, Insightful)

        by Serveert (102805) on Thursday November 23 2006, @02:06AM (#16962214)
        Getting the 1 click patent was about protection, sure. Except it used it to stop a competitor, a competitor who wasn't threatening any patent lawsuits. I see this lawsuit against Amazon as a way to punish Amazon for their past behavior. I kinda like this lawsuit actually.
    • I find it odd that your wife had to buy a textbook for her college class from Amazon, and was forced to cancel that class when they failed delivery. I don't know, maybe it's a novel expectation that a college bookstore would, you know, sell textbooks for the classes taught at that school. Or y'know, another bookstore.