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Online Auction Industry In A State Of Limbo 329

theodp writes "It seems the online auction industry is in a state of limbo after last week's ruling that eBay violated patents belonging to MercExchange. MercExchange said it will file an injunction against eBay to keep them from using the technology, eBay said it will file motions to overturn the verdict, and MercExchange is ultimately looking to sell its entire portfolio of auction-related patents. Names being bandied about as possible acquirers include Amazon, Yahoo and eBay itself. Whoever holds the patents may require other sites to pay them licensing royalties."
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Online Auction Industry In A State Of Limbo

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  • MercExchange will use Ebay off its patents. BID AWAY. ;)
  • by zoobaby ( 583075 )
    Sell those Ebay stocks...They are about to pay out millions on Billions due to another in wrong patent. It is just like one click shopping from amazon, logical idea but not really patentable IMHO.
  • by Revvy ( 617529 ) on Monday June 02, 2003 @01:38AM (#6093640) Homepage
    ...now available to the highest bidder.
    • by RajivSLK ( 398494 ) on Monday June 02, 2003 @05:41AM (#6094322)
      Why doesn't MercExchange just sell the patents on ebay?

      That's how I get rid of worthless crap I don't want.
    • Intellectual Property for Auctions ...now available to the highest bidder.

      There's a bit of truth to that statement that nobody seems to have noticed yet. Take note of the following statement from the story:

      MercExchange is ultimately looking to sell its entire portfolio of auction-related patents. Names being bandied about as possible acquirers include Amazon, Yahoo and eBay itself.

      Doesn't it seem like MercExchange is using the threat of litigation in order to coerce eBay into purchasing these patent
  • Is this why... (Score:2, Insightful)

    by utd-blaze ( 654032 )
    people hate lawyers?
    • Re:Is this why... (Score:5, Interesting)

      by cmason32 ( 636063 ) on Monday June 02, 2003 @01:56AM (#6093711)
      I'm so tired of this "let's blame the lawyers" crap. Remember that it's the actual parties who file the lawsuits; lawyers are merely advocates for their clients. And, unless it's a bench trial, it's the general public that makes the decisions regarding verdicts and damage awards.

      Whether you think society is too litigious is your opinion. But, to blame that on "lawyers" and not all the assholes who file the frivilous suits is not "insightful" at all.
      • I'm so tired of this "let's blame the lawyers" crap. Remember that it's the actual parties who file the lawsuits; lawyers are merely advocates for their clients.

        Have you ever dealt with a lawyer? No? I have. Plenty. In my experience, the vast majority of lawyers are in fact immoral slimeballs, just as the common wisdom says. Comparing to used car salesmen does a disservice to the salesmen. Basically, the advice you will get from a lawyer is normally designed to maximize the lawyer's billings, with s
        • Re:Is this why... (Score:2, Insightful)

          by cmason32 ( 636063 )
          In fact, I am a law student so I have dealt with many lawyers. I worked for Mayer, Brown last summer and am working for the state Attorney General this summer - so I've done both the private and public sector.

          Are there asshole lawyers? Sure. But there are assholes in every profession - why single lawyers out?

          I want to again stress that lawyers are mere advocates for their clients. Clients are the ones who file the suits and the general public makes the decisions regarding those suits. More than lawye
          • Are there asshole lawyers? Sure. But there are assholes in every profession - why single lawyers out?

            Because nearly all of them are assholes. This is based on experience.

            Clients are the ones who file the suits...

            Yeah, yeah, that is called "rationalization". It's the lawyers who egg the clients on, and it's the lawyers who have iteratively "improved" the system so that nearly every little dispute ends up at least going to discovery. Usually, things only wind down when one of the parties runs out of
          • Re:Is this why... (Score:5, Insightful)

            by Dun Malg ( 230075 ) on Monday June 02, 2003 @10:29AM (#6096106) Homepage
            Are there asshole lawyers? Sure. But there are assholes in every profession - why single lawyers out?

            Because lawyers have actually encouraged the creation of a legal system where advocates must use any dodge or ruse they can cook up under the rationalization that "the other guy's doing it too". Law school seems to encourage this sort of rationalization. I have two cousins and a high school friend who're lawyers and they've basically admitted to this, albeit under the rationalization that "they owe their client the best representation they can provide". One cousin, at least, also admits to the fact that it's rationalizing; but the other, he still proudly tells the following story: as a lawyer in the Army, he defended one soldier who robbed another soldier at gunpoint, which was seen by a third soldier. This third soldier was a key prosecution witness and repeatedly affirmed that yes, the gun was clearly a real gun. So my cousin gets the guy on the stand and, for forty minutes asks him a series of questions, all of which had been asked before, all of which were answered yes. So he's firing off these useless queries, and the guy is getting bored answering "yes...yes...yes...yes..." ad infinitum. So then my cousin slips in the question "is it possible the gun wasn't real?" and the guy says "yes...oh, sorry. I mean 'no'". He then hammered on this totally contrived "witness uncertainity" and got the guy down from "armed robbery" to just "robbery". He tells this story proudly at family gatherings. The fucking scumbag.

            That's the problem with lawyers: they're encouraged to believe that the ends justify the means.

          • Re:Is this why... (Score:3, Insightful)

            by Zeinfeld ( 263942 )
            I want to again stress that lawyers are mere advocates for their clients. Clients are the ones who file the suits and the general public makes the decisions regarding those suits. More than lawyers are involved in the process.

            That is a cop out. I have no respect for lawyers who represent known mob members in civil lawsuits designed to protect their mob businesses. There are plenty of lawsuits that are brought in the US which no self respecting lawyer should ever file. In most countries a lawyer who inten

      • Re:Is this why... (Score:5, Insightful)

        by PurpleFloyd ( 149812 ) <zeno20@attbi.cFORTRANom minus language> on Monday June 02, 2003 @02:38AM (#6093858) Homepage
        Lawyers don't deserve all the blame, but they do deserve a significant portion. Many corporations (especially large ones) will employ a legal team that makes recommendations to the upper management regarding legal matters like lawsuits. Thus, a lawyer may recommend a frivolous lawsuit to the higher-ups in a company, who don't understand the situation and don't care very much. They just sign what their legal team puts in front of them and let the lawyers run free. After all, if the law allows them to file these lawsuits, then it must be okay, right?

        The job of these lawyers is to find and exploit legal loopholes to benefit the corporation they work for. A lot of them are scumballs. That's not to say that all lawyers are bad; that's an attitude I don't understand. There are many lawyers committed to things like bringing criminals to justice or fighting for the poor. They just aren't the ones driving brand-new Porsches. Still, many lawyers are willing to take a pay cut to work in the DA's office, because they simply can't stand the "do-it-for-money" attitude of many big law firms and corporate legal departments. If people were willing to look at the entire legal picture, they would find that it's like many others: a few high-profile assholes, and many people who toil away for good causes in relative obscurity.

        By the way, I'm not a lawyer, but I do know several. I do not associate with assholes. End of story.

        • Re:Is this why... (Score:3, Informative)

          by odin53 ( 207172 )
          You severely mischaracterize inhouse attorneys when it comes to litigation. Inhouse counsel, at least in my experience, rarely gives more than superficial advice about litigation -- 1) 90% of them don't have litigation experience, but rather corporate law experience, and so barely know more about what goes on in a court room than the average "Law and Order" viewer, and 2) if the situation called for more analysis about whether the company should sue, inhouse counsel will invariably turn to outside counsel
      • Re:Is this why... (Score:3, Interesting)

        by utd-blaze ( 654032 )
        Behind every sleazy lawsuit is a sleazy lawyer.

        Consider the number of utterly despicable lawsuits that are filed every day. Every one of those lawsuits represents a lawyer who is willing to take advantage of somebody else for his own and his client's financial gain. That MercExchange are assholes for making lawsuits their business plan goes without saying. That lawyers are assholes for screwing over society for their own financial gain has to be said.
      • Well yes 'blame the judges' and 'blame the legislature' have much to recommend them instead. But all the judges are lawyers, and most of the legislators too...

        People filing frivilous [sic] suits wouldn't be a problem if they didn't win so damn often.

      • by DrSkwid ( 118965 ) on Monday June 02, 2003 @06:32AM (#6094480) Journal
        Client : So, should we sue him, send a letter or what?
        Lawyer : Nah, that's just being too litigious, lets wait a few weeks and see what happens.
        Client: Hmm, okay.

      • Whether you think society is too litigious is your opinion. But, to blame that on "lawyers" and not all the assholes who file the frivilous suits is not "insightful" at all.

        No, I think you are wrong. It is the lawyers. I am not talking about anyone in particular you know, or any one person, but the profession of lawyers. They created the environment where it is OK to file stupid lawsuits. What do they care, as long as they get paid.

        Who do you think makes the laws? Lawyers. You can argue that they a

      • Re:Is this why... (Score:3, Insightful)

        by rifter ( 147452 )

        Whether you think society is too litigious is your opinion. But, to blame that on "lawyers" and not all the assholes who file the frivilous suits is not "insightful" at all.

        Laywers run for congress and write the laws we decry. Lawyers become judges and accept these frivolous suits, then make judgements on them we decry. Lawyers accept people who make these frivolous suits as clients and craft the suits in question. Very often the clients are themselves lawyers or the law arm of SomeCompany.

        If I come

    • No. (Score:3, Insightful)

      by Xtifr ( 1323 )
      This is why people hate the US Patent and Trademark Office.
  • by Anonymous Coward on Monday June 02, 2003 @01:40AM (#6093643)
    to suffer from selfish individuals bent on thwarting innovation of technologies.
  • Ya think? (Score:5, Insightful)

    by rjamestaylor ( 117847 ) <rjamestaylor@gmail.com> on Monday June 02, 2003 @01:41AM (#6093646) Journal
    • Whoever holds the patents may require other sites to pay them licensing royalties.
    Going out on a limb with that one, huh? Yeah, I can't think of many reasons for a company to buy the patent portfolio of a company whose patents on a key Internet technology were just upheld in court. Besides pulling a SCO, that is.

    Can we just refer to this kind of manuover as "pulling a SCO" from now on?

  • by derrith ( 600195 ) on Monday June 02, 2003 @01:42AM (#6093657)
    I've never understood the relevance of such silly patent battles. If they've let ebay and all hte rest of these auction sites get away with patent infringement thus far, why are they finally deciding to "stand up and defend our IP"?
    • because MercExchange was waiting for the right moment, theres no point suing when the companies using the patented ip when they are startups, not much of a payoff there...
    • Possibly the patent was filed a while ago but was just awarded. While the patent is pending, there really isn't much the filer can do but wait until it is accepted before filing lawsuits.

      However, if eBay was already using the technology before the MercExchange filed for the patent, then eBay has every right to continue using the technology and the MercExchange patent will be overturned.

      Assuming the patent was just awarded (which is why they are just filing suit now), it usually takes about 2-3 years for
  • by drayzel ( 626716 ) on Monday June 02, 2003 @01:43AM (#6093662)
    Ebay should just take the easy road and remove online auctions from their business model.

    They could turn themselves into a a portal, or maybe maybe a search engine. Maybe they could sell groceries and have them delivered. I wonder if the CEO has heard of push technology? Push will be the wave of the future! Why surf around for content when it can be delivered via a cute little cartoon caharacter.

    I doubt this whole 'auction' thing will ever catch on anyway. None is ever going to buy a piece of junk from an unknown person over this here new fangled internet.

    ~Z
  • This is ridiculous (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Monday June 02, 2003 @01:43AM (#6093663)
    How the heck do you patent doing something that's been done for generations just because it's on the internet. It'd be like patenting giving stock quotes over the phone. It really ticks me off to see all these companies with nothing real to offer humanity getting patents for using other peoples technology. If I were ebay, I'd try and kill this patent based on the shear obviousness of it.

    Still, I can't help but wonder if the reason America is so patent crazy lately is to get a leg up on the rest of the world. I'm pretty sure large parts of Europe will be tricked/cajoled/forced into honoring this crap eventually, and I know Iraq will (whether they want to or not).
    • by Troed ( 102527 ) on Monday June 02, 2003 @01:54AM (#6093696) Homepage Journal
      The European Parliament will vote on patents in EU in just a few weeks - having a case like this go public _before_ that happens will only help us from having equally relaxed restrictions on software patentability as seen in the US.

      Will most surely have patents on software soon, yes, but that will probably exclude "business methods". Algorithms will be patentable, "one click shopping" and "buy it now" will not.
    • by McLaLa ( 15790 )

      It'd be like patenting giving stock quotes over the phone.

      Looks like someone already did [uspto.gov] !

      What is the world coming too ??
  • ...we know you are in there somewhere SCO!
  • How can you patent such a concept as "buy it now?" Frankly, I love it and use it all them time -- it lets me land an eBay item before someone else does, albeit for a bit more. But hey, we'll see what happens in court. I'm behind eBay all the way on this one.

    P.S. I'm off to patent the use of cars on roadways, so y'all'll have to stop driving when I win! Muhahaha!
  • How silly (Score:5, Insightful)

    by metalhed77 ( 250273 ) <andrewvcNO@SPAMgmail.com> on Monday June 02, 2003 @01:49AM (#6093683) Homepage
    What truly is non-obvious? The fact that this can be patented is truly ridiculous. I can't see how this is a case of patents protecting the economic goals of this country. In this case the patent produces the exact opposite of its original goal, it removes competition in the sector. Yet another reason to search for alternatives to our current IP system.
  • How can having a fixed price on something that also has a variable price be patentable? Even worse, how can it be held up in court?
    • Even worse, how can it be held up in court?

      The judge's opinion was up for auction, and MercExchange used Buy It Now.

    • Re:I don't get it (Score:3, Insightful)

      by zwoelfk ( 586211 )
      Arg, this is really frustrating! People use this [sarcasm]non-obvious[/sarcasm] concept all the time. In countless magazines, newspapers, etc. How silly would it be for Auto Trader to patent the concept of OBO (which is what we're talking about here) for paper media? And how much more absurd is it that now, any person who uses "$XXX OBO (Or Best Offer)" /online/ to sell their goods (let's say in a forum, where they are responsible for their choice) is liable for patent infringement.
      This is cleary the same t
  • Hmmm. (Score:2, Funny)

    Names being bandied about as possible acquirers include Amazon, Yahoo and eBay itself. Whoever holds the patents may require other sites to pay them licensing royalties.

    You think they'll have the guts to hold an online auction for the royalties?
  • by fireman sam ( 662213 ) on Monday June 02, 2003 @01:53AM (#6093693) Homepage Journal
    Take an existing event, which by itself in not patentable (ie an auction) and stick it on a have the participants interact through the internet, and all of a suddent, you have just "invented" the best thing since sliced bread (Patent Pending).

    So:

    1. Take existing "thing" everyone does
    2. Stick it on the net, and patent it
    3. Profit

    Take that underpants gnomes!
  • You mean Amazon doesn't own this already?
  • I don't know much about Patent law, but I always heard that patents were easy to engineer around because they have to be so specific, and a relatively minor change can be used to engineer around the patent.

    How does this extend to computer programming techniques? Why don't you have to provide a specific algorithm in the patent that can be engineered around?
    • Oh, and I also worry about stuff like this being enforced in the US. (I'm a US'ian) If we are more strict with our IP laws than other countries, then our companies' ability to compete on the international market could be hampered.
    • I've glanced over some software patents. The ones that I looked at weren't very specific. They basically said, "This patent is for this, a non-obvious way for doing X."

      This particular patent sounds even more vague, along the lines of, "This patent is for selling things over the internet," probably with little or no mention of how the system would actually work. Basically, I think that for anything technology-related the USPTO is like, "Oh, wait... technical, computer nerd stuff... ok, yeah, here you go."
  • How about patenting the concept of porting a way of auctioning things over the internet from IPV4 to IPV6?
    • Re:IPV6 (Score:3, Insightful)

      How about patenting the concept of porting a way of auctioning things over the internet from IPV4 to IPV6?

      Or bidding via a cell phone instead of a computer.
  • by CptChipJew ( 301983 ) <michaelmillerNO@SPAMgmail.com> on Monday June 02, 2003 @01:54AM (#6093704) Journal
    MercExchange, which said it will file an injunction against eBay to keep them from using the fixed price technology MercExchange had patented in 1995.

    Does this mean MercExchange patented By It Now?

    If I'm reading this properly, then it just seems that Merc wants to:

    1. Obtain all legal rights to online auctioning methods
    2. Sell to large Fortune 500 company
    3. Profit.

    Which makes sense to me. It may be a slimy tactic, but that's business.
  • by iamdrscience ( 541136 ) on Monday June 02, 2003 @01:56AM (#6093710) Homepage
    You aren't allowed to patent a business process (i.e. "the assembly line") and I don't understand why this should be any different when the internet, computers or software are concerned. Some software patents like compression algorithms and such are somewhat arguable but patents like "online auctioning" are just stupid...
  • by stephanruby ( 542433 ) on Monday June 02, 2003 @01:57AM (#6093714)
    ...that's what you get for ignoring your jury duty summons.
  • by tankdilla ( 652987 ) on Monday June 02, 2003 @02:07AM (#6093750) Homepage Journal
    My plan for retirement:
    1. Come up with a plan or method that sounds crazy, impractical, or stupid to everyone, and copyright it.
    2. Wait 5 or 10 years for someone else to find a way to make millions off it.
    3. Sue for copyright infringement.
    4. etc...
    • A patent and a copyright aren't the same thing.

      Basically, a patent is for something that you invented, such as a better mousetrap, or a new compression algorithm.

      A copyright is for something that you created, like a painting or a screenplay.

      If you have trouble, an easy way to remember it is that you get a copyright if you write a new book, and a patent if you invent a new book printing process.
    • I'll do you one better and actually patent it. You already have copyright ownership of almost anything you create, some restrictions aply.
  • This might be an important case, if ebay decides to try and challenge the legitimacy of the patents. If they win, it could set a good precident. If they lose, it'll be a disaster. I hope thats what ebay does, allowing MercExchange to make money off these absurd patents will only encourage others. Oops, it appears that I have a patent for electronicly displaying letters and numbers...
  • So big deal (Score:5, Interesting)

    by fm6 ( 162816 ) on Monday June 02, 2003 @02:13AM (#6093770) Homepage Journal
    This would be interesting if EBay had any real competition. But attempts to set up competing auction sites have consistently failed (buyers go to EBay because the sellers are, sellers go to Ebay because that's where the buyers are), so the only real question is who gets to share in EBay's profits.

    If these patents continue to hold up, then either EBay will buy them for some stupendous price, or somebody else will buy them and charge EBay studpendous fees. Either way, EBay will continue to do business much as before -- the profits will just get divided slightly different. Big deal!

    • yes, big deal. (Score:4, Interesting)

      by Erris ( 531066 ) on Monday June 02, 2003 @02:29AM (#6093828) Homepage Journal
      This would be interesting if EBay had any real competition. But attempts to set up competing auction sites have consistently failed

      Now they have one more reason to fail, but it has nothing to do with market forces, freedom or the American Way. You telling me I can't do something obvious because you did it first is bogus. I might like to run a trading site for the fun of it, that's they way ebay started. If it makes lots of money, like ebay did, goodie for me. If not, no big deal. Me paying you money for nothing is not something I care to do. Screw off.

      • What's Obvious? (Score:3, Insightful)

        by fm6 ( 162816 )
        Old mathematics joke: Prof is writing a complicated proof on the chalkboard. Turns to the students and say, "Now, it's obvious..." He pauses. "At least I think it's obvious..." He scribbles frantically for about 15 minutes and finally turns back them and say, "I was right! I was right! It is obvious!"

        Maybe that was offtopic, since mathematicians have a strange notion of "obvious". Thing is, you can't just say something is "obvious" because it's something we take for granted now. Nowadays, anybody who's st

    • Re:So big deal (Score:3, Interesting)

      by Zarquon ( 1778 )
      There are some..

      surplusauction.com (government surplus)..
      the old egghead auction place
      yahoo has a moderately useful auction service.

      The big problem being finding places where the used items aren't going for more than a new _retail_ item (stupid people)..
      • The big problem being finding places where the used items aren't going for more than a new _retail_ item (stupid people)..

        I guess that's the main reason I don't care too much about the patentability of online auctions...

        Then again... EBay prices are inflated because of all those compulsive bidders. Which EBay encourages with "auction notifications" and other stuff that's really redundant in the proxy auctions they conduct. In other words, it's very much like gambling -- people throw away absurd amounts

        • Then again... EBay prices are inflated because of all those compulsive bidders.

          You have to admit thought, this is part of the fun.

          A year or so ago I got on ebay for the first time (don't really care for this stuff myself) just to see what the fuss was all about. Registered, did my thing, then watched for a bit.

          After seeing people bid like crazy over the silliest shit, I started bidding myself on a few items just to see what would happen. I didn't actually want the items, I just wanted to see how much
          • I dunno. Game manuals are collectable. Collectibles have a value that has nothing to do with their utility.

            I don't think you really played any role in bidding up these prices. Last minute bids are pretty much the norm on EBay. People seem to think that it gives them an edge. Nobody seems to understand the difference between submitting a bid in a live auction (which is how traditional auctions work) and specifying a maximum bid in a proxy auction (which is how EBay auctions work). If nobody knows what your

            • Yes, you'd be 100% correct, if we lived in a world where everyone played the bidding game by a purely logical strategy, and knew everyone else would as well.

              But people don't. Last minute bids take on an importance that they shouldn't have, because not everyone on ebay bids their maximum amount right away.

              If I place a 50 dollar bid on an item that someone else has previously placed a bid on, for 34 dollars, the new price will be 35 dollars, with me as the winner. In theory, if 34 dollars was in fact the th
  • eBay was founded in September 1995. Patent was filed in November 1995. Was eBay doing something other than auctions?
    • The patent specifically covers having a fixed price on an auction (ie, the Buy It Now feature). eBay didn't have this until some time after it opened.
    • by silentbozo ( 542534 ) on Monday June 02, 2003 @03:07AM (#6093939) Journal
      eBay was founded by Pierre Omidyar (who was a programmer working at General Magic at the time) as an online community (hence, e-Bay, for the Bay area up in San Francisco.) For quite a while, eBay was pretty much a personal website/community bulletin board for him, not a business (in fact, some cool code he hacked together for MagicCap devices lived at the eBay domain for a while - if anyone remembers the e-mail gateway for retrieving web pages.) I think auctions were just a feature of the site that just happened to grow into a big business.

      Based on when most of eBay's current corporate officers joined (97-98), it is quite likely that eBay as we currently know it did not exist until probably 1996. Certainly, the Buy-it-now feature that eBay uses, which was ruled as violating at least one of the 3 patents that MercExchange is supposed to own, probably didn't get implemented until at least a year or two after that.

      My question is whether these ideas (as detailed in Guaranteed Electronic Markets [amazon.com] - 1999) appeared in print prior to the 1995 application date for the patents in question, given the existence of technologies like AOL, AT&T, and BBSes at the time. To be valid, none of the ideas embodied in the patents filed must have been published. I find that hard to believe - that the concept of haggling over a product with the option of a set price, as extended to a network (for example, over the phone network) did not exist in print prior to 1995. As for software agents, that seems like an obvious extension of existing software agent work prior to 1995. I mean, if you look at the patents in question [com.com], they cite lots of prior art which makes it clear (at least in my mind) that what they were trying to patent was neither novel nor non-obvious to someone skilled in the field in question.

      Seriously, there wasn't any literature - even fiction, that featured the idea of auctions over a networked computer system,with software agents?
  • by Anonymous Coward
    Quotith:

    US District Court Judge Jerome Friedman had rejected eBay's attempts to throw out the claims made in the disputed patents, but limited the trial to patents involving fixed-price selling and having an integrated payment processor.

    This has nothing to do with auctions on the internet or the end of all auctions. It has to do with specific combination of FIXED PRICE SELLING and an INTEGRATED PAYMENT PROCESSOR.
    So, IMHO, ebay just needs to remove the fixed price items and it's business as usuall.

  • by questamor ( 653018 ) on Monday June 02, 2003 @02:34AM (#6093848)
    Whoever holds the patents may require other sites to pay them licensing royalties

    Or they could be sane and let the world continue as it has been, succesfully.
  • by evilviper ( 135110 ) on Monday June 02, 2003 @02:35AM (#6093851) Journal
    Did anyone here read the stinkin' story??? 9 post at +3 or better so far, and all obviously only read the summary...

    Pay close attention to this (block)quote:
    a jury ruled that eBay had violated patents belonging to MercExchange, which said it will file an injunction against eBay to keep them from using the
    fixed price technology MercExchange had patented in 1995.


    That's right... According to the story, the only thing eBay can't do, is the "Buy it now" thing. Auctions go on as usual.

    The second article says the same thing, approximately:
    US District Court Judge Jerome Friedman had rejected eBay's attempts to throw out the claims made in the disputed patents, but limited the trial to patents involving fixed-price selling and having an integrated payment processor.

    Last time I used eBay, there was no "integrated payment processor", and "fixed-price selling" was a new feature... In other words, they were doing well before those features, so I imagine they could do without them if things don't go their way.

    I hate patents, but I hate sensationalist /. stories as well.
    • by zakezuke ( 229119 ) on Monday June 02, 2003 @02:55AM (#6093904)
      Rather then use "buy it now" technology, perhaps e-bay would move tward "end it now" technology, where users who are trully interested in an item can select to buy it, rather then the seller selling it. This way it should resolve the trivial issues of the IP of "buy it now".

      Now if that sounds fucking stupid, it's no more stupid then someone claiming they hold the IP to "buy it now".

      Near as I'm aware... OBO [or best offer] technology has been in use for as long as I can remember, employed by a vast amount of private citizens when selling things via news paper classifieds.

      For those "unfamilar" with OBO technology... basicly a person is selling goods or services and lists an ideal price under the terms that you can buy it for that price, otherwise the selling will accept the highest offer they recieve. What we forget is offers can be higher or lower then the asking price.

      For example, I was selling a 486 overdrive some years back. I put it up for sale for like $50 OBO, and I got offers higher then what I posted it for. Basicly I explained to all involved that my best offer was like $75 but a higher offer would be accepted and sold. Needless to say this pissed people off, dispite the fact I was trying to conduct the transation in a fair and honest fasion, and taking the "best" offer.

      I would have taken $50 for it, but someone was willing to pay me more money in order to assure that they got it, as well as some assurance that it worked.

      Now... I am not the inventor of OBO technology, in fact i'm not sure who is, I would *THINK* it's in the public domain, the fact that it's in common use.
      • Rather then use "buy it now" technology, perhaps e-bay would move tward "end it now" technology

        Your OBO idea is really almost identical to eBay's primary purchase system. Everyone makes a bid, and the highest ($75) at the end of the time-frame wins. Sellers can also set a minimum price ($50) und which they will not sell.

        I am not the inventor of OBO technology, in fact i'm not sure who is, I would *THINK* it's in the public domain, the fact that it's in common use.

        It's surreal hearing that. It's amazi

  • by Tokerat ( 150341 ) on Monday June 02, 2003 @02:38AM (#6093859) Journal

    ...and sue the shit out of AOL, MSN, Yahoo, any and all operators of IRC servers, VoIP systems, and the like.

    The sad things is; if tommorow I saw a headline that someone did just that, I wouldn't be suprised in the least.
  • by Dr. Photo ( 640363 ) on Monday June 02, 2003 @02:57AM (#6093910) Journal
    Ebay should retaliate by patenting "Online Auctions using a computer and software"...

    Then whoever buys the other patents will be forced to cross-license!

    Isn't it wonderful to see such innovation and progress being so thoughtfully encouraged by our beloved government? (May they never be overthrown!)

    Makes me feel all warm and tingly inside.
    • Don't forget "Over the internet"

      The patent clerks might not all understand "online"
      • Don't forget "Over the internet"

        The patent clerks might not all understand "online"


        What is claimed:

        (1) A method of conducting an auction (2) over the Internet (3) involving the use of (4) a computer and (5) software.

        Said software being comprised of (6) bits and/or (7) bytes.


        Given the number of real patents granted that look just like this, I'm beginning to think that "patent clerk" should be an elected position. :-)
  • by IvyMike ( 178408 ) on Monday June 02, 2003 @03:25AM (#6093988)

    I was going to ask if the legal use of the word "obvious" is different than the common-sense one, but google quickly answered my question [iusmentis.com].

    I won't try to summarize the document, as I'm sure I'd butcher the meaning, but short answer: Yes, patent law use of the word "obvious" is somewhat contrary to common sense. In retrospect, I guess this should have been obvious to me. *rimshot*

    It is frightening to think that something that any group of 5th graders might come up with in a brainstorming session could qualify as non-obvious, but it sounds like this could be the case.

  • The patent document uses the word said so many times to make even the mother of all trolls blush. It's so muddled that I suspect the lamest of all lameness filters on /. could catch it.

    When will we start rejecting technical documents that would keep even the best lawyers up into the wee hours?

    Why not hire communication capable technical writers as patent examiners instead of the morons that fill those spots?
  • Has anyone patented a business method along the lines of: 'Exploit lax patent examinations by taking take out lots of patents, then using those patents to extract money from others'?

    I imagine it would be quite lucrative to license this business method to companies such as MercExchange.

  • Karma (Score:4, Troll)

    by Lonath ( 249354 ) on Monday June 02, 2003 @06:14AM (#6094420)
    Remember when Ebay got those retarded patents on showing thumbnails of items for auction? I think their whole schtick was that they had items from more than one database being presented in a single webpage or something. :P Well, this is karma.

    I don't want to see anyone win here. I want to see the award reduced massively, and I want to see the person who filed the lawsuit vilified by everyone. I want the injunction to be granted and I want them to fight it out as long as possible while their online auctions taken down. I don't wany Ebay to sell out to another company. I want Ebay to enforce its online auction patents against everyone else doing online auctions and I want all online auction sites taken down.

    I want this to be a big fucking huge giant mess that pisses every Internet user in the entire country off and has them asking: Why can't I sell my <worthless crap> anymore? How dare the government tell me I can't do this? You mean a bunch of *lawyers* can just take away the Internet?

    It's wishful thinking, but I hope that Ebay goes all the way with this and tries to drag everyone down with them.
  • Here is the patent (Score:3, Informative)

    by angle_slam ( 623817 ) on Monday June 02, 2003 @08:09AM (#6095030)
    U.S. Patent 5,845,265 [uspto.gov] titled Consignment Nodes.

    Looking at the verdict [findlaw.com], independent claims 8, 15, and 26 were found infringed. Here are those claims:

    8. A market apparatus for use with a posting terminal apparatus, said posting terminal apparatus having means for creating a digital image of a good for sale, means for creating a data record of said good for sale, a tracking number printer means, a tracking number scanner means and means for communicating to said market apparatus, said market apparatus comprising:

    a communications means for communicating with the posting terminal apparatus;

    a post/de-post communications handler operably connected to said communications means, said communications handler receiving a data record of a good for sale from the posting terminal apparatus, said communication handler detecting a predetermined posting terminal apparatus identification code from the posting terminal apparatus and verifying from said code that the posting terminal apparatus is an authorized user of said market apparatus;

    a storage device operably connected to said post/de-post handler, said storage device adapted to receive and store said data record of a good for sale, said data record containing an image of said good for sale and a textual description of said good for sale;

    a presentation mapping module operably connected to said storage device and a wide area communication network, said presentation mapping module providing via said wide area communication network an interface to said market apparatus for a participant, said presentation mapping module providing said participant with access to said data record textual description and said image of said good for sale;

    a transaction processor operably connected to said wide area communication network and said storage device, said transaction processor adapted to receive a purchase request and payment means from said participant, clear said purchase request and payment means and if said payment means clears then transfer the ownership of said good for sale by modifying said data record of said good for sale to reflect the new ownership of said good for sale by said participant; and

    a notification means operably connected to said transaction processor said notification means notifying the posting terminal apparatus in response to said transaction processor transferring ownership of said good for sale denoting with a finality of transaction said new ownership of said good.

    15. A market apparatus for use with a posting terminal apparatus, said posting terminal apparatus having a digital camera for creating a digital image of a good for sale, a record maker module for creating a data record of said good for sale, a tracking code printer, a tracking code scanner and a posting terminal communication interface for communicating with said market apparatus, said market apparatus comprising:

    a communication interface for communicating with the posting terminal apparatus;

    a post/de-post communications handler operably connected to communication interface, said communications handler receiving a data record of a good for sale from the posting terminal apparatus, said communication handler detecting a predetermined posting terminal apparatus identification code from the posting terminal apparatus and verifying from said identification code that the posting terminal apparatus is an authorized user of said market apparatus;

    a storage device operably connected to said post/de-post handler, said storage device adapted to receive and store said data record of a good for sale, said data record containing an image of said good for sale and a textual description of said good for sale;

    a presentati

  • Is this Prior Art? (Score:3, Interesting)

    by shreak ( 248275 ) on Monday June 02, 2003 @10:22AM (#6096053)
    The technology in question is "Fixed Price" auctions. Auctions that have "Buy it now" on them. Back in the day (pre-1994) I used to do comic auctions on the usnet and we used that trick all the time. It was known as the "Buyout". Here's a link to an auction back then that had a buyout (not mine, just the first one I found). There's plenty more:

    Buyout Auction [google.com]

    =Shreak
  • The answer.. (Score:3, Interesting)

    by Ogerman ( 136333 ) on Monday June 02, 2003 @11:03AM (#6096384)
    The only way this kind of patent-abuse nonsense is ever going to stop in the short term is if enough people get PO'ed enough to put forth strong political pressure for reform. Software and business practice patents are a serious threat to innovation and the economy in general. We need the nation's tech entrepreneurs to rise up in opposition and let their voices be heard.

Understanding is always the understanding of a smaller problem in relation to a bigger problem. -- P.D. Ouspensky

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