Amazon Slaps Orbitz and Avis With Patent Lawsuit 140
theodp writes "Amazon has sued Cendant for allegedly infringing four patents covering electronic commerce at its Orbitz, Avis and other Web sites. Cendant, the biggest U.S. provider of travel and real-estate services, knew 'or should have known' it infringed when using the tools to secure credit-card transactions, handle customer referrals and manage data, according to the lawsuit filed June 22 in federal court in Seattle. Amazon itself was sued by Cendant last year for patent infringement over its recommendation technology. So much for five years of Amazon patent reform."
This isn't exactly news... (Score:2, Funny)
So, how is it news that they're doing exactly that?
Re:This isn't exactly news... (Score:3, Insightful)
Defensive lawsuit (Score:5, Insightful)
However, it appears that Cendent withdrew its lawsuit in February [nwsource.com], so I'm not sure what to make of it. I suppose that if someone draws a gun on you, and then says, "heh heh...just kidding", you wouldn't necessarily be inclined to stop reaching for your own gun. So I can't say that I can muster a lot of pity for Cendant.
Cendant essentially forced Amazon to look in their patent portfolio to find what they could nail Cendant to the wall with. After having done all of the expensive homework, it seems that Amazon needed to at least recoup those costs.
Rob
Re:Defensive lawsuit (Score:5, Interesting)
As far as I am concerned, Cendant drew its sword and now they cannot avoid battle. Tough shit for them.
Re:Defensive lawsuit (Score:5, Funny)
The online commerce patent situation is long overdue for a shakeout. We have to get rid of all these ridiculous patents before it completely blocks startups from free access to the online marketplace. Without invalidating some of these patents, everyone is at risk of being sued simply for trying to conduct their business online, and that will kill internet commerce except for a few giants who can afford the patent royalties and litigation costs.
Sad, when the internet's original promise was to empower the little guy and gal and level the playing field.
Re:Defensive lawsuit (Score:2, Funny)
They were Blizzard's parent company during the StarCraft days. Does that get them any browny points?
Re:Defensive lawsuit (Score:2)
Re:Defensive lawsuit (Score:2)
Unless they settle out of court.
Re:Defensive lawsuit (Score:2)
Wow, that is the exact supposed goal of patents as well!
but combining the two
both get sketchy (Score:2)
And, if the noises lately about regulating the internet start
Re:Defensive lawsuit (Score:2)
Re:Defensive lawsuit (Score:2)
That said, however, it would be interesting to know what went on behind the scenes between Amazon and Cendant. Was there any attempt made on Amazon's part to reso
Re:Defensive lawsuit (Score:2)
My first thought was that this seems like a classic case of defensive patent action, and is fair game in my book.
No, that would have been if Amazon asked the courts to rule on the case that Cendant dropped. Much like IBM is now asking the courts to entertain SCO's original copyright infringement claims that SCO has since dropped.
Amazon is bringing a new suit, based on their own obvious bullshit patents. While it may be tit-for-tat, it's hardly justified.
Re:Defensive lawsuit (Score:2)
Amazon may actually be in violation of Cendant's patents. If you think that Cendant's patents are obvious bullshit, then do you think that Amazon should cheerily take it on the chin, or do you think they should fight back?
This is quite possibly very different than the SCO case. It would appear that SCO has little legal ground to stand on, let alone moral ground. So, IBM might very well be effect
Re:Defensive lawsuit (Score:2)
IBM is making counterclaims AND asking the courts to rule on the original infringement claims. Amazon isn't doing the latter. I mentioned IBM because of them doing the first, to illustrate that you can ask the courts to judge on claims that have already been dropped. Perhaps I could've picked a better example, seeing as IBM are also claiming other patents; the example I was going to post was that mag
Settled out of court (Score:1)
Both companies would not want to risk a costly patent war that will drag in the supreme court which will ultimately result in the supreme court hitting both these frat boys on head with a patent-busting hammer.
In such a situation, both companies will lose their patents which they won't want to lose. "You scratch my back, i will scratch yours"...
Case closed. Go back to your work.
Thats it! (Score:1)
Re:Thats it! (Score:3, Insightful)
Re:Thats it! (Score:2)
To be fair, I think he's got something of a point: http://store.apple.com/ [apple.com]
Obviously this is not their main business, but they have licensed the use of such trivial nonsense as 1 Click Shopping to third parties (Apple, certainly).
I should think they have made a tidy sum doing so too - more than the entire turnover or networth of a smal time online retailer, and many times more than they could hope to afford.
Re:Thats it! (Score:2)
Re:Thats it! (Score:2)
Re:Thats it! (Score:1)
Re:Thats it! (Score:1)
Re:IP Brokers? (Score:2)
Don't you mean IP whores?
It's not just Amazon. (Score:5, Insightful)
I work at a corporate computer science research wing of an extremely large company (which I won't name, but isn't much different from my previous employer, and is probably not much different from any other large company in the same position). At the moment, the work I'm doing is not research, but software development. Our group has a requirement to turn out N invention disclosures a year, even though we aren't doing research. Naturally, this results in plenty of grumbling and people just grabbing something handy to "disclose" as an invention. There are people Googling for random things online, and submitting them as "inventions" to get upstream management off their back. Thus, the poison seed enters the system as a result of a poor goal/reward structure around research.
To keep *their* bosses happy, research management has to convert some number of these into patents.
The USPTO, which does not have the incredible amount of funding that it would require to block all stupid patents (you would literally have to hire the best researchers in every field and give them a long time to mull over each patent), might send these patents back a time or two, but sooner or later they will get through.
This is where stupid patents come from. Sometime down the road, lawyers will use these as clubs.
I am not on the financial side, but as far as I can tell, existing players in a market generally just cross-license. AMD and Intel will never duke it out over patents, because neither one would be able to produce chips.
What happens is that nobody new is able to enter the market, by virtue of a steady stream of patents existing covering all kinds of basic-but-crucial ideas. The idea, from the standpoint of existing players, seems to be to convert a free market into an ogliopoly, in which there is much more profit to be made from consumers, and in which the continuous push to commoditize products can be stopped. And every now and then, existing players merge or go bankrupt, and the market gets ever richer for the existing ones.
The problem (well, the problem that pisses off a lot of open source programmers) comes in in that open source projects generally don't have any money (certainly not enough to take on a large company in patent litigation). So, instead of being able to do what other large companies do (cross-license, just dump a bunch of money on the other company, whatever is necessary to continue doing their work), open source projects simply cannot do things for fear of being sued (or just having all their hard work thrown out). So we have stupid things like lower quality font rendering (because the FreeType people cannot legally support the TrueType hinting data) and so forth.
I have fond memories of one meeting at my previous employer where a bunch of researchers and an extremely key (i.e. essentially nonfireable) software developer was. The meeting was to encourage the project to produce more IP, and was being conducted by one of our in-house corporate lawyers. Halfway through the meeting, the software developer (who felt that the whole thing was a waste of his time in the first place, and clearly disliked software patents) stood up and started railing on software patents. The research folks just stood there. Talking privately after the meeting, I discovered most of the researchers agreed with the guy, but saw any complaints as politically incorrect and simply likely to get them fired or research funding (always a popular target for funding cuts) cut.
The very root issue is twofold: (a) that it's not easy for people to make money on research (in the US, I've been told by people who are more interested in the business side of research that many corporate research labs have gone away or been closed down), and (b) that it is *exceedingly* difficult to effectively judge how well someone is doing research. Everyone will try to present their research as the next gro
Re:It's not just Amazon. (Score:1)
I can't give the USPTO (or is it the process itself?) the free pass, however. Simply too much prior art, at least in the software field, gets by them. Had they been behaving this way in the early 1900s, Ford Motor Company would have gotten a patent for "A Method Of Forming Molten Metal", or some equally silly thing.
I can't give Amazon and/or Bezos a free
Re:It's not just Amazon. (Score:3, Informative)
Google "Selden patent." Something even more ridiculous was patented.
Re:It's not just Amazon. (Score:2)
Ah yes, that infamous patent. Remember, next time someone says [some overly-general patent] is a good thing, that an overly-general patent nearly blocked the widespread adoption of the motorcar - and would've done for several years if Henry Ford hadn't risked violating it.
Re:It's not just Amazon. (Score:2)
This is a shortsighted impulse beloved of small-minded PHBs (and entire companies), who'd rather add up a column of figures than think about their subordinates and make a judgement call which more accurately reflects their value to a company.
The problems with such arbitrary metrics are obvious - a salesperson may make one s
Amazon smacking back (Score:4, Insightful)
A Reason this is Especially Ironic (Score:2)
Friends with the enemy?
Of course, it's more likely that patent law is the rightful enemy.
Which patent did they violate? (Score:3, Funny)
Playing by non-existant rules (Score:3, Insightful)
Capitalism is amoral which is why our laws can't be.
Re:Playing by non-existant rules (Score:2)
Re:Playing by non-existant rules (Score:2, Insightful)
Morals are self imposed laws drawn from culture, religion, upbringing and life experience. They vary so widely across socio groups and even generations, it would be damn near impossible to write moral law which would be acceptable to all, or even the majority. For example several christian churches define homosexuality as an immoral act. Many others would see the criminalization or persecution of homosexuals as immoral. No law can enforce both moral points of view and law should nev
Re:Playing by non-existant rules (Score:1)
Patent laws are like meta-laws; laws about imaginary obejcts called patents. Since they're not part of the realm of the real world, morality has no claim on them so law must. QED.
Flexible morality (Score:2)
Just remember that there is a substantial group of people that think stoning is a moral punishment. Or that if you do not believe as they do, you must pay a tax.
A flexible morality stops being so nice when you have to tolerate that much "diversity".
winners (Score:4, Insightful)
Re:winners (Score:1)
Not to be confused with Med-Mal style law, which is better for lawyers. (Who, possibly like their victims, make outrageously large amounts of money from questionably quantifiable damages.)
I'm not saying I'm in favor of this sort of patent adventuring, but saying knee-jerk insightful things
Re:winners (Score:1, Insightful)
In stupid patent-everything-and-sue-everyone corporate world, only the lawyers benefit in the long run. As long as you can patent the obvious, everyone will have patents, and so everyone and anyone who can affort lawyers will be able to sue others for stupid reasons. In the long run, this will hurt businesses, consumers, techno
Re:winners (Score:3, Insightful)
Yeah, the "competitive advantage" of not allowing their competitors to be competitive! This hurts consumers and hurts all companies in the long run. Only the hired mercenaries truly benefit.
Considering Software Patents are... (Score:2)
software by its very nature, is NOT patentable. [ffii.org]
Re:Considering Software Patents are... (Score:2)
So "nature" likes threes, and created three primary user interfaces...
Right. I mean, with such pseudo-scientific "logic" as this on our side, how can we loose?
Re:Considering Software Patents are... (Score:3, Informative)
Shouldn't that be cyan, yellow, and magenta?
cyan != blue and red != magenta.
Re:Considering Software Patents are... (Score:2)
Re:Considering Software Patents are... (Score:2)
Re:Considering Software Patents are... (Score:4, Interesting)
I don't see the argument. I see a bunch of fancy words and broad generalizations that magically conclude that software is not patentable.
The key lies with this sentence: "Currently patent granting organizations have no solid reference point of "abstraction physics" from which to test software patent applications against, or re-evaluate granted software patents."
You need to show that this is the directive of the patent office by further explaining the concept, providing references to the patent office documentation, and showing examples of how non-software patents meet the criteria.
Right now, you're just oversimplifying the issue and playing logic games. You need to show a clear argument instead of trying the "I'm correct because I write better than you read" approach.
Re:Considering Software Patents are... (Score:2)
Made of what?
could be worse (Score:2, Funny)
get Book Burro (Greasemonkey script) (Score:5, Informative)
Get yourself a copy of Book Burro [overstimulate.com]; it will automatically annotate any Amazon page you go to with a list of other bookstores you can buy the book at, as well as the prices (often lower than Amazon).
Re:get Book Burro (Greasemonkey script) (Score:1)
Re:get Book Burro (Greasemonkey script) (Score:1)
Re:get Book Burro (Greasemonkey script) (Score:2)
That's how almost all on-line bookstores work.
In any case, if you value your time and want good service, there is an even better choice: give (E-mail, FAX, whatever) your list of books to an independent bookseller near you--they'll do all the searching and ordering for you.
Could be an interesting case (Score:4, Interesting)
The (very short) article doesn't say what exactly Cedant is allegedly infringing, but "secure credit card transactions", "customer referrals", and especially "data management" seem trivial techniques which should never have been patented in the first place. If this goes to court, the judge might think so too. It could be the start of patent reforms.
Re:Could be an interesting case (Score:2)
And it could be very unlikely that none of these patents, or their challenges, will lead to patent reform, espcially if it relies upon the actions of a judge.
Next we know, (Score:2, Insightful)
Actually, I'm sure I've already heard of a company doing that. *cough*SCO*cough*.
Re:Next we know, (Score:2)
Re:Next we know, (Score:3, Informative)
Edison used existing patents to avoid dead end research.
He pre-announced the vaporware lightbulb before he had even got anywhere near completing his research.
He also sued Swan for patent infringment, despite Swan's patent being granted 1 year prior to Edisons. The two of them decided to join forces instead of continued litigation and became the world's leading suppliers of lightbulbs.
So, the world benefitted from the pa
Re:Next we know, (Score:4, Informative)
The Patent Event Horizon (Score:2)
My personal fear is that, sooner or later, so many patent-only companies will have patented critical techniques and be using the patents to milk software companies, that it becomes economically impossible to actually create any software. Sort of a "patent event horizon", so to speak.
Re:Next we know, (Score:2)
In related news (Score:2, Funny)
The gloves come off when ya hit first (Score:2)
Horray for Amazon taking the fight back to them.
Re:The gloves come off when ya hit first (Score:2)
Special Delivery from Amazon.com (Score:3, Funny)
For you, it's a lawsuit!
Now sit back, releax, and enjoy the concert!
Huh? (Score:2, Insightful)
Let me get this straight? Amazon sues people because they "used tools to provide secure credit card transactions"??? You mean like SSL? They SUED SOMEONE FOR USING FRIKEN SSL?
Ok, we don't know that. I'm sure there has to be something more than using SSL there, but still. If a company can patent something as trivial as "secure credit card transactions" and successfully win a patent infringement case, it will mean that all online stores will be liable. It's a scary thought...
No (Score:2)
("substantially" should be read in a wishy-washy, hand-wavey tone of voice)
SEND A MESSAGE TO JEFF BEZOS! (Score:2)
Send a message to Jeff Bezos. Don't buy from Amazon.
Let the patent wars begin (Score:3, Insightful)
It becomes more efficient to patent obvious buisness methods and steps to solving a problem, and then sue people using those methods to allow them to compete with you, rather than try and innovate.
Innovation costs money, Patent arsenals allow for wasteful practices to continue unabated for the lifetime of the patent.
The patent wars are just starting right now.
Which side are you on?
Re:Let the patent wars begin (Score:2, Insightful)
This is so true. We will be seeing more and more of this.
At some point, it will become impossible for a small or middle sized company to break into any market. It will be impossible to innovate in any marked, as all the corporate gigants will be locking out eachother with their patents.
And hopefully at some point someone will figure out what was going wrong and fix the patent system. But not before alot of finger pointing, yelling screaming and generally anti-consumer actions. Because of our patent law,
Re:Let the patent wars begin (Score:2)
In any (semi) capitalist economy, a system of patents and other methods of enforcing intellectual property is necessary (So that the creator is justly rewarded for his effort in creating something new). I agree with this, but now it seems as if the effort and cost of getting a valid new patent is ridiculous.
P
Patents protect monopolists, not capitalists.
Finally! (Score:1)
Amazon (Score:1, Interesting)
It's a pathetic game because software patents are in reality de
Re:Amazon (Score:1)
---
If nobody notices, it's not illegal.
Generated by SlashdotRndSig [snop.com] via GreaseMonkey [mozdev.org]
3 moneys (Score:2)
You get the gold value AND the historical value.
3 of those might do the trick!
Or did they mean the 3 monkeys?
Sam
$20000 ??? (Score:1)
patent my brain (Score:3, Interesting)
I'm just saying that the courts need to realize when companies are going too far with copyrights. Otherwise, my truly original and creative ideas may turn out to be nothing more than a vault of copyright infringements.
Re:patent my brain (Score:2)
I am sure the original creators of copyright didn't have patents in mind at all. (sigh)
American Economy (Score:1)
An interesting poll in slashdot could be how many times have you been sued personally. Although techies don't get involved in lawsuits but management officals get pulled in often.
Pointed Patents (Score:5, Insightful)
Re:Pointed Patents (Score:1)
Not enough information (Score:4, Insightful)
(Not, it's just simply "using the tools to" blah blah blah, it's got to be some particular tool or particular way of using them to even touch upon patent law)
So, basically, anything anybody says in this thread is speculation and wild-assed guessery. Except that statement and this one justifying it.
What's This Boycott Amazon Stuff? (Score:5, Insightful)
Amazon is really huge these days -- $600 billion or so a year in sales. That revenue is coming from non-ideologically motivated schmucks, not geeks who think and care about IP issues. A geek boycott will be about as successful as Jesse Jackson's boycott of Nike (he couldn't get blacks to do it).
Try it again, this time with feeling.
Re:What's This Boycott Amazon Stuff? (Score:2)
Re:What's This Boycott Amazon Stuff? (Score:2)
Uh, not THAT huge. Its revenue for the first 3 months of this year was $1.9 billion.
Re:What's This Boycott Amazon Stuff? (Score:2)
This is great news! (Score:3, Insightful)
Re:This is great news! (Score:2)
But I feel the real way to 'fix' the PTO is to find a patent that causes some company/ies to suffer financially (due to the likes of Amazon strong-arming them), get the PTO to invalidate it later on, then, since they originally validated an invalid patent causing said companies harm, sue the PTO for damages (class action preferably), and win the suit.
Then the PTO might finally clue in that software patents are bad, and potentially a
Sick of software patents (Score:4, Insightful)
Even though the patent system follows some honorable principles, the reality is that any patent suit brings down both companies involved.
I for one am going to buy "What the dormouse said." by John Markoff from www.penguinputnam.com/ instead of amazon today. Take that! (I just read a great review by Bill Joy of Markoff's book in Technology Review.)
Are there any sites that track how litigious companies are, so I can give my business to the ones that sling the least mud?
-Jim
Here's a quick fix for the Amazon problem (Score:1, Troll)
Until we can get the patent office reformed, we have to hit Amazon in the pocketbook. I believe this is a start.
Lawsuits cost the economy jobs (Score:2, Interesting)
I say let the warfare begin (Score:3, Interesting)
Perhaps if it gets absurd enough, congress will finally step in and do some reform however half-assed if only to cover their complicity in it all via the back door of campaign contributions and looking the other way.
Whatever happens, I'm rooting against Amazon until the day they go Chapter 13.
Credit Card Patent referred to in article? (Score:4, Informative)
Obvious (Score:1)
UPDATE: Details on Amazon's Patent Lawsuit (Score:5, Interesting)
Secure method and system for communicating a list of credit card numbers over a non-secure network [uspto.gov] (5,715,399), which is held by Bezos and covers displaying "the last N digits of the credit card number, where N is an integer,"
Internet-based customer referral system [uspto.gov] (6,029,141), which is also held by Bezos and covers Amazon's affiliate program,
Electronic commerce using multiple roles [uspto.gov] (6,629,079), which covers the use of "multiple electronic shopping carts," and
Navigating within a body of data using one of a number of alternative browse graphs [uspto.gov] (6,625,609), which describes how one might sell "a Pez candy dispenser in the shape of the Marvin the Martian."
BTW, Bezos' '399 patent was the subject of a curious 2001 Prior Art contest [archive.org] run by the Bezos-funded BountyQuest - ties to Bezos were never disclosed and the contest results were never revealed.
Re:UPDATE: Details on Amazon's Patent Lawsuit (Score:2)
So if N = 16, the patent actually covers displaying VISA numbers? Cool.
Re:UPDATE: Details on Amazon's Patent Lawsuit (Score:2)
Haven't shops been using similar techniques on till reciepts for ages? Is this just one of those cases, where someone takes an existiong technique, slaps "over the Internet" on the end, and patents it?
Im gonna patent.... (Score:1)
If a tree falls in a forest (Score:1)
Of course, common sense dictates that if you didn't know a patented invention existed, but you managed to reinvent it anyway, then it probably wasn't much of an invention in the first place.
The Register reports it better... (Score:2)
http://www.theregister.co.uk/2005/07/18/amazon_ p atent_suit/
Patent 5715399 [uspto.gov] is trivial. Its novelty is suspect, being a copy of what the CC companies' own cash register CC terminals usually do to obscure card numbers on recipts. Saying the Intenet makes it novel again is crap.
Concerning the infamous Internet Shopping Cart Patent 6629079 [uspto.gov], maybe they were the first to patent it, but I challenge the Slashdot crowd to hit the wayback machine for some pre-April-2003 perl CGI that implemented shopping carts.