To: Marty who wrote (579 ) 8/27/1998 9:40:00 PM From: Doug (Htfd,CT) Read Replies (2) | Respond to
C/Net: "Will patents help e-commerce?" features OMKTnews.com addresses the effects of July 23 U.S. Court of Appeals decision in State Street Bank vs. Signature Financial Group at law.emory.edu that patents for a way of conducting business are legitimate. "appears to give smooth sailing to a flurry of e-commerce patents issued this year, cheering e-commerce patent holders but potentially creating big headaches for Internet shopkeepers." "The U.S. Court of Appeals decision means some Net merchants may find that their basic business model or technology has already been patented by a competitor. And that rival may be in a position to demand licensing fees." "Basically, it said that software patents directed to methods of doing business should be treated the same way as patents involving any other area of technology." "The first major e-commerce patents were granted in February to Open Market, an e-commerce software firm that won patents on electronic "shopping carts," tracking, and secure credit card payments." "Open Market CEO Gary Eichhorn said in March that the company intended to license its patents broadly, but no licensing deals have been announced." "Even patents that have been issued won't necessarily stand up to legal challenges. The key criteria are that the patent be original and "not obvious." That means even a patent issued by the U.S. Patent and Trademark Office can be overturned if "prior art"--an earlier instance of someone creating the same technology or technique--is found." "I don't think there's anything different about electronic commerce that would say that it makes sense to have a different rule or exception for patents in that area," he is quoted in article.news.com Net Nuggets: Thoughts on ECommerce dougsimpson.com
