Court Invalidates Infamous E-commerce Patent

from the took-'em-long-enough dept

In January of 1999 the Supreme Court refused to hear an appeal on the State Street patent case, where the appeals court had said business model patents were fine (prior to that it had been commonly accepted that you couldn’t patent business models). That opened the floodgates on attempts to patent business models. It took a little over a year for it to sink in why this was so troublesome, and in the summer of 2000, there were a bunch of articles about problematic business model patents. The poster child for these articles was an extremely broad patent from DE Technologies for what amounted to “international e-commerce.” Why that was deserving of patent protection was not clear, but with the way the patent system works, it was approved. In 2004, the company went after Dell for daring to sell computers internationally using e-commerce (an idea they obviously never would have come up with in absence of such a patent). It appears that the District Court in Virginia has recognized the problems with this patent and has declared it invalid. It’s likely that this will be appealed, but, for the moment, feel free to continue participating in international e-commerce without worrying about paying some random patent holder.


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Comments on “Court Invalidates Infamous E-commerce Patent”

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39 Comments
parched says:

Re: Re:

I cannot speak for anyone else, but I love Tech Dirt’s relentlessness in in reportng on these issues. The greedy elements in the “intellectual propery scams” are accustomed to stealthily lobbying for laws an apathetic public rarely becomes aware of until too late,

Precious few in the current media have called them on it.

Tech Dirt is filling a much needed void in the reporting media. I often print out the articles and pass them around with notes that direct the reader to the Tech Dirt site for more information. I’ve gotten a few people interested in finding out more and some to actually write their representatives in Washington.

I say ” “Hurrah, keep it going guys, you are making steady dents in a “Goliath”.

charlie potatoes says:

Re: something better to do?

hey AC i notice u never miss commenting on a story…i was wondering if you didn’t have anything better to do…oh..btw… that ‘fookin’ fake brit accent ain’t foolin nobody.. so..FUCK YOU, TOWEL HEAD, get a life and stop boring us with your asinine comments.

Cam says:

Re: Re: something better to do?

Ha ha ha. Man, that last post was hilarious — Just who is this “Anonymous coward”? And how *does* he manage to post in all of these threads. Sometimes he’s British, sometimes he’s not. Sometimes he’s articulate, sometimes he’s not. He’s just a hard guy to get a read on.

Laughing says:

These types of patents are controversial because critics say they protect obvious processes. But Bruce Lagerman, president of DE Technologies and a former patent attorney, believes that his firm’s case is “rock solid,” according to the Wall Street Journal.

This is from another article. Reading this the word ‘jackass’ comes to mind.

Say, I think I need to patent stupidity, I’d be richer than the top ten combined….

Grokodile (user link) says:

Damned Patents

I don’t know what happened, maybe it was politically movited (as of course all bad ideas must be… j/k) or something.

Anyway, it’s about time somebody started to undo the damage done by granting everyone a patent for anything they claimed first.

By the way, I hodl the patent on posting comments to an online medium. You all owe me money…. thx!

bldkcstark (user link) says:

Patents

Patents and patent law has made America what it is today. Before you start ripping on the U.S. look around the world and tell me where you will be moving to. If you have a novel idea and can implement it in a semi-novel way your economic and other rights to that idea should be protected. That is the reward for forward thinking in the U.S. When you don’t have a reward system, or the system is used retrospectively (business models), then things start to go wrong. I know that some people abuse the system by trolling for patent violators, and that is wrong. Very much like the company in question. There are also patent laws that state that any patent that is not enforced over a period of time may be invalidated, and a patentable item that has been in the marketplace for 18 months without application or enforcement cannot be patented. I doubt that this company will win. ROCK SOLID or not, some courts use jackhammers.

Joe Smith says:

Re: Patents

Patents and patent law has made America what it is today

That is doubtful. For example, patent law held the US back after inventing the airplane so that the French took intellectual leadership in aeronautics. Patent law at best and taken overall is probably only neutral in its effect and has been negative in some respects.

Not every idea is patentable and not evey patent is enforceable. Any idea which can be copied and used directly by the consumer, however useful it may be, cannot be the subject of an effective patent. Some of the best and most important ideas have always been outside of the reach of patent law.

More than patent law the US was helped along by the Morrill Act of 1862 which promoted the land grant colleges (the A&Ms) to promote the dissemination of agricultural and mechanical arts. It was the A&Ms together with high immigration and social mobility which laid the basis for American success.

Search Engines WEB (user link) says:

Broad Intellectual Property or Specific Technology

Here are the initial press releases about the patents…



http://www.detechnologies.com/press/release-2002-10-01.htm

http://www.detechnologies.com/press/release-2005-01-19.htm

If they are patenting a TECHNOLOGY – that is one thing, but if they are getting greedy and patenting an entire Business Process, that is where it could hurt competition and / or be too broad for “Intellectual Property” coverage.

Perhaps, they overreached their bounds when defining what should be protected, but it IS understandable why they would want to get some ROI for a process that they alone invented and that is being used to help extremely large organizations get richer.

DKO says:

Re: Broad Intellectual Property or Specific Techno

Read the press releases well and you will understand they didn’t “invent” any PROCESS. Companies were doing that successfully for many years before they “patented” this “innovation”. I personally launched international (EMEA) e-commerce operations for a small multinational, including cross-border order entry, multiple currencies and tax rates, shipping and tax compliance in the year 2000. We used an off-the-shelf software package by (guess who) Microsoft, designed for (guess whom) SME/SMBs. So the claim that they are the only ones targeting small companies is a big fat lie.

This is using wordsmithing to bilk money out of big companies; con clueless bureaucrats into granting exclusivity on “no-duh” business processes; and waste thousands of man-hours of your American public resources and taxpayer dollars for their own benefit.

If I were an American, I would be angry.

These people just plain suck.

Andrew Pollack (profile) says:

From the "inventor" perspective.

I am in the middle of this now. Today.

I have a business model I’m moving forward and preparing for market. It is innovative in the way a few technologies are pulled together to make an overall process.

The process is profitable. Its innovative. Is it patentable? I wish it were not. Personally, I hate the idea of patenting processes like this. I hate it for all the reasons everyone else reading this hates it.

Still, if I opt not to patent it — according to some very good lawyers — I put myself at great risk for being stopped in the future from having this business. Ugly, isn’t it?

So morally, I would prefer not to patent. Legally, it appears I almost have to.

Jamison Steads says:

Re: From the "inventor" perspective.

You are quite correct and I agree, a very realistic perspective. That is an unfortunate reality of today’s marketplace – too many unethical & greedy people. I say go forward and patent your unique process for moral & ethical reasons based on the analysis you’ve gone through. But don’t go suing people left and right like the DE individuals are now doing just to make monies off of something others are doing that might inadvertently mimick someone else’s process.

Danno says:

Re: From the

I’m no expert but I am in the middle of studying for the Patent Bar (allowing me to file applications to the Patent Office). One way to prevent others from patenting your business method would be to publish it. This would make your idea “prior art” and therefore unpatentable by others. Of course by publishing you do make your method accessible to others but by publishing in a relatively obscure periodical this may reduce that risk. Since I am not an attorney (though I hope to be) you should consult with one on this.

Jamison Steads says:

Thieves Trying To Steal Revenues From Others!

This amounts to a gigantic ripoff of other companies’ revenue streams. Their patent approved is for their “BOES” System (Borderless Order Entry System). DE is claiming they “invented the computer process to electronically manage and process the complex elements of international trade logistics and transactions”. It’s not “the” computer process, but rather “a” computer process. These guys are full of crock. Quick Flashback: International e-Commerce has been going on for many hundreds of years before these guys were even born. I think there’s far too much idiocy nowadays: These DE idiots for wasting a lot of peoples’ time, money, resources; and the USPTO idiots for giving these guys wayyyyy too broad of an approval, instead of placing strict limits on their technology process & its applicability.

Bob Smith says:

Quick Flashback: International e-Commerce has been going on for many hundreds of years before these guys were even born.

I find it difficult to believe that e-Commerce (“Commerce that is transacted electronically, as over the Internet.” dictionary.com) has been going on for “many hundreds of years.”

Nice try though; you almost had me fooled.

Graham says:

I find it difficult to believe that e-Commerce (“Commerce that is transacted electronically, as over the Internet.” dictionary.com) has been going on for “many hundreds of years.”

OK, it might not be hundreds of years, but it does date back to the nineteenth century when the original internet was better known as the telegraph.

Gowda says:

A question on Patents. Legal opinion needed

There is a patented product and say another person has invented a new product similar to the original one with a more advanced functionality. The new product cannot be built without violating the claims of the original product. So, can he atleast claim a patent for the advanced functionality(comapred with the patented product) that the new invention is exhibiting, if the change of functionality is worthy of recognition??

Gowda says:

A question on Patents. Legal opinion needed

There is a patented product and say another person has invented a new product similar to the original one with a more advanced functionality. The new product cannot be built without violating the claims of the original product. So, can he atleast claim a patent for the advanced functionality(comapred with the patented product) that the new invention is exhibiting, if the change of functionality is worthy of recognition??

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