December 19, 2006
Seven weeks after being sued for patent infringement by IBM, Amazon is firing back, denying it had taken
IBM technology. Amazon.com also asserts that IBM's patent claims are too broad to be taken seriously. As a result,
Amazon is now countersuing IBM for stealing its very own patents.
Last October, IBM filed a lawsuit against Amazon in the U.S. District Court for the Eastern District of Texas,
claiming Amazon.com is using without its permission technology covered by five patents held by IBM.
In filing a proper response and countersuit, Amazon said IBM's original suit made "meritless and misleading" claims.
"For its part, IBM has accused Amazon.com of infringing three patents that were not even developed at IBM, but
rather were bought from a now-defunct company for the apparent purpose of threatening other companies with
litigation like this to extract licensing payments," the filing said.
"IBM's broad allegations of infringement amount to a claim that IBM invented the Internet," lawyers said
in the filing. Amazon countersued, saying that IBM is using Amazon technology in Websphere and in its information
management services and products. Such a claim could be significant because it could expose IBM's customers to
patent infringement claims, as well.
Neither company would comment on the case. The lawsuit takes aim at a number of the core pillars of the Amazon site,
including some of the factors that have helped distinguish it as an eCommerce leader, such as its customer
recommendations based on past purchases feature.
IBM's patents appeared to be overly broad for that very reason. For instance, one patent covers a means of "presenting
applications in an interactive service." Another involves "presenting advertising in an interactive service," and
a third covers technology for "adjusting hypertext links with weighted user goals and activities."
Still another deals with "ordering items using an electronic catalog." In its original lawsuit, IBM said it had
first contacted Amazon about the patents more than four years ago, in an attempt to strike an agreement to license
the technology.
At the time of the suit (in Sep. 2002), patent attorneys noted that IBM had filed two suits in the Texas district
-- which is known to be favorable to companies prosecuting patent cases -- and that some of the patent claims seem
so broad they could apply to a host of other Web companies.
Amazon sounded the same theme in its latest filing. "If IBM's claims are believed, then not only must Amazon.com
pay IBM, but everyone conducting electronic commerce over the World Wide Web (indeed, every Website and potentially
everyone who uses a Web browser to surf the Web) must pay IBM a toll for the right to do so," the filing reads.
That idea, it adds, is "nonsense."
IBM has long been one of the top patent-generating companies in the world, building up a massive intellectual
property storehouse over the years, with some 40,000 patents to its name around the world. Big Blue typically
secures more patents in the U.S. each year than any other company.
IBM recently became a voracious acquirer of small software firms to build out its own portfolio, adding
dozens of companies in the past five years, many of them with their own patent portfolios.
One important consideration could be whether or not other eCommerce or other Internet companies have purchased
licenses from IBM for the technology mentioned in the lawsuit. At the same time, lawyers are betting against a
quick resolution to the case, especially now that both sides have claims against the other party.
Past cases have taken years to move close to trial, said patent attorney David A. Roodman, co-chair of the
Intellectual Property Group at the international law firm Bryan Cave. For Amazon, the stakes may be particularly
high as the technology involved is at the core of what it does. "Given the stakes, you are likely to see the sides
dig in their heels," Roodman said in a phone interview.
Source: IT World Canada
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