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(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
browsers, embeddable, patents, plugins, widgets

Companies:
adobe, amazon, apple, blockbuster, citigroup, ebay, eolas, frito-lay, godaddy, google, j.c. peney, jpmorgan chase, microsoft, office depo, perot systems, playboy, stabples, sun, texas instruments, yahoo, youtube



Eolas Is Baaaaaaaaack; And It's Suing Everyone Over Embeddable Web Widgets

from the because-otherwise... dept

Well, here we go again. As you may recall, Eolas is a company that claimed to hold a patent (5,838,906) on browser plugins. The company sued Microsoft, and a long drawn-out battle ensued. Even though web inventor Tim Berners-Lee presented prior art and asked the USPTO to invalidate Eolas' ridiculously broad and obvious patent, the USPTO eventually upheld the patent (after initially rejecting claims). Even as Microsoft began presenting evidence that it actually had made use of the technology in question before Eolas applied for its patent, losses in the courts and the Supreme Court's refusal to hear the case eventually resulted in Microsoft agreeing to settle rather than continue to fight.

Since then (two years ago), plenty of people have been waiting for the other shoe to drop, concerning Eolas' plans to sue others. Now we know why it waited. It's now received a new patent -- a continuation patent, which is often used to abuse the patent system by putting forth a broad patent, then filing for continuations to make changes that let an earlier "invention" cover technologies that later become popular. In this case, the new patent (7,599,985), which basically just extends the earlier patent on browser plugins, and extends it to javascript widgets. Yes, those embeddable widgets used all over the web? It appears that Eolas thinks that those are infringing and everyone should pay up.

The new lawsuit has been filed against Adobe, Amazon, Apple, Blockbuster, Citigroup, eBay, Frito-Lay, Go Daddy, Google, J.C. Penney, JPMorgan Chase, Office Depot, Perot Systems, Playboy Enterprises, Staples, Sun, Texas Instruments, Yahoo, and YouTube. Apparently, starting small isn't part of the plan. Not surprisingly, Eolas filed in Eastern Texas using McKool Smith -- one of the most popular law firms representing patent holding firms in East Texas.

I am honestly curious how patent system defenders, who are also programmers, can defend this. I'm sure non-programmers will claim that the patent is valid, but I can't imagine how anyone who has any knowledge of basic programming principles can claim that such a patent is valid. In the meantime, tons of companies doing an incredibly basic thing on the web will now have to waste millions of dollars fighting a ridiculous patent lawsuit. How is this promoting innovation in any way shape or form?

51 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
patents, payment

Companies:
actus, amazon, american express, apple, bank of america, barnes & noble, best buy, capital one, citigroup, disney, ebay, google, jp morgan, mastercard, visa, vivendi, wal-mart, western union



Store Payment Info In Your Online Store? Watch Out For Patent Infringement Lawsuits

from the pay-now dept

Bill Squier alerts us to the news that a bunch of companies have been sued for daring to store consumer payment information and allow either stored value payments or one-click payments on their site. The article linked here focuses on Apple as a defendant, and notes 14 other companies were sued as well, but in researching this, I found that Joe Mullin actually wrote about another batch of companies (20 of them) that were sued back in April. The earlier lawsuit included Google, Wal-Mart, Bank of America, Capital One, JP Morgan Chase, Mastercard, Visa, Vivendi, Disney and Western Union among others. The more recent lawsuit has (as mentioned) Apple, Best Buy, Amazon, American Express, Barnes & Noble, Citigroup and eBay among others. So... basically any online e-commerce site, credit card company or big bank.

As for the patents in question, they're all a variation on a "method and apparatus for conducting electronic commerce transactions using electronic tokens." The specific patents are 7,376,621, 7,249,099, 7,328,189 and 7,177,838. Reading through the claims, this seems like an incredibly typical online system for storing payment info and seeing if the person can actually pay. Since the patent system defenders among our readers get quite upset whenever I say something seems "obvious" to me, let's flip this around. Can anyone explain how these concepts were not obvious at the time of filing?

Not surprisingly, the cases have been filed in Marshall, Texas... and as Joe Mullin figured out, the guy who is running "Actus" is a lawyer known for representing some infamous patent hoarding companies. He also discovered that the lawyer representing Actus in these lawsuits appears to share an office (or at least the same address) with the son (who is also a patent attorney) of the judge handling the case. At some point, do people start questioning whether or not there's a conflict of interest there?

35 Comments | Leave a Comment..

 
Wall Street

Wall Street

by Joseph Weisenthal


Filed Under:
banks, wall street

Companies:
citigroup, goldman sachs



More Banks Set To Establish Their Own Stock Exchanges

from the privately-public dept

Last week, private equity firm Apollo Management announced that it would sell shares of itself on a private stock exchange run by Goldman Sachs. Because the exchange is closed to most investors, companies listing on it don't have to comply with various government regulations, which they would if they were to list on, say, the New York Stock Exchange. Considering all of the headaches associated with being a public company these days, this option may look increasingly appealing for companies looking for an alternative way to raise money and give its owners liquidity. It's not surprising, then, that many of the big name investment banks, including Citigroup, JP Morgan, Lehman Brothers, and Morgan Stanley are all rushing to build out their own private, electronic stock exchanges. The question, however, is whether or not these various exchanges will be compatible or whether they'll be islands, with little inter-exchange trading. If they're the former, then a robust alternative market could flourish. If it's the latter, then the appeal to both traders and companies is likely to be limited.

5 Comments | Leave a Comment..

 
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