Businesses patenting e-commerce systems have aroused significant controversy. Nevertheless there is definitely growth in patenting business methods and e-commerce systems. Kevin Kilgour, a partner with Hesketh Henry in Auckland, discusses e-commerce patenting.
There has been controversy over amazon.com's "one click" e-commerce patent, which covered the "invention" of a single mouse click as an on-line ordering technique. Opponents complain that the "one click" patent does not meet the main criteria for patentability, those of inventiveness or not being obvious to an expert in the field.
It is therefore surprising that Apple Computer has announced that it has licensed amazon.com's "one click" invention for use in Apple's on-line store, www.apple.com. Apple has stated that incorporating the "one click" technology would allow it to provide customers with a faster and easier on-line buying experience. This is a significant development as Apple Computer is a prominent industry player. Therefore it is interesting to see that it has licensed Amazon's "one click" technology, rather than develop a similar system, or challenge the validity of the amazon.com patent.
Clearly, the licence details are confidential. Nevertheless, we would expect amazon.com to receive an ongoing royalty stream for use of the patented invention.
Apple's licensing of the "one click" technology certainly lends credibility not only to amazon.com's "one click" patent, but to e-commerce patents generally.
Notwithstanding that, the rules for patenting inventions have not changed. Patents still must be new, non-obvious, and have application in business and industry. The general concern that numerous e-commerce patents are not novel, and are vulnerable to attack on these grounds, remains.
It is yet to be seen if many of the business methods and e-commerce patents will stand the test of time. In this interim period, however, those considering licensing or exploiting a patent must thoroughly investigate its validity and the rights it will grant, before deciding whether to license it.
Copyright The Lawlink Group Ltd 2001
Every effort has been made to ensure that this information is accurate. However, it is general introductory information only. It does not constitute legal advice and should not be relied on as such. Specialist legal advice should be sought in particular matters.
Kevin Kilgour is a partner in the Lawlink firm of Hesketh Henry. Kevin's principal areas of practice are in commercial and corporate law and intellectual property.
Web site: Hesketh Henry
Email: kevin.kilgour@heskethhenry.co.nz
April 2001
There has been controversy over amazon.com's "one click" e-commerce patent, which covered the "invention" of a single mouse click as an on-line ordering technique. Opponents complain that the "one click" patent does not meet the main criteria for patentability, those of inventiveness or not being obvious to an expert in the field.
It is therefore surprising that Apple Computer has announced that it has licensed amazon.com's "one click" invention for use in Apple's on-line store, www.apple.com. Apple has stated that incorporating the "one click" technology would allow it to provide customers with a faster and easier on-line buying experience. This is a significant development as Apple Computer is a prominent industry player. Therefore it is interesting to see that it has licensed Amazon's "one click" technology, rather than develop a similar system, or challenge the validity of the amazon.com patent.
Clearly, the licence details are confidential. Nevertheless, we would expect amazon.com to receive an ongoing royalty stream for use of the patented invention.
Apple's licensing of the "one click" technology certainly lends credibility not only to amazon.com's "one click" patent, but to e-commerce patents generally.
Notwithstanding that, the rules for patenting inventions have not changed. Patents still must be new, non-obvious, and have application in business and industry. The general concern that numerous e-commerce patents are not novel, and are vulnerable to attack on these grounds, remains.
It is yet to be seen if many of the business methods and e-commerce patents will stand the test of time. In this interim period, however, those considering licensing or exploiting a patent must thoroughly investigate its validity and the rights it will grant, before deciding whether to license it.
Copyright The Lawlink Group Ltd 2001
Every effort has been made to ensure that this information is accurate. However, it is general introductory information only. It does not constitute legal advice and should not be relied on as such. Specialist legal advice should be sought in particular matters.
Kevin Kilgour is a partner in the Lawlink firm of Hesketh Henry. Kevin's principal areas of practice are in commercial and corporate law and intellectual property.
Web site: Hesketh Henry
Email: kevin.kilgour@heskethhenry.co.nz
April 2001
July, 2001
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