Ebay Receives Patent For Online Auctions

Just posted a rant about this on my blog, but I think the news will interest a lot here as well.

ebay has today received an U.S. patent officials approval for "online auctions". The patent is called Computer-implement method and system for conducting auctions on the internet


IMHO it's totally absurd that some business can receive a patent for something as common as this. I fear this will cause great difficulties for lots of smaller (stamp related) auction websites like BidStart/Stampwants or DelCampe... News like this make me feel

Hi scubu,

It's in issued patents PATF-database, not in patents applications AppFT-database. So I assume it's approved.

BTW. What happened to scubus comment... I know it was there when I typed this, but now it's gone?

scb
After giving this Patent a quick look it appears to cover their process. NOT Internet auctions themselves. It is a common practice to cover a "Process" for doing something with a patent. It also does not mean that, a Patent will not be challenged, overturned and nullified.
I will have to forward this to My Brother to look at, He is a Patent & Copyright Atty.

I'd be interested to hear what your brother has to say on this... if it turns out to be the real deal, there's going to be a huge uproar over this. It isn't the first time that ebay has overstepped it's bounds in applying for patents... if I recall correctly, a couple of years ago they tried to patent "Buy It Now".

-Allen

In their Patent Application they cite that as well as a couple of dozen other claims. Like I said, just because you claim it, it doesn't mean it wont be challenged and overturned. It also doesn't mean that the Patent can be successfully defended if it is challenged!

OK, Here's the deal!

I just got off the phone with my Brother who is a Patent and TM Atty. I was correct, ebay received their Patent on their Internet Auction process. NOT on Internet Auctions! If another Auction used the same process, than ebay could sue for infringement. Would they win ??? Could another Auction site challenge, YES! Will they ??? He has a number of clients that have Patents on their Internet Auction processes. Personally I doubt ebay would go after any current Auction Companies. Even if they were violating ebay's Patent, It would bring a lot of unwanted bad Press. The other reason is that they could loose! That could cost them a fortune or even put them out of business.

ebay must have been hanging out with Bill Gates lately!

You could call it protection, or you could call it cut-throat business tactics, depending on how ebay chooses to play its cards.

By applying for a patent, that allows THEM to start suing others. ebay is big enough, so if they choose this route, they can win the battle of attrition. It's not about winning the suit, it's about draining the competitions funds.

I have no problem with a company trying to protect its intellectual property. But nowadays, there tends to be a blurred line between patents and trademarks. I guess I'm too idealistic when I think that a business should succeed and grow because it offers a better product/service at a good price.

That depends on weather ebay's patent is infringed upon or They are infringing on someone else's. When you apply for a Patent you try to make it as broad as possible. How ever sometimes you end up shooting yourself in the foot. By infringing on someone else's Patent.




They are 2 different things with their own standards. For example, A Mfg. process can be Patented not Trade Marked.
A Company Logo can be Trade Marked but not patented.

I agree, the difference between Patent and Trademark is quite clear. That doesn't mean companies won't try to make wiggle room and sneak something in as a patent.

The Patent office is supposed to have already done some basic research to indicate it is not already infringing upon an existing patent. That is one of many reasons why some patents take years and years to get approved. However, getting approved doesn't mean you are not open to challenges in court, as the Patent Office research is not that comprehensive in most cases. So you make a good point. But quite frankly, I don't think ebay cares. All the other competitors are much smaller. It's the ability to bully/intimidate/spend the competition in submission/bankruptcy -- that's the great temptation. A tactic that has been used so many times, whether it's with patents or something else such as just plain illegal business practices (remember the browser wars, Netscape won on paper, but lost where it counts).

A patent/trademark is supposed to protect a company. There are a lot of good lawyers that do a good job of doing that. It's not a piece of paper that can be used as a tool for other purposes. Unfortunately, there are some companies/executives/lawyers that think otherwise. It's their freedom, but makes for a much messier world.

Such is life...

Some good points. But, like I said this is really just S.O.P. They didn't do anything different than any number of other On-Line Auctions.




Wiggle room , Yes. Sneak in something that isn't Patentable, NO. If they do this they run the VERY real risk of having the Patent voided.

Agreed. But I'd be surprised if ebay really cared. I'm still guessing they are using this just as a ploy/leverage; they may not care whether it stands or not. We'll find out their true intentions in the next few years.

k

One last thing to add, for information only, just in case someone doesn't know it. ebay already owns several Copyrights, Patents, and Trade Marks.

Congratulations on Pillardom, rev'!!

I'm not sure how many know or remember what Amazon did with "one-click shopping (this is really short page to read, unlike the patent, LOL). This is similar process patent.

The good part of course is that the patent applies only to US. It's not worldwide.

K,

you have been away too long its not pillardom its martyrdom

congrats Rev

and K as I said earlier oscar winning movies dont finsih at half time. I could read yur posts all day :)