E-Commerce Patent Blackmail — You May Be Next!

Over the closing 8 years, the promise of the Internet has been

to degree the taking part in box between small companies and primary


With a web page, a small trade may now promote their merchandise

within the world marketplace position with out the overhead of extra

places of work. To take advantage of e-commerce, one best wanted

a web page to draw and promote to shoppers, and one wanted a

option to acquire bills from their newly obtained shoppers.

Since the Internet is actually only a community of computer systems, it

made absolute best sense to merge digital switch of budget into

the web page to simplify the buying procedure for the client.

To date, the one actual obstacle to doing trade on-line has

been the security of the patron’s monetary information. In March of

2002, this all modified.

Enter the U.S. Trademark and Patents Office. Over the previous few

years, the USTPO has proven excessive lack of awareness of latest Internet

applied sciences. The USPTO has authorized one of the vital maximum ludicrous

patents to be offered to them.

In 1997, AltaVista used to be granted a lot of patents on seek

engine applied sciences, even supposing seek engine era had

been in use as early as 1989.

In 1999, Amazon used to be given a patent for “one-click buying.”

In 2001, McAfee used to be granted patents for “Auto-Downloading of

Software / Software as a Service (SaaS)”, either one of which had

been in use via others since earlier than the introduction of the worldwide


In 2002, PanIP (Pangea Intellectual Properties L.L.C) of San

Diego, California entered the fray. They had been granted two

patents: US Patent No 5,576,951 and US Patent No. 6,289,319.

The first patent covers the “use of graphical and textual

data on a video display for the needs of constructing a

sale.” The 2d covers “accepting data to behavior

computerized monetary transactions by means of a phone line &

video display.”

Most Patent professionals don’t take those “junk patents” critically

understanding complete smartly that they’re going to be overturned via the courts

and different processes set as much as police the device. However, John

D. Trudel, the Founder and Managing Director of The Trudel

Group, identified that “this nonsense raises the price of

trade, because it takes years and prices $1 million or so

to damage those junk patents.”

Herein lies the adaptation in PanIP’s technique. Big firms

who’ve deep wallet settle maximum “junk patents” in court docket.

Amazon took their preliminary problem to their number one competitor,

BarnesandNoble.com. B&N had the sources to combat this “junk

patent”, in order that they fought.

PanIP has as a substitute directed their assaults at small firms

who merely would not have the sources to combat! In reality, PanIP

has these days sued 50 small companies without end.

Timothy Beere, the landlord of DeBrand Fine Chocolates, needed to

make a selection when he discovered himself within the crosshairs of PanIP.

Tim stated, “I needed to decide. Pay them the $5000 they

had been requesting one thing I did not suppose that they had a proper to,

or Fight Back!” He went on to mention, “It used to be transparent that PanIP’s

technique counted at the perception that few, if any, of the

companies could be prepared combat again. I used to be!”

Tim proceeded to touch the opposite firms which have been

sued via PanIP to construct a consensus to get up and combat.

Many have joined in combination within the combat beginning the PanIP

Group Defense Fund, Inc.

In development his web page (http://www.youmaybenext.com), Tim

stated, “I knew if I may get this at the radar display, other people

could be as disgusted via it as I used to be.”