It's interesting why they are doing it in New Zealand. Perhaps because
they feel they need to make some money here to finance their future
litigation in the US? If the e-commerce industry in New Zealand
(however it may be defined) feels this is a threat, it would be a good
idea for somebody to get in touch with a relevant body in the US (e.g.
the US Internet Industry Association http://www.usiia.org/) to get some
support to deal with threat. 

Cheers,
Andrei Link

-----Original Message-----
From: Vicki Hyde [mailto:[EMAIL PROTECTED] 
Sent: Thursday, July 10, 2003 10:16 AM
To: Canterbury Software Email Forum
Subject: [csforum] NZ e-tailers dunned for patent breach


Here's something to make you sit up and take notice, if you're into
ecommerce services and solutions:

Canadian company DE Technologies has been granted patents in New
Zealand, the US and Singapore covering cross-border e-commerce
processes, which range from currency conversion and electronic invoicing
to creating databases of purchase histories, and local patent lawyers
James & Wells are already dunning small operations here for a "signing
fee" of US$10,000
($16,762) and a "royalty rate" of 1.5 per cent of website transaction
value. DET also wanted 11 centsUS for documents generated - from
commercial invoices to packaging lists and import declarations.

DET are also taking on internet providers with a licensing model that
would apply to ISPs which host infringing e-commerce operators and would
involve paying an upfront fee of US$25,000 covering 25 merchants and a
further US$1000 for each additional e-tailer it hosts. This licence type
would attract a royalty rate of 1.15 per cent of total transaction value
and 5.5USc per document produced.

More on this story here:

http://www.nzherald.co.nz/storydisplay.cfm?storyID=3511627

Any IP law folks interested in commenting? Is this a beat-up, or
something we should take note of? And if the latter, what, if anything,
can be done or should be done?

Beats me how having a database of purchases can be patentable (does this
actually differ substantially from non-electronic practice??), but the
law works in mysterious ways...

Sounds like it could mean a major shutdown of ecommerce for NZ
operations if this is really enforceable. The Herald story covers one
small operator which sounds likely to have to go out of business rather
than continuing, and there have been a number of these letters go out it
seems.

Maybe there's a whole new business there -- see if you can get a patent
in NZ to cover a Web solution of some sort and then see how many
businesses you can bankrupt...

Gloomily,
Vicki Hyde


======================================================
SPIS Ltd, Box 19-760, Christchurch, NZ http://.spis.co.nz
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