The Technology Law Society of NZ is taking a very keen interest in this.  An
initial briefing paper to the TLS Committee covering the absolute "bare
bones" of the matter has been prepared. I will see if it is available for
wider distribution.  A key point, in relation to whether or not the patent
holds up, is that the questions of novelty and uniqueness have to be tested
against what was known in the art at the priority date of the patent. The
patent in question is only a year old but is based on a 1997 US patent.
Something not at all novel now might well have been novel in 1997.

The Society's understanding is that at least one large retailer is looking
at joining with others to fight this patent.  So small businesses should not
assume that they have to roll over and be crushed.

So it's not a beat-up but a developing story well worth keeping tabs on.
It's early days yet!

Fraser Goldsmith
Anderson Lloyd Caudwell
DDI  +64 3 471 5439
[EMAIL PROTECTED]


-----Original Message-----
From: Vicki Hyde [mailto:[EMAIL PROTECTED]
Sent: Thursday, 10 July 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
* FREE TurboNote+ sticky note trial: http://TurboNote.com


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