Rather alarming isn't it. Perhaps this might help?

Terabyte Interactive (an Auckland based company - www.terabyte.co.nz) have
been providing e-commerce solutions since 1988 when they became the first
New Zealand web developer to clear credit card transactions using Microsoft
Commercial Internet Server.

Those of you preparing for battle might want to consult them.

Hope this helps.

Erron Henderson
EOS Interactives Limited


At 10:15 10/07/2003, you wrote:
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




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