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Patent Fight (3/29/01)
FULL STORY:
The U.S. Patent office has made a real mess by granting patents for broad
business methods. Although the credit card industry has been green mailed
by many of these patents, particularly patents for reward and debit card
processes, the problem is most acute for Internet-based firms. This week,
New York-based Jupiter Media Metrix drove rival PC Data out-of-business
following settlement over a patent-infringement suit. The patent involves
the method used to gather data on Internet users. Following the PC Data
settlement, Jupiter filed patent infringement lawsuits against Nielsen
NetRatings and Paris-based NetValue. Ironically, the action comes on the
heels of the discovery of wide variations in the audience measurement data
reported by Jupiter Media Metrix. Early this month, DoubleClick and
comScore Networks discovered that, based on server logs, actual traffic to
most Web sites is substantially different than has been reported by
syndicated ratings services such as Jupiter Media Metrix. Also less
capitalized Web sites, with significant traffic and who do not subscribe to
the major rating services, tend to be excluded from the reporting.
Meanwhile, another broad business method patent fight has erupted over a
computer-implemented method of interactive fund raising over the Internet.
Witold Ziarno, a lawyer, has sued the American Red Cross for refusing to
pay him a royalty for using the Internet for fund raising in violation of
his patent. It is becoming clear that the U.S. Government has succeeded in
stifling and hampering the growth of I-commerce with the issuance of these
silly patents.
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