Tom asks:

> Can you say what case it was that Amazon won?

The following is from the December 3rd issue of the New York Times:

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December 3, 1999


Amazon Wins Court Ruling in Patent Case

By SAUL HANSELL

Signaling that many common features on Web sites can be patented, a federal
judge has ordered Barnesandnoble.com to stop using a "one click ordering"
system that Amazon.com patented.

Judge Marsha J. Pechman of Federal District Court in Seattle issued a
preliminary injunction late Wednesday in a case filed in October by Amazon,
the online store that pioneered many now-common techniques for retail sales
on the Web.

Patent lawyers say it is rare for such injunctions to be issued in patent
disputes. But the judge ruled that Amazon's case "demonstrated a reasonable
likelihood of success on the basis of merits." Moreover, she wrote that
Amazon would face "irreparable harm" if it did not have exclusive use of the
one-click feature during the holidays, when as many as 10 million people are
expected to shop online for the first time.

This is the first ruling in what experts expect to be a flurry of disputes
over patents related to Internet sites.

Already Priceline.com has sued Microsoft, contending it violates Priceline's
patented method for consumers to name their own price for hotel rooms.

Barnesandnoble.com introduced its "Express Lane" one-click ordering system in
May 1998.


Experts say they expect many more such suits as patents filed over the last
few years are granted.

"This injunction is going to send shockwaves through boardrooms across the
country," said Robert Greene Sterne, a patent lawyer with Sterne, Kessler,
Goldstein & Fox in Washington. "Internet companies that have not been filing
for patents, for whatever reason, are going to be in a tough spot."

At issue in this case is a feature on Amazon's Web site, introduced in
September 1997, called "one click ordering." It enables customers to click on
a single button on a screen to order an item. To use the feature, customers
must have previously registered their names, addresses and credit card
information.

But the judge did provide an alternative for Barnesandnoble. She ruled that
the patent specifically incorporates methods to purchase an item over the
Internet "using only a single action."

The judge wrote: "The evidence indicates that Barnesandnoble.com can modify
its 'Express Lane' feature with relative ease.

For instance, infringement can be avoided by simply requiring users to take
an additional action to confirm orders."

Jonathan Bulkeley, the chief executive of Barnesandnoble, said the company
would soon replace its one-click system with one that requires two clicks to
order.

He said this would be part of an improved system that the company had planned
to introduce next year. After clicking the first button, next to the name of
a book, the customer will now see several options, such as a choice of
shipping addresses. Clicking on one of those will complete the order.

Nonetheless, Barnesandnoble said it would immediately appeal the preliminary
injunction and that it ultimately expected to win the case after a full
trial.

The Barnes & Noble bookstore chain owns about 40 percent of the online
company's stock, as does Bertelsmann, the big German publishing concern.
Public shareholders own the remaining stock. Barnesandnoble.com has marketing
relationships with other sites, including The New York Times on the Web,
which refers potential customers to Barnesandnoble.com through advertising
links on its books section.

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