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June 3, 2009 9:09 AM PDT

Apple, others sued for patent infringement

by Jim Dalrymple

Apple is among 15 companies that have been slapped with a lawsuit by Actus. The company claims the defendants infringed on four of its patents.

The lawsuit, filed on May 26 in the Eastern District of Texas, Marshall Division, describes a method of using electronic tokens for e-commerce that Actus says the companies infringed on with their own systems. For example, the lawsuit claims that the Apple Store, iTunes, and the App Store all infringe on the Actus patents.

Actus claims four counts of infringement for e-commerce patents that were issued between February 2007 and May 2008.

Companies involved in the lawsuit include Amazon.com, Amdocs, American Express, Apple, Barnes & Noble, Best Buy, Cabela's, Citigroup, eBay, FirstView, Marketing Technology Concepts, NetSpend, OfficeMax, U.S. Bancorp, and ViVOtech.

Actus is seeking a permanent injunction against all of the companies preventing them from using the e-commerce technology, as well as monetary payments for damages.

Jim Dalrymple has followed Apple and the Mac industry for the last 15 years, first as part of MacCentral and then in various positions at Macworld. A guitar player for 20 years, Jim also writes about the professional audio market, examining the best ways to write and record songs on a Macintosh with Logic Pro and Pro Tools. Jim is a member of the CNET Blog Network and is not an employee of CNET.
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by NickH June 3, 2009 9:34 AM PDT
See, I think if you sue 15 companies who have all independently come up with the same thing covered by your patent, it really does point to the fact that is was maybe fairly obvious in the first place.
Reply to this comment
by The_happy_switcher June 3, 2009 10:37 AM PDT
No, they are suing because they are alleging that those companies are making, selling and/or using their technology. The road to an issued patent usually entails overcoming obviousness rejections during the prosecution of the patent. Rest assured the defendants will probably ask for a reexamination of the patent--the cheapest and very effective way to challenge a patent lawsuit.
by Beezoo June 3, 2009 9:38 AM PDT
. . . and of course the suit was filed in the very same corrupt East Texas court where all frivolous patent infringement suits seem to originate. Yawn.
Reply to this comment
by myles taylor June 3, 2009 9:43 AM PDT
They're hoping these companies will settle. They don't really want to take on the legal teams of Apple, Amazon, B&N, Ebay, Best Buy, etc.

I find it interesting that Apple was the only one in the title. I guess they are the biggest target, given that iTunes has the biggest market and probably the biggest attention grabber so it will generate more clicks.
Reply to this comment
by Goodbye Helicopter June 3, 2009 9:48 AM PDT
no, apple is the biggest click-through driver for cnet.
by themrwhite June 3, 2009 9:54 AM PDT
Exactly
by shycelticwitch June 3, 2009 10:24 AM PDT
Apple is the "mention" because it is the company that stands to lose the most. "snark". LOL This would be like a gnat on a watermelon as far as Apple is concerned. A quick swat and it will be gone.

@Goodbye... nothing intelligent to say?

@themrwhite... agreeing with FUD?
by wigmo June 3, 2009 9:46 AM PDT
I have a patent on frivolous lawsuits. I'll be seeing Actus in court.
Reply to this comment
by nouser June 3, 2009 9:51 AM PDT
A) We have way too many lawyers.

B) This makes clear to all that our patent system is so badly broken.

C) What ever happened to going after those filing frivolous lawsuits.
Reply to this comment
by Michichael June 3, 2009 10:05 AM PDT
Weird, no comments are showing up. Anyway - big surprise. Nother random company trying to rip off the successes of others.
Reply to this comment
by Pete Bardo June 3, 2009 10:05 AM PDT
Interesting story, Jim, but absolutely no detail about the patents and no link for further information. At least it was a quick read.
Reply to this comment
by FellowConspirator June 3, 2009 10:09 AM PDT
The patents issued 6 and 7 years after the iTunes store went into production? Presumably the invention must predate the development and release. It really took 7 years to process the patent?

How about a link to the patents in question?
Reply to this comment
by lusciatti June 3, 2009 10:38 AM PDT
This will probably be the first and last time we hear anything about this. Should go away without any further notice by any of us!
Reply to this comment
by Understarsidream June 3, 2009 10:40 AM PDT
So tokens = dollars? I don't think so. Our patent system is so broken.
Reply to this comment
by The_happy_switcher June 3, 2009 10:44 AM PDT
These are the patents in the lawsuit. Nos. 7,328,189; 7,249,099; 7,177,838; and 7,376,621 . THe 838 patent claims a priority date of Jan 26, 2000. I don't know when iTunes first came out.
Reply to this comment
by scannall--2008 June 3, 2009 10:45 AM PDT
As usual, if you can't innovate then litigate. Another fine example of why 'Loser pays.' is important. And with tech and medicine being so far above the average Joe, it's past time for professional jurors. People with knowledge of the science behind the issues of these lawsuits.
Reply to this comment
by June 3, 2009 11:09 AM PDT
Did I mention that I have a patent on the air you breath!

Stop breathing now or I'll sue!
Reply to this comment
by MacSavers June 3, 2009 11:54 AM PDT
Electronic Tokens, as they have explained it here, have been in use since before the year 2000. For this company to claim a patent on technology already in wide spread use is deplorable. That's like me going and saying I invented the wheel and I want a patent on it so I can sue people.

If this ever finds the light of day in court and isn't thrown out, I'll be physically sick about our patent and judicial system.
Reply to this comment
by pentest June 3, 2009 12:37 PM PDT
Well MS patented an array of pointers and mapping a shorter name to a longer name(ie another pointer), just more evidence to use to completely revamp the patent process.
by The_happy_switcher June 3, 2009 2:04 PM PDT
The USPTO has a huge backlog of pending cases and they are underfunded and undermanned. Shoddy patents will continue to get through. Besides, they have an incentive to allow patents because they collect issue fees and maintenance fees for up to 11 years for those patents.
Reply to this comment
by sharmajunior June 3, 2009 2:54 PM PDT
What was this company waiting for all this time. I guess it got hit by the recession just now.
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