Barnes & Noble hit with suit over Nook

A Silicon Valley start-up said it sued Barnes & Noble on Monday, claiming that the bookseller misappropriated trade secrets in creating the Nook e-reader.

Cupertino, Calif-based Spring Design said it had a nondisclosure agreement with Barnes & Noble and had been discussing its e-reader plans with the bookseller since early this year.

"Since the beginning of 2009 Spring and Barnes & Noble worked within a non-disclosure agreement, including many meetings, emails and conference calls with executives ranging up to the president of BarnesandNoble.com, discussing confidential information regarding the features, functionality and capabilities of Alex," Spring Design said in a statement. "Throughout, Barnes & Noble's marketing and technical executives extolled Alex's 'innovative' features, never mentioning their use of those features until the public disclosure of the Nook."

The press release from Spring Design did not say in what court the suit was filed, or mention what damages were being sought.

Spring Design announced its Alex e-reader just days before Barnes & Noble formally unveiled the Nook. Both e-readers use the Android operating system and combine an e-ink screen with a color touch screen.

Eric Kmiec, Spring Design's vice president of sales and marketing, said that the company has been working on the Alex since 2006.

"Spring Design unfortunately had to take the appropriate action to protect its intellectual property rights," Kmiec said in a statement. "We showed the Alex e-book design to Barnes & Noble in good faith with the intention of working together to provide a superior dual screen e-book to the market."

A Barnes & Noble representative was not immediately available to comment. (Update, 9:30 a.m. Nov. 3: A Barnes & Noble representative said that the company does not comment on litigation.)

Barnes & Noble's Nook, which competes head-on with Amazon's Kindle, is due to go on sale later this month for $259.

Here's a look at the Alex:

(Credit: Spring Design)

as compared to the Nook:

(Credit: Barnes & Noble)

Note: This story originally misstated the day that the lawsuit was filed. It was filed on Monday.

[MyRightEye]

Oops, yeah, that's a wee bit obvious...

[jd_in_sb]

If the Nook is being released in November then B&N developed the Nook long before they had discussions with the creators of Alex.

[zyxxy]

Under non-disclosure, they were obligated to reveal how their design overlapped, to avoid this very situation. If in fact the design already existed. It will now be up to the courts to decide. Do not think for one minute that the large corporations are always right in these matters. That is why we have a court system, to answer these kinds of charges.

[Cheese McBeese]

B&N can get to market a lot faster than a start-up. If B&N don't have proof that they were well along before the NDA with Spring Design, then B&N should be spanked. In any case, B&N likely tainted themselves without even understanding what that means.

[freemarket--2008]

It doesn't matter who gets to market first. If the layout was patented, and the patent is valid, the patent holder wins. Of course, he may win by going broke defending the patent, but that's another issue...

[paulej]

Oh, but a patent does not even have to be filed in this case. Prior to disclosure to the public, this was a trade secret and protected under US law. If B&N did, indeed, use ideas shared by Spring under NDA, they're in trouble. How much trouble? Well, sadly likely not very much. It's far cheaper for them to pick the brains of people and pay for the lawsuit than to do the honest thing of acquiring the technoloy through licensing or purchasing.

[dj_atomic2010]

Well proof will be the key just because you show someone some thing does not mean they did not already have something in the works already! The Alex looks like remote I had back in the early 90s and the Nook is clean looking well though out for B&N's needs shows covers in color just like a book and black and white pages, and looks like it is the kind of e book reader B&N would want to sell to there clients a iPhone look not a brick look! If I had to pick just by looking at them I would pick the Nook. Spring Design should have put more though in to looks in to it's design when this is a world where looks matter!

[dj_atomic2010]

Oh yah but I think if you want a e book reader get a $399 laptop and do more then just read for your money!

[freemarket--2008]

Do you sell laptops or something? Give it a rest.

[ddesy]

Except for one problem... these readers have screens that are easier to read in more environments. As a result, they create less eye strain!

[JoeF2]

If your $399 laptop has an e-ink screen, sure...
It is obvious that you have never seen the e-ink display of these book readers.

[alexacker]

@ freemarket.

So, someone who poses an alternative POV to yours must be really selling that product and pushing it here? I am anti-book reader myself and would rather use my iPhone, MacBook, or go old-school and read books.

So that means: I am an iPhone, laptop and book seller according to your logic. Or better yet: dumb logic.

[john94857]

It would seem then that even though Nook is cool, or cooler than Kindle, there is some danger in getting it and end up not being able to use it if things don't go well for BN.

Perhaps Kindle is still a more mature and proven choice, at least for now.

I was really hoping for Nook to take off though, and still hope that's the case. After all, the reason I hesitate to get a Kindle is due to the closed eco-system of the Kindle system, which makes Amazon the gatekeeper in that case. I hope that is not the case with B&N's ebook.

The irony is that Amazon does have an awesome MP3 store that is DRM-free with a large selection and often good prices. Yet that is a completely open format, which is preferrable.

On the note about Amazon, I recently came across an interesting table that details the discounts on Amazon.

It is at http://www.uberi.com

Maybe someone will find it useful too. While you are there, I would suggest checking out the "Amazon Filler Item" among other things there when you get a chance. It's quite amusing.

[svgtom]

The Kindle isn't as closed as most people think in the sense that you can read any public domain book on the Kindle in addition to what Amazon sells. There are plenty of websites where public domain books are available. Also with the Kindle, you can read a book on up to six devices at a time (Kindles, Iphones, and the soon to be released PC reader) provided they are all registered under the same account. While the Nook certainly looks like a worthy alternative to the Kindle, I would hold off getting one until the first reviews and user opinions start coming in.

[JoeF2]

@svgtom

The main issue with the Kindle is that it has a remote kill switch. Amazon made the mistake of not removing the kill switch. Instead of getting a Kindle, I ordered a B&N Nook.

[svgtom]

JoeF2, and there's no guarantee that the Nook won't have it either. B&N's restrictions on lending are enough to make me suspicious of them (i.e. you can only lend a book once, the lender cannot read the book while it's being lended, and a book can only be lent for 14 days).

[corelogik]

I agree with the idea of just buying a Laptop or Netbook and doing more. I personally don't have or see any use for just an e-book reader.

[veronicacburgess]

Amazon is doing what others haven't yet and that's to offer the Kindle reader software on other formats like the iPhone and computers. So that makes things easier because I don't have to necessarily have a dedicated e-reader.

[hafenbrack]

That's only because they have DRM'd the crap out of their kindle books. The e-pub format and PDF format that are used by the Sony readers are easily read on ANY computer, because the software to do so is easily and FREELY available to everyone. Amazon isn't a white knight here, they are trying to do waht Apple did with iTunes early on, DRM it first, then when everyone realizes how bad that is, then they'll rethink it.

[saracen25]

The B&N eReader has been available for quite a while on the Blackberry and the iphone and touch. On top of that the B&N eReader was available for install on a PC or Mac before Amazon made the Kindle software available for them.

I also find the Kindle reader on my iphone and PCs to be lacking compared to the B&N offering.

Also, unlike Amazon, B&N has agreed to support more open formats rather then the DRM-packed books that Amazon offers right now.

[MarkinStLouis]

What saracen25 said. Plus, the format that B&N uses (.pdb) is used by ereader.com and fictionwise.com (both of which are also now owned by B&N). I've been buying books from ereader.com since '02, and love the idea of being able to read these on my Nook when (or if) I get it.

[TogetherinParis]

Intellectual property theft should be a criminal offense and violators should be punished according to the seriousness of the offense. From the Alex complaint, this looks like a capital rape case. Barnes and Nobel, book sellers without technical expertise of their own, obviously just turned over the Alex concepts to a Chinese manufacturer. So what is fair punishment for Barnes and Nobel?
Well, Alex should get all the assets of Barnes and Nobel in an eye for an eye world. All Alex assets were in their reader, after all, and now they have to go to trial? The executives of Barnes and Nobel should do jail time for this, several years each I should think. Then they should never be allowed to run any business in the USA forever. Being a businessman requires honesty and trustworthiness, criminals have no place in American commerce and should be expelled.

[cp256]

"Being a businessman requires honesty and trustworthiness, criminals have no place in American commerce and should be expelled."

While I very much agree that criminals in American commerce should be expelled, it often seems as if honesty and trustworthiness are the exception rather than the rule. Greed drives far too many business decisions and the bigger the business the more greed they seem to have.

[rdupuy11]

The U.S. already puts more of its own people in jail, than any other country in the entire world.

This absolutely need not be a criminal offense. We should be doing the opposite looking for effective means to control issues, and not simply having knee jerk responses.

The reality is, there are going to be disagreemens that are subtle in nature, and the court will decide.

Believe me, IF, B&N is in the wrong, losing a lawsuit, is punishment. It will cost them a lot of money, and that is an effective deterrent. It doesn't mean it won't happen -- mistakes, incompetence, no idea what they are doing, remember B&N is a very old bookseller, but only a very new, tech player.

[techno777]

This sounds very extreme and self-righteous. It has a preconceived conclusion ahead of the facts.There seems to be no consideration for gray areas, for which patent issues are notorious.

[grengar]

The big key here is how the agreement was written. I'm sure it must be fairly lock tight or no one would have filed suit. Most non disclosures are no where near as legaly binding as a copywrite or patent. In fact if B&N was smart and tried to patent any of these ideas then this case could get flipped very quickly.

[bicparker]

Actually, NDA's are pretty serious agreements that can be very binding, because, unlike patents or copyrights, they are specific agreements between specific entities over specific areas of knowledge that can go well beyond the scope of patent infringement. So the consequences of violating an NDA go directly to the terms of that agreement, which can be quite significant.

If B&N tried to patent IP through a broken end run on an NDA, they could face some serious criminal consequences. I'm guessing that even if Spring Designs used a boilerplate NDA, it had some very strict terms and restrictions.

NDA's shouldn't be taken for granted. They are the backbone of how a lot of companies share data and work together in the normal course of business. If they were legally weak and not to be relied upon, then a lot of companies would be out of business (such as joint ventures, service providers, and the people who take the trash out).

[J_Jordan_D]

It'll be up to the courts to decided who's right and who's not. I'm not sure about the strategy here. If Alex wins a stay against the sale of Nook in November, then Kindle wins more market share and idk, it may be a phirric victory for Alex. Not sure what kind of tradesecrets Alex is referring to, it'll be interesting to find out.

Jordan
http://ereaderQuestions.com

[molotov]

Of course Nook will be shut down. Amazon is behind all of this. This is just another reminder that no one should seriously mess with the webs largers e-tailer. Same goes for Apple, GS and Trojan.

[pcraine]

"Amazon is behind all of this."

That's a pretty serious charge. Got any proof?

[adeelf]

Perhaps you think that sprouting conspiracy theories makes you a 'free-thinker' or shows that you think outside the box. I assure, that's not the case.

You're basically in the same camp as people who claim the US government created and spread the HIV virus to eradicate the homsexuals.

[molotov]

Poor adeelf, Edmund White in his autobiography - City Boy explains exactly how the AIDS have come to affect the gay community - it seems its the life-style not the government that caused such a devastating infection rates. Anyway moving on

[adeelf]

Who knows whether the Nook violated any agreement or not. On the surface, the similarity in the two concepts seems mighty suspicious.

From a design front, however, I have to say B&N did a far better job than Spring Design. The 'Alex' looks a bit awkward, but the Nook manages to put the 2-portions of the screen in a very smooth manner that looks very neat and clean. We'll have to see how well the device actually functions, but from an appearance perspective, the Nook is easily the best-looking e-reader on the market, comfortably beating the Kindle and Sony's unimaginatively named 'Sony Reader' touch-screen device.

[alexacker]

I saw a guy with the supersized kindle yesterday and he looked ridiculous with it. No e-Book reader for me ever... kindle, nook or alex. I'll keep it old-school with paper or use my laptop or iPhone. Atleast that way I can multitask.

[darkguardian]

I have a netbook but finally bought the Kindle 2 last week and happy I did. With a mobi converter, I could at my pdf files the e-book and do simple internet look ups with it free of charge. It can hold mp3 audio but you got iphones for that. I got it because my job doesn't allow personal laptops and lugging books around is an increasing chore. Now my coworkers want an ebook for themselves. My job has no problem with a Kindle in the workplace. It can even read to you if you're tired. Instant download is great too. I even got a custom skin for it to make it more personal. Just with it can do pdf files better. I only need one hand to operate it and the built in dictionary is a must have.

[maneeshpan]

The Amazon KIndle is a Swindle - thanks to its kill switch feature and DRM Amazon places on Kindle books they should not even have the power to delete purchased Kindle -books off of Kindle readers.

I have my concerns with the Barnes & Noble Nook as well -- don't want any e-reader with DRM -- will wait for DRM free e-books or just stick with good old fashioned paperback and hardcover books.

Barnes & Noble nor Amazon can ever take away my paperback and hardcover books I ever bought from either business. Thanks to DRM in their e-readers and e-books though they can. As to the suit over Nook using the Alex e-reader's technology without permission it is wrong if Barnes & Noble did what it did without a license etc from the developer of the Alex e-reader. Frankly, if I had to choose bertween thw Alex or the Nook visually I like the Nook better.

As I said though am going to avoid e-books for now due to DRM issues. Support the student movement for free culture!

List of websites and causes to support.

Electronic Frontier Foundation (ACLU for the Internet) www.eff.org
Downhill Battle -- Music Activism www.downhillbattle.org
Free Press -- force for media reform www.freepress.net
Defective By Design -- Free Software Foundation led movement against DRM. www.defectivebydesign.org
Free Culture -- Student movement for free culture www.freeculture.org
Participatory Culture Foundation (by Downhill Battle guys) www.participatoryculture.org