By Keith Regan E-Commerce Times
02/23/01 8:33 PM PT
Barnesandnoble.com should go ahead and give its
customers the one-click option again. So, for that matter,
should other e-tailers.
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On the business scorecard, it wasn't much of a victory
for Barnesandnoble.com -- and it may only be a fleeting
one at that.
But in reality, the decision to lift the
preliminary injunction against Barnesandnoble.com using
Amazon's 1-Click technology is a victory for
common sense. And if Barnesandnoble.com ultimately
prevails in the case, the decision
will be a win for the entire e-commerce community.
What's at issue at this point is not whether
Barnesandnoble infringes on Amazon's patented
method, known as 1-Click, for rushing shoppers
through the checkout process by using saved information.
It may have done so. What's at issue -- and rightly so --
is whether the 1-Click patent is valid in the first place.
The court did not rule on the patent's validity. However,
by lifting the injunction that
was in place all through the holiday shopping season, the court
is throwing the question back into doubt.
First on the Scene
Amazon's case may be strong. It clearly had 1-Click checkout
first, and applied for and received a U.S. patent.
But is 1-Click the kind of technology meant to be protected by patent law?
I don't think so and here's why, with the advanced warning
that I'm not a technical wizard:
My guess is there are probably many ways to configure a
checkout system that saves information somewhere
and retrieves it as needed to enable regular customers
to hurry through with their shopping cart.
So is 1-Click a novel invention or simply an obvious way to
design the checkout page of an e-commerce
site? If it's the latter, it's going to be up an uphill fight for
Amazon. As well it should be.
Whose Click Is It Anyway?
During the holidays, Barnesandnoble.com customers had to use two clicks
to check out, as the e-tailer changed its site to comply with
the preliminary injunction.
Barnesandnoble.com
hasn't said whether it will use a one-click or a two-click checkout
from now until the case goes to trial later this year.
Doing so could mean increased monetary damages, should they lose.
But Barnesandnoble.com most likely won't lose. By lifting the injunction, the
court indicated that it did not believe that Amazon would ultimately
win the case. So Barnesandnoble.com should go ahead and give its
customers the one-click option again.
So, for that matter,
should other e-tailers. It's a great idea and Amazon had it
first. But that doesn't give the giant e-tailer the right to call
the idea Amazon's alone.
God Bless America
Amazon chief executive officer Jeff Bezos sounded the patriotic freedom
alarm when his company's patent originally came under attack,
saying: "The reason we have a patent system in this
country is to encourage people to take these kind of risks
and make these kind of investments for customers."
But the rewards, Mr. Bezos, have to be commensurate
with the risks. Amazon customers have benefited from the
1-Click checkout, to be sure, but so has Amazon.
By volunteering to provide that
information up front and having it stored indefinitely,
customers have given Amazon a powerful database. It is precisely that database
that Amazon has not hesitated to claim as its own, much to the
chagrin of online privacy groups.
Did Amazon really take enough risks to give it the
right to claim that any other Web merchant's effort to arrive at
a similar one-click system lies in the shadow of those
first attempts, requiring the merchant to pay a financial duty to
move forward? Hardly.
One, Two, Buy Some Shoes
Barnesandnoble.com says that its two-click checkout is
working just fine and that it may
never go back to the one-click-and-out system. It may be too little
too late at this point, anyway, given the way Amazon has
solidified its position in so much of the online retail world.
Still, checking out of an e-tail site with just
one click is not a technology, it's a process. Some companies
aren't in the position of asking customers to voluntarily
give up their information for permanent storage "just in case"
they return. And others don't want the privacy and security headaches.
But those that want to offer their customers the best
possible shopping experience shouldn't be blocked from
doing so just because Amazon arrived there first. The
1-Click patent isn't about a novel technology. No one accuses
Barnesandnoble.com of stealing the blueprints. It's just an idea.
Where would e-commerce be if every idea for making
shopping better were protected by patents and licensing fees?
Yes, innovation might still occur, as Bezos suggests. But who
would be around to enjoy it?
What do you think? Let's talk about it.
Note: The opinions expressed by our columnists are their own and do not necessarily reflect the views of the E-Commerce Times or its management.