Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Friday, March 10, 2000   
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Bezos: Change Patent Rules

In an open letter on the Amazon.com site, CEO Jeff Bezos says he won't give up recently granted patents covering the site's one-click shopping and affiliate program technology. But he called for changes in the duration of U.S. software patents.

     "I now believe it's possible that the current rules governing business method and software patents could end up harming all of us--including Amazon.com and its many shareholders, the folks to whom I have a strong responsibility, not only ethical, but legal and fiduciary as well," Bezos writes. "I strongly doubt whether our giving up our patents would really provide much of a stepping stone to solving the bigger problem."

     Instead, Bezos proposes that business method and software patents be granted shorter life spans than the standard 17 years, suggesting three to five.

     Last October, Amazon sued bookseller Barnes & Noble over its rival's use of a similar one-step purchasing method on bn.com. Amazon won a preliminary federal injunction, forcing Barnes & Noble to disable the function. Then late last month, Amazon received a second patent covering the technology behind its widely copied affiliate marketing program. The second patent triggered an avalanche of criticism in Internet and legal circles.

     Bezos's letter follows a missive posted by technology book publisher Tim O'Reilly on his Web site urging Amazon to give up its patents. In addition, Bezos says he's received thousands of e-mails from people all over the world on the issue.

     "This episode is a fascinating example of the new world, where companies can have conversations with their customers, and customers can have conversations with their companies." Bezos adds. "I've been saying for four years now that, online, the balance of power shifts away from the merchant and toward the customer. This is a good thing."

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