Archive of UserLand's first discussion group, started October 5, 1998.

Amazon patents -- their fault?

Author:Jacob Levy
Posted:3/10/2000; 8:59:36 AM
Topic:Amazon patents -- their fault?
Msg #:15504
Prev/Next:15503 / 15505

One of the important aspects I haven't seen mentioned in all of this is the role VC money plays in the patent wars. A little story might help motivate the discussion: in a previous life, I was part of a team that was trying to get VC money to do a start-up. The VCs made a big deal about having a "non-volatile competitive advantage" (translate: patent!) in what we were doing, to assure that we would have the prospective market to ourselves.

I suspect that's what may have happened at Amazon, and if not there, it's certainly happening every day at dozens of start-ups in the valley. Given the incredibly long time it takes to obtain a patent, I think they probably filed while they were still under the gun with VCs to somehow protect what they were doing. They must have been huddled there in their cold offices (;-) thinking "how the heck can we make these VCs happy -- let's patent something basic to our model". Certainly I don't think they were thinking as far as the discussion has progressed today, to a discussion of what's right and wrong for the Internet economy.

Bottom line: don't blame Amazon for a flawed process that, as much as anyone else in the VC money pit, they were a victim of. I find it truly commendable that Bezos is expressing himself as he does, publicly nearly admitting that they bent to VC wishes and patented something absurd, and somehow got one past the clueless USPTO guys. If you want to hold someone's feet to the fire on this issue, I suggest that perhaps many of the guilty parties for the current ridiculous game everyone is playing can be found on Sand Hill road. This is probably also the reason for the thundering silence on this issue from guys like Stewart Alsop and James Doerr, who are usually quite forthcoming with opinions.. :)



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