DE Technologies Sues Dell: Implications for Universal Shopping

DE Technologies Inc (DE), a small Virginia-based company, has launched a patent infringement suit against Dell Inc over a patent that it claims covers all international e-commerce transactions. The business method patent, entitled "Universal Shopping Center for International Operation" (US 6,460,020), took almost six years to issue after being re-examined by the United States Patent and Trademark Office (PTO) because of the controversy generated when it was first approved. The system disclosed in the patent is said to facilitate "international computer-to computer commercial transactions" by integrating a number of complex functions to handle language and currency differences, as well as taxes, customs duties and shipping costs. DE aims to license the system to multinational companies in exchange for a small percentage of the value of their international sales, but has not yet been successful in that regard. Dell, which allegedly makes more than $50 million a day from online sales to consumers worldwide, is the first company DE has sued under the patent. If DE is successful in enforcing its rights to a global e-commerce system, any company that sells internationally online may be targeted as potential infringers. DE, however, has a number of significant hurdles to pass. Although the patent appears to have been examined extensively during its lengthy prosecution, its validity will again come under close scrutiny if the lawsuit goes forward. While it is settled that business methods can be patented in the United States, critics have commented that the PTO lacks the resources, namely specialized prior art searching facilities, to fully evaluate business method patents. For related news reports, see: http://makeashorterlink.com/?H20022AD9; http://internetweek.com/allStories/showArticle.jhtml?articleID=52500009; or http://online.wsj.com/article/0,,SB109935395065961731,00.html. For more information on DE's patent, see: http://www.detechnologies.com/news.htm. Summary by: Rosa Kim