Year in review: Patent smack-down
Controversy over software patents threatened to turn the Web upside down in 2003. The biggest set-to pitted one-man Eolas Technologies against mighty Microsoft.
Patents: Lawsuits and threats roil the Web
In a year that California grabbed headlines for its raucous gubernatorial recall election and devastating fires, the state could also claim credit for the patent controversy of the year.
Thanks to a patent owned by the University of California and licensed to one-man spinoff Eolas Technologies, Microsoft was slapped with a $521 million patent infringement judgment that could balloon to more than double that should UC and Eolas continue their string of court victories.
Because the patent covers a technology that has become fundamental to many Web sites--the ability to run external applications such as Macromedia Flash within a browser--Microsoft finds itself surrounded by competitors and former courtroom adversaries that are now offering their help.
As Microsoft prepares to appeal the case, individuals, companies and standards bodies have been dusting off old browsers and operating systems and offering what they believe to be prior art, or technology older than the patent and similar enough to invalidate it. And the World Wide Web Consortium (W3C), which had recently risked alienating Microsoft by severely restricting the use of patented technologies in its recommendations, launched a successful drive to get the U.S. Patent and Trademark Office to conduct a rare reconsideration of the patent itself.
Fellow standards body the Internet Engineering Task Force refused to follow the W3C's lead in restricting the use of patents in its specifications, but in a larger context the W3C was hardly alone in reining in patents. The U.S. Federal Trade Commission drafted new rules for challenging patents, and Europe spent much of the year engaged in a spirited debate over the value of software patents in an attempt to craft a uniform system for its member states. After protests and deliberations that pitted industrialists against scientists and software developers, the European Parliament approved a proposal that displeased critics on both sides. Patent opponents warned it would lead to U.S.-style corporate intellectual property warfare, while patent defenders claimed the restrictions on what could be patented would put Europe on a collision course with the United States
E-commerce had long fallen out of favor as a stock market and media buzzword by New Year's Day 2003. But over the course of the year patents applied for during the e-commerce craze came to fruition: Amazon, Google, Microsoft and others amassed patent after patent for online sales inventions. In the courts, companies including eBay and its PayPal unit sustained, and in some cases settled, e-commerce patent infringement accusations.
The search sector geared up for patent conflict as Google won a patent for its search method, and Yahoo acquired Overture and its sizeable patent portfolio. Streaming media firms eyed warily Acacia Research as it exercised its patents in shutting down a series of pornography Web sites, and San Francisco-based Friskit sued RealNetworks and Listen.com for their streaming services. Early patent skirmishes this year divided the founders of and co-investors in the nascent social networking sites Friendster, Tribe.net and LinkedIn.
For those interested in quantity over controversy, the year's biggest news will come when the players tally up the year's awards. For 2002, IBM laid claim to the biggest haul for the 10th consecutive year.
--Paul Festa
Eolas
Microsoft ordered to pay $521 million
A federal jury awards damages to the University of California and a browser technology company after finding that the software giant infringed a patent.Aug. 11, 2003
Will browser verdict snare others?
A patent-infringement judgment against Microsoft and its IE browser raises speculation over which company in the Web browser market might be the next target of Microsoft's pursuer.Aug. 14, 2003
IE patent endgame detailed
As Microsoft loses a key post-trial motion and prepares for a possible injunction, details emerge about its plans to tweak the browser, and the company offers Web authors some advice.Sept. 11, 2003
Eolas suit may spark HTML changes
As anxiety builds throughout the Web over the patent threatening Microsoft's browser, the Web's leading standards group is considering modifying HTML to address the same threat.Sept. 19, 2003
Eolas case shakes up software rivalries
Silicon Valley companies are used to thinking of mighty Microsoft as the enemy, but a patent suit that may place a crushing burden on the Web has many of them siding with the software giant on this one.Sept. 25, 2003
Microsoft tweaks Explorer to address ruling
The software maker moves ahead with what it calls "modest changes" to its Internet browser as a result of the patent suit brought against it by Eolas Technologies.Oct. 7, 2003date
Web patent critics spotlight old technology
The Web community hunts desperately for evidence of "prior art" to thwart Eolas' patent suit against Microsoft.Oct. 31, 2003
Patent office to re-examine Eolas patent
The U.S. Patent and Trademark Office agrees to re-examine the Eolas patent for a browser plug-in, a development likely to bring cheer to Microsoft and software patent foes alike.Nov. 11, 2003
Patent policy
Standards group beats back patent foes
An attempt to persuade the Internet Engineering Task Force, a key Internet standards body, to abandon its use of patented technologies has ended in defeat.April 10, 2003
Scientists protest EU software patents
A petition signed by senior European scientists says a proposal to introduce pan-European software patents would threaten small developers by creating a U.S.-style system.April 28, 2003
W3C makes patent ban final
Patent foes applaud the Web standards group's policy--which prohibits the use of most royalty-bearing technology in setting standards--but warn against "submarine patents."May 21, 2003
Developers gather to protest patents
In Brussels, hundreds of demonstrators gather to march--and mime--against a proposed directive they say could disrupt Europe's software industry.Aug. 28, 2003
EU directive could spark patent war
Merits aside, the European Union's proposed directive on software patents could lead to chaos, because it's out of step with U.S. laws, analysts say.Oct. 3, 2003
Patent overhaul gets a boost
Warning that patents of dubious legitimacy can slow innovation and stifle competition, the head of the Federal Trade Commission recommends new procedures for challenging patents.Oct. 30, 2003
E-commerce
Amazon makes bid for Web-ad patent
The online retailer files a patent on a method for auctioning Web advertisements, a move that raises questions about the company's interest in the ad market.March 24, 2003
Jury: eBay guilty of patent infringement
A federal jury rules that eBay infringed on two patents and orders the online auctioneer to pay $35 million in damages.May 27, 2003
Yahoo settles patent dispute
The portal giant is licensing technology from computer services company NCR as part of a settlement that ends a patent dispute between the two companies.July 29, 2003
Microsoft pockets an IM patent
The software giant wins a patent for an instant messaging feature that notifies users when the person they are communicating with is typing a message.Oct. 7, 2003
Patents: Lawsuits and threats roil the Web
In a year that California grabbed headlines for its raucous gubernatorial recall election and devastating fires, the state could also claim credit for the patent controversy of the year.
Thanks to a patent owned by the University of California and licensed to one-man spinoff Eolas Technologies, Microsoft was slapped with a $521 million patent infringement judgment that could balloon to more than double that should UC and Eolas continue their string of court victories.
Because the patent covers a technology that has become fundamental to many Web sites--the ability to run external applications such as Macromedia Flash within a browser--Microsoft finds itself surrounded by competitors and former courtroom adversaries that are now offering their help.
As Microsoft prepares to appeal the case, individuals, companies and standards bodies have been dusting off old browsers and operating systems and offering what they believe to be prior art, or technology older than the patent and similar enough to invalidate it. And the World Wide Web Consortium (W3C), which had recently risked alienating Microsoft by severely restricting the use of patented technologies in its recommendations, launched a successful drive to get the U.S. Patent and Trademark Office to conduct a rare reconsideration of the patent itself.
Fellow standards body the Internet Engineering Task Force refused to follow the W3C's lead in restricting the use of patents in its specifications, but in a larger context the W3C was hardly alone in reining in patents. The U.S. Federal Trade Commission drafted new rules for challenging patents, and Europe spent much of the year engaged in a spirited debate over the value of software patents in an attempt to craft a uniform system for its member states. After protests and deliberations that pitted industrialists against scientists and software developers, the European Parliament approved a proposal that displeased critics on both sides. Patent opponents warned it would lead to U.S.-style corporate intellectual property warfare, while patent defenders claimed the restrictions on what could be patented would put Europe on a collision course with the United States
E-commerce had long fallen out of favor as a stock market and media buzzword by New Year's Day 2003. But over the course of the year patents applied for during the e-commerce craze came to fruition: Amazon, Google, Microsoft and others amassed patent after patent for online sales inventions. In the courts, companies including eBay and its PayPal unit sustained, and in some cases settled, e-commerce patent infringement accusations.
The search sector geared up for patent conflict as Google won a patent for its search method, and Yahoo acquired Overture and its sizeable patent portfolio. Streaming media firms eyed warily Acacia Research as it exercised its patents in shutting down a series of pornography Web sites, and San Francisco-based Friskit sued RealNetworks and Listen.com for their streaming services. Early patent skirmishes this year divided the founders of and co-investors in the nascent social networking sites Friendster, Tribe.net and LinkedIn.
For those interested in quantity over controversy, the year's biggest news will come when the players tally up the year's awards. For 2002, IBM laid claim to the biggest haul for the 10th consecutive year.
--Paul Festa
Eolas
Microsoft ordered to pay $521 million
A federal jury awards damages to the University of California and a browser technology company after finding that the software giant infringed a patent.Aug. 11, 2003
Will browser verdict snare others?
A patent-infringement judgment against Microsoft and its IE browser raises speculation over which company in the Web browser market might be the next target of Microsoft's pursuer.Aug. 14, 2003
IE patent endgame detailed
As Microsoft loses a key post-trial motion and prepares for a possible injunction, details emerge about its plans to tweak the browser, and the company offers Web authors some advice.Sept. 11, 2003
Eolas suit may spark HTML changes
As anxiety builds throughout the Web over the patent threatening Microsoft's browser, the Web's leading standards group is considering modifying HTML to address the same threat.Sept. 19, 2003
Eolas case shakes up software rivalries
Silicon Valley companies are used to thinking of mighty Microsoft as the enemy, but a patent suit that may place a crushing burden on the Web has many of them siding with the software giant on this one.Sept. 25, 2003
Microsoft tweaks Explorer to address ruling
The software maker moves ahead with what it calls "modest changes" to its Internet browser as a result of the patent suit brought against it by Eolas Technologies.Oct. 7, 2003date
Web patent critics spotlight old technology
The Web community hunts desperately for evidence of "prior art" to thwart Eolas' patent suit against Microsoft.Oct. 31, 2003
Patent office to re-examine Eolas patent
The U.S. Patent and Trademark Office agrees to re-examine the Eolas patent for a browser plug-in, a development likely to bring cheer to Microsoft and software patent foes alike.Nov. 11, 2003
Patent policy
Standards group beats back patent foes
An attempt to persuade the Internet Engineering Task Force, a key Internet standards body, to abandon its use of patented technologies has ended in defeat.April 10, 2003
Scientists protest EU software patents
A petition signed by senior European scientists says a proposal to introduce pan-European software patents would threaten small developers by creating a U.S.-style system.April 28, 2003
W3C makes patent ban final
Patent foes applaud the Web standards group's policy--which prohibits the use of most royalty-bearing technology in setting standards--but warn against "submarine patents."May 21, 2003
Developers gather to protest patents
In Brussels, hundreds of demonstrators gather to march--and mime--against a proposed directive they say could disrupt Europe's software industry.Aug. 28, 2003
EU directive could spark patent war
Merits aside, the European Union's proposed directive on software patents could lead to chaos, because it's out of step with U.S. laws, analysts say.Oct. 3, 2003
Patent overhaul gets a boost
Warning that patents of dubious legitimacy can slow innovation and stifle competition, the head of the Federal Trade Commission recommends new procedures for challenging patents.Oct. 30, 2003
E-commerce
Amazon makes bid for Web-ad patent
The online retailer files a patent on a method for auctioning Web advertisements, a move that raises questions about the company's interest in the ad market.March 24, 2003
Jury: eBay guilty of patent infringement
A federal jury rules that eBay infringed on two patents and orders the online auctioneer to pay $35 million in damages.May 27, 2003
Yahoo settles patent dispute
The portal giant is licensing technology from computer services company NCR as part of a settlement that ends a patent dispute between the two companies.July 29, 2003
Microsoft pockets an IM patent
The software giant wins a patent for an instant messaging feature that notifies users when the person they are communicating with is typing a message.Oct. 7, 2003