Home > News > Big Tech Firms in Uproar Over Patent Sale • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Big Tech Firms in Uproar Over Patent Sale

Big Tech Firms in Uproar Over Patent Sale
Get XBIZ News
XBIZ Research
Will virtual reality headsets like the Oculus Rift revolutionize adult entertainment?
Yes
  51.22%
No
  48.78%
Out of 82 votes. Results based on votes submitted by members of XBIZ.net social network.
XBIZ 360 - Jan. 13-16, Los Angeles
Thursday, Nov 25, 2004    Text size: 
SANTA CLARA, Calif. – On the heels of Commerce One's announcement last week that it plans to auction off approximately 39 patents as part of a bankruptcy settlement, some of Silicon Valley's biggest players like IBM, Google and Oracle are up in arms over the potentially detrimental effect the sale could have on the future of web services.

On Nov. 17, the software maker and business solutions provider, which has struggled financially for years, revealed plans to sell off its business operations, including a patent portfolio consisting of seven issued U.S. patents and 30 U.S. patent applications.

Those patents cover the underlying process of web services, including standardized electronic documents to automate the sale of goods and services over the Internet and business interfaces that can seamlessly travel among diverse networks and diverse applications and languages.

Commerce One and its wholly owned subsidiary Commerce One Operations filed voluntary petitions in October for relief under Chapter 11. The company was delisted from the Nasdaq in September.

Commerce One launched nine years ago, but started losing money when it went public in 1999, regardless of its rapid acquisition of valuable patents that currently play a crucial role in many software and business products owned by some the world's largest tech companies.

The concern over the patent auction is that if they fall into the hands of an outside company, they could be used to exploit those companies that are using Commerce One's web services technology.

At greatest risk are web services like Microsoft's .Net business system and IBM's Websphere.

Current estimates predict the web services market will grow at a pace of 52 percent each year until 2008, and in keeping with those predictions, Silicon Valley's most influential companies have made substantial investments in gaining web services market share by building Commerce One's technology into their software and business products.

At present, Google, Microsoft, IBM, Oracle and Sun Microsystems are among a group of concerned companies that have banded together to pool resources and funds to make the winning bid when the Commerce One auction date rolls around on Dec. 6.

The group of web services heavyweights have chosen a company called CommerceNet to manage their cumulative fundraising and patent bids.

According to reports, if CommerceNet wins the patents, they will never be enforced against the technology giants. However, if the bid is lost, there is grave concern that an outside company could effectively hold the entire web services industry in limbo over licensing fees.

CommerceNet, which is based in Mountain View, Calif., is seeking initial contributions of up to $2 million from each from five to 10 companies.

ICMB Ocean Tomo has been retained by Commerce One as its strategic advisor in connection with the auctions. According to John Amster from Ocean Tomo, bids on Commerce One's patents and applications must be submitted in writing by Dec. 2 and must provide for an all-cash purchase price of at least $1,000,000.

Additionally, bids on the Commerce One's business operations, including its SRM Division, also must be submitted by Dec. 2 and provide for an all-cash purchase price of at least $4.3 million.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

EDUCATIONAL FEATURES

Europe: No Adult Webcam Slow Down Here

Europe has a long history of being a major contributor to adult entertainment, and in recent years, one sector of the European adult industry that has experienced considerable growth is the live webcam... More »

The Dangers of Over-Sharing on the Retail Floor

Which of these do you like?” “Have you ever tried this one?” “What’s your favorite product?” If you’ve spent any time on the sales floor, you’ve probably... More »

Retail Tactics: The Wow Factor

Setting sales goals can greatly increase the bottom line in your business. Taking the time to explain the advantages in purchasing items that give you more bang for your buck help increase sales dramatically.... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

Dutch Webmaster Meeting

Dec 13 - Dec 13
Amsterdam, Holland

ANME Show

Jan 12 - Jan 13
Burbank, California

XBIZ 360

Jan 13 - Jan 16
Los Angeles, CA

XBIZ Awards

Jan 15 - Jan 15
Los Angeles, CA
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!