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 Google uphold its commitment to 'Freedom of Expression' when it comes to organic adult search results?
Yes
  32.09%
No
  67.91%
Out of 187 votes. Results based on votes submitted by members of XBIZ.net social network.
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 !

BUSINESS ANALYSIS

Consumers Embracing BDSM, Fetish Products Like Never Before

By all accounts, consumer interest in BDSM has grown in recent years, a trend that some observers of the market attribute to the popularity of the “50 Shades of Grey” trilogy. Whatever its... More »

White Labels Turn Gray

White labels are evolving as marketers continue to refine their use is leading to some interesting new developments in the dating niche. For the uninitiated, the dating site white label phenomena started... More »

Playing for Keeps: Future of the Fetish/BDSM Market

It doesn’t take a degree to figure it out, but Dr. Clockwork is happy to remind everyone that BDSM and fetish consumers are a very unique market. “They’re a very discerning group of... 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 Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

Sexpo

Aug 01 - Aug 03
Sydney, Australia

QWEBEC Expo Montreal

Aug 15 - Aug 17
Montreal, Canada

Asia Adult Expo

Aug 28 - Aug 30
Macau, China

CatalystCon West

Sep 11 - Sep 14
Los Angeles, California
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!