Rich Fiscus
28 Oct 2007 0:22
Refined Reccomendation Corporation has filed a lawsuit against Netflix claiming that the internet DVD rental service is infringing on a patent for "Optimizing interest potential." Essentially what that means is that the patent covers any system that categorizes items, tracks user interest based on those categories, and makes suggestions based on that analysis.
The patent can be boiled down to a single drawing on file with the patent office. The drawing clearly shows that categories can be either very broad or very detailed; something that attorneys will no doubt point out is hardly innovative if this makes it to trial. In fact it's highly unlikely a single etailer has ever consulted this patent before coming to the conclusion that they might be able to make recommendations for customers. Certainly the brick and mortar retailers who came up with similar ideas before the a single online sale was ever made.
There have already been a number of high profile lawsuits by what have come to be known in some circles as patent trolls; companies whose sole revenue source is patent royalties - often from questionable patents. Not surprisingly these companies are some of the most vocal opponents of the patent reform bills being considered in the U.S. Congress. However, the result of this case could have serious implications for internet commerce as one of the key components of online shopping services could suddenly become much more expensive to operate.
Many ecommerce sites that offer suggestions to customers will be watching with a lot of interest If Netflix doesn't put up a fight in court there will almost certainly be more suits filed.
You can find all the filings in this case, including the patent documents, at Justia.com.