EBay Files Patent Application for Bitcoin Currency Exchanger

http://www.ecommercebytes.com/C/abblog/blog.pl?/pl/2014/3/1394372710.html

by lelf • 12 years ago

73 28 12 years ago

snitko• 12 years ago

If this patent gets accepted, I think US may never see any Bitcoin exchange except EBay. This is completely stupid. There's nothing fundamentally special about a Bitcoin exchange. Trading engine and all the other parts are, of course, difficult, but hardly a new type of software.

devx• 12 years ago

Prior art still works, right?

sgpl• 12 years ago

Can someone please explain how this is possible/allowed?

Also wouldn't this patent (if granted) be refutable due to prior art, etc?

From the article:

BitMit was the first successful Bitcoin marketplace (well, second if we count Silk Road) and actually launched its service the same month and year of the eBay patent filing.

nolok• 12 years ago

I think/believe you're looking at invalidating it the wrong way.

Patent should be non obvious (I don't remember the exact wording). The prior art for this is not "another bitcoin exchange", its another currency exchange period; adding a new currency to your currency exchange is an obvious step, and should be treated as such.

If the judge act as an idiot and pretend this is new, then you can complain prior art for bitcoin exchange specifically. This way, you don't have to do it again and again and again with the gazillion crypto-currencies out there.

Natsu2• 12 years ago

If common sense applied to patents, we wouldn't be in this mess. No doubt they've added some ridiculous limitations that add trivial "advancements" to what the patent office can find documentation of, but it will cost millions of dollars and a trip to Marshall, TX if you want to fight it out with them.

sean-duffy• 12 years ago

"In order for an invention to be patentable it must be new as defined in the patent law, which provides that an invention cannot be patented if: “(a) the invention was known or used by others in this country, or patented or described in a printed publication in this or a foreign country, before the invention thereof by the applicant for patent,”" [1].

[1] http://www.uspto.gov/patents/resources/general_info_concerni...

cookiecaper• 12 years ago

Note that this is still just an application for a patent. It may get denied (but probably won't).

ChuckMcM2• 12 years ago

Actually I think it will likely be denied. The claims are overly broad.

chrismcb• 12 years ago

How is it possible? Well you can TRY to patent ALMOST anything (except a few things like a perpetual motion machine) That doesn't mean it will be granted.

loceng• 12 years ago

The U.S. recently (last year?) switched to a system where it's first to file, not first to invent - so that basically leaves everything open until someone spends money to patent it.. That's my current understanding anyhow. I can only imagine people who like seeing money spent (e.g. money being spent by default is good for the economy) and lawyers are the ones who pushed that change through.

whoopdedo• 12 years ago

The lawyers had no problem making lots of many with first-to-invent since a patent dispute was a long arduous process of attempting to document the timeline of an invention that frequently ended with a judge having to decide a case where both sides present equally plausible claims. First-to-file gives a hard record of who wins when two people create the same invention in a short period of time.

Neither situation is well suited to software patents because software patents shouldn't exist in the first place.

thinkcomp• 12 years ago

The best way to evaluate a patent application is to look at its claims first. Here's the application in its published form:

https://www.google.com/patents/US20130173416

The claims are on the right on Google Patents and at the end of the official PDF. Independent claims are the most important; dependent claims are only valid if the claims that they depend upon are also valid. Here, claim 1, which is independent, involves a lot of language having to do with digital goods and inventory. Already that's confusing because digital goods don't tend to have inventory; they're digital. Claim 2, which is dependent upon claim 1, gets into digital currencies. The other focus of the patent application relates to combinations of digital goods. I'd expect the examiner to push back on claim 1 to clarify what they're actually talking about and limit it accordingly.

Is there a lot of prior art out there dated before December 29, 2011 (the application's priority date) that could block this applciation from ever going anywhere? Yeah, there is. Will I file some with the USPTO in a few minutes? Yeah, I will.

Meanwhile, keep in mind, patents are inherently confusing because by the time one gets granted it has three numbers already, and that's just in the U.S.: there's the application number, which here is 13/340,494, the publication number (before publication, no one can see the application so it can't yet be considered prior art in others), which here is US20130173416 A1, and the grant or issue number, which right now would be somewhere in the 8 million range were it to be granted. A lot of people and institutions mix these numbers up, including even Westlaw, which calls publications "applications". A publication is a snapshot of an application at a particular point in time.

Anyway, don't freak out. There's worse [actually granted] patents out there. Also, none of this is legal advice and I'm not a lawyer.

Update: I just filed the following potential prior art:

1. http://www.google.com/patents/US20020161692

2. http://techcrunch.com/2011/12/14/gumroad-lets-you-sell-anyth...

3. http://www.wired.com/magazine/2011/11/mf_bitcoin/

bennyg• 12 years ago

Nice research and explanation man! Filing prior art is awesome too.

hgjr• 12 years ago

how do you go about filing prior art with the USPO? Do they have a submission form?

rgbrgb• 12 years ago

Idea: 1-click Bitcoin Currency Exchanger.

Rhian2• 12 years ago

Not a 1-click currency exchange, but the calculator tool I've just co-developed is a neat way to keep track of all your cryptocurrency investments. The fact that competition between the exchanges is wide open is obviously a great thing, so http://www.countmycrypto.com makes it easy to aggregate your total balance (and keep it in local storage) even if your different coins are split over multiple exchanges and offline wallets

QuantumDoja• 12 years ago

Bookmarked! + Nice work!

driverdan• 12 years ago

That's pretty much how all of them work. You put in the amount and value and click submit.

adamnemecek2• 12 years ago

He's joking as Amazon patented 1-click checkout so he's suggesting to put two of these ridiculous patents together to create a super ridiculous patent.

adamnemecek2• 12 years ago

OT but it's been a while since I saw webdesing that looked as 90's as this site.

code_duck• 12 years ago

It looks about 2002-2005 to me.

spikels• 12 years ago

Fuck EBay and the stupid patent system. You should have to actually invent something before you can patent it. This is written so broadly as to encompass almost anything involving exchanging non-physical items of value using networks and computers. Yet this has been going on for decades in financial markets.

EBay Files Patent Application for Bitcoin Currency Exchanger

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