RealTime IT News

Apple Takes a Bite of Amazon.com

When The Apple Online Store opened its virtual doors on Monday, shoppers were privy to the company's new licensing agreement with amazon.com.

Apple and Amazon.com have forged an e-commerce cross-licensing agreement in which Apple has implemented Amazon.com's 1-Click patent and trademark. All items in the Apple store can be purchased using this technology.

The technology securely stores billing and shipping information so that returning customers do not need to re-enter information.

In an open letter on his company's Web site, Jeff Bezos, president of Amazon.com, notes that the technology has been called to the table, with some critics calling for the company to drop its patent on the 1-Click unilaterally. "I've read several hundred email messages on the subject of our 1-Click technology," he wrote. "Ninety-nine percent of them were polite and helpful. To the other one percent, thanks for the passion and color!

"Despite the call from many thoughtful folks for us to give up our patents, I don't believe it will be right for us to do so. This is my belief even though the vast majority of our competitive advantage will continue to come not from patents, but from raising the bar on things like service, price and selection and we will continue to raise that bar. Unlike with trademark law, where you must continuously enforce your trademark or risk losing it, patent law allows you to enforce a ptent on a case-by-case basis, only when there are important issues for doing so. I doubt if giving up our patents would really, in the end, provide much a stepping stone to solving a bigger problem."

In related news, Apple announced it has launched its iMovie 2 video-editing software, which is available via i-Click downloading at its online store. According to Apple, combining 1-Click downloading with 1-Click shopping is an industry first.

"Licensing Amazon's 1-Click patent and trademark will allow us to offer our customers an even easier and faster online experience," said Steve Jobs, Apple CEO.