Major Loyalty Affiliates Hit With Patent Infringement Lawsuit

January 31, 2008 Filed under: Affiliate Marketing, Legal Issues — Kellie AFP @ 9:47 pm

It seems that a lawsuit was filed in Texas Eastern District Court on January 23, 2007 by Source Inc. alleging patent infringement related to a “Centralized Consumer Cash Value Accumulation System for Multiple Merchants”. Translation: loyalty/rebate system. Source Inc is saying they have the patent of others doing loyalty/rebate systems are infringing on their patent.

Listed as defendants in the suit are:

Access Development Corporation
bCorner.com, Inc.
Belcaro Group, Inc. (ShopAtHome)
Big Co-Op, Inc.
Intefral Technologies, Inc.
77BlueLLC (David Lewis)
Ebates Shopping.com, Inc.
Electronic Scrip Incorporated
The Ezshoppen Company
FatWallet.com, Inc. (Tim Storm)
iGive.com Holdings, LLC,
JellyFish, Inc. (recently purchased by M$)
Jet Set Joe Corporation
Little Grad, Inc.
MBC Direct, LLC
Mall Networks, Inc.
Misermart.com, Inc.
Mezl Media, Inc. (owned by ValueClick)
Mothers Work, Inc.
OC Rebates
Pinnacle Communications International, Inc.
Qdeals, Inc.
QuickRewards Network, Inc.
Shop.com
Simplicity Group, LLC
Spree.com Corporation
Tricordia, LLC
Tuition Fund, LLC
Webloyalty.com, Inc.
Zions First National Bank
Alliance Card, Inc.
Family Network, Inc.
JPMorgan Chase & Co.
Golden Retriver Systems, LLC
Summit State Bank
Nietech Corporation
U.S. Bancorp
U.S. Bank

I’m sure many will recognize several of the thirty-eight defendents on that list. Source Inc may not be done with the list of defendents yet as there is mention of “similar programs whose identities are not yet known”.

Source Inc is also seeking an injunction against each defendent.

Ok, so patent cases are filed, won and lost every day. But “wow” was my initial reaction.

I’m not sure if they are naming any loyalty/rebate program which tracks across multiple merchants or just ones with certain technology or what.

I haven’t read through the patents yet, but this is certainly going to be interesting.

References:
The SouthEast Texas Record (the content on this page may change. Scroll down to Source Inc vs Access Development Corp. et al)
Justia
US Patent Office Search Returns

18 Comments »

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  3. Looks like the PTO rubber stamped another trivial patent application. Even if these companies aren’t found to be violating the patent it will cost them thousands - (if not more) - to deal with this mess. Very sad…

    Comment by Jeremy Palmer — March 4, 2008 @ 5:46 pm

  4. Companies should definitely have the right to protect their work. But the PTO is somewhat of a..err..mess? And patent law is worse than tax law. This one does seem sad to me for the exact reasons you say Jeremy.

    CompareRewards had a bit more info about these suits. Seems this isn’t the first time Source Inc has done this. I was wondering why some notable companies weren’t on the list, like UPromise. Source Inc already played with them in 2004.

    Comment by Kellie AFP — March 4, 2008 @ 9:11 pm

  5. Wonder if that applies to Lindens (fiat money) :)

    Thanks…interesting. :)

    -wayne

    Comment by Wayne Porter — March 8, 2008 @ 2:03 am

  6. so far the best affiliate program for me is Amazon Affiliate. they have high tier rates and great payout “,*

    Comment by L-Lysine %0A — December 4, 2010 @ 12:27 am

  7. It is obvious that the PTO examiners are no match for the lawyers who draw up these patents. If the examiners were doing their jobs, they would refuse all of these patents based on these issues. I also want to point out that one major patent holder in this area had one of their ex-employees working at the PTO office when their patent was rewritten to cover more ground of their competitors or potential competitors:

    1) Coupons and Rebates have been totally branded as ‘held in common by buyers and sellers’. Any patent that builds on ‘coupons and rebates’ should be disallowed as not novel. Find the person or persons who started coupons and rebates and make these sue happy patent holders pay them billions in past due fees.

    2. Catalina Marketing has the original online patent for coupons and rebates with its ‘log-in patent’. And then, when one combines their patent with Amazon’s ‘one click patent’, that pretty much covers the core of all online affiliated patents. Kudos to Catalina for not bending everybody over with their patents, and kudos to those who noticed that this lawsuit leaves out the most profitable similar companies.

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