WSJOnline: Granted Injunction in Patent Dispute

Sally Khudairi (
Thu, 2 Dec 1999 23:50:51 -0500 Is Granted an Injunction
In Patent Dispute

A federal district judge in Seattle granted Inc. a preliminary
injunction in a patent dispute, barring rival Inc. from
using a one-click system for online orders.

U.S. District Judge Marsha J. Pechman late Wednesday ordered to stop using its Express Lane service by Saturday. said it would comply with the order and launch a new
service, called Express Checkout, in the next several days so as not to miss
any orders during the crucial holiday shopping season. The company wouldn't
give details on the new service or how it would differ from the current
Express Lane service.

In her ruling, Judge Pechman said could avoid infringing
on's patent "by simply requiring users to take an additional
action to confirm orders placed by using Express Lane." The order bars from using the one-click system while's case
is pending., Seattle, filed suit against on Oct. 20,
claiming that the one-click ordering system infringed on a patent it was
awarded in September. Amazon's one-click system stores a user's billing and
shipping information, so it doesn't have to be re-entered on each visit. In
a statement, founder and Chief Executive Jeff Bezos said the
company had spent "thousands of hours" developing the system before it was
introduced in 1997. said it was "disappointed" in the ruling and expected its
position to be upheld on appeal. "We do not intend to sit back and allow
Amazon to stake a claim upon any technology that is widely used," the New
York-based online bookseller said in a statement.

In 4 p.m. trading Thursday on the Nasdaq Stock Market, Amazon shares rose
$4.0625 to $89.0625. shares fell 37.5 cents to $19.

Write to Scott Thurm at and Rebecca Quick at