UK dot-coms under threat from US patenting row

The UK's top Internet entrepreneurs are being forced to consider patenting traditional business processes to avoid falling behind US counterparts.

Dot-com directors have this week added their voices to the chorus of disapproval over the patenting of business processes being pioneered in the US. However, while they may disapprove of the trend, they are also being forced to look at patenting their own ideas to protect their businesses.

UK start-ups Beenz.com and ihavemoved.com are among those that this week admitted are considering trying to patent their own business ideas. Although the EU does not currently permit the patenting of business practices, the legislation is under review.

David Anstee, director and co-founder of ihavemoved.com, told Silicon.com: "We feel it's a shame we're being required to protect our position like this in the US. We would prefer to be the pre-eminent service by providing a better service rather than having to enforce patents."

At present, it is only possible to receive a patent for a broad business process in the US, but Anstee said this creates an uneven playing field. "If US companies can stop us from doing business in their markets by the assertion of patents, but European firms can't do the same, European ecommerce is placed at a distinct disadvantage."

Beenz is another company presently filing for a business process patent. Charles Cohen, the company's founder and chief technology officer, said: "People are looking at the US Patent Office and asking whether they've gone far too far with these patents."

Eva Pascoe, joint-MD of Zoom.co.uk, said patenting business process will damage the whole development of ecommerce. "Hopefully sanity will prevail and we will keep this out of Europe. Both industry and the consumer lose if these ridiculous patents are allowed to stand. The only people to make money out of this will be the lawyers," she said.

Pete Flint, head of distribution at Lastminute.com, said the practice could have bad results for European ecommerce, and added it could lead to the end of proper competition between online firms.

The row has been highlighted by high-profile lawsuits involving Amazon.com and US start-up Priceline.com. Amazon has taken out an injunction against Barnes and Noble for infringing its patent on 'one-click' buying. At the same time Priceline.com is taking on the might of Microsoft for its use of 'reverse-bidding' on its Expedia travel Web site.

Currently under consideration in the US are patents covering group buying and frequent buyer reward programmes.