Peerflix acquires US 6,847,938, Method of exchanging goods over the internet

Peerflix acquired US 6,847,938 from mother/inventor Donna Moore, of Danbury, Conn.

The first claim states:

A method for coordinating an exchange of items between individuals over a communications network, said method comprising:

providing, maintaining, and updating a preexisting list of like items being offered for exchange,

wherein the steps of providing, maintaining, and updating are performed by a third party; receiving a first data entry identifying a first offered item being offered for exchange by a first user,

wherein the first data entry comprises the first user's selection of the first offered item from the preexisting list of like items being offered for exchange; receiving first search criteria identifying a first desired item to be received in exchange for the first item by the first user,

wherein the first search criteria is generated by the first user's selection of the first desired item from the preexisting list of like items being offered for exchange; storing the first data entry and the first search criteria in a database component of a central computer system; receiving a second data entry identifying a second offered item being offered for exchange by a second user,

wherein the second data entry comprises the second user's selection of a second offered item from the preexisting list of like items being offered for exchange; receiving second search criteria identifying a second desired item to be received in exchange for the second item by the second user,

wherein the second search criteria comprises the second user's selection of the second desired item from the preexisting list of like items being offered for exchange; searching the database in accordance with the second search criteria and the second data entry; generating a match if the first data entry satisfies the second search criteria and if the second data entry satisfies the first search criteria; informing the second user whether a match has been generated; and storing the second data entry and the second search criteria in the database if no match has been generated.

One notes that this business method claim is hardly a model of clear draftsmanship. The application for the '938 was filed in 1999 and the patent issued January 25, 2005. The '938 patent has been cited by ONE OTHER U.S. patent: 7,024,391, to Kraft Foods Holdings, Inc.

AP reported:

Although it doesn't apply to online retailers or Internet auctions that account for a big chunk of e-commerce, the patent may provide Peerflix with a legal lever to ward off direct competition in DVD trading, as well as stake a claim on other Web sites that broker the trading or sale of everything from event tickets to video games.

While Peerflix hasn't gone to court yet to enforce the patent, the Palo Alto-based company already is rattling its saber.

"There would be no reason to own the patent unless we intended to flex our muscles around it," said Billy McNair, Peerflix's chief executive. McNair, who also is a lawyer, believes the patent will cut a broad swath, particularly as more peer-to-peer networks are formed online to swap goods and services.

"We view this (patent) as an offensive weapon that adds to the value of our enterprise," McNair said.