Amazon gets patent for affiliates program

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13 October 2000 03:00 PM
Tags: amazon, patent, affiliate, barnes, retailer

Online retailer Amazon.com said it has received a patent for its affiliates program, which allows owners of other Web sites to refer customers to Amazon in exchange for a fee.

Affiliates programs are commonly used by other Internet merchants, including Amazon's competitors. That Amazon owns the patent to the process could cause another shake-up in the e-commerce industry if the patent is enforceable.

In September, Amazon was awarded a patent for its "1-Click" service that allows customers to shop without entering their shipping and billing information every time they buy. A month later, the company filed a patent-infringement suit against Barnes & Noble.com alleging that Barnes & Noble.com is "willfully infringing" on Amazon's 1-Click ordering system. In December, a federal district judge in Seattle granted Amazon a preliminary injunction, barring Barnes & Noble.com from using a one-click system for online orders.

A company spokeswoman said Amazon applied for the patent for the affiliates program on 27 June 1997, in an effort to "protect our innovative proprietary technology." In an affiliates venture, owners of Web sites can list items from an online retailer's catalog on their sites and link to the retailer to complete the transaction. The affiliate then receives a percentage of the transaction as a referral fee.

Amazon said the patent was granted Tuesday. The spokeswoman said the company hasn't filed any lawsuits against companies that it believes are infringing the new patent.

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