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No. of Recommendations: 2
When I first heard about this, I brushed it aside. But I keep reading more and more about it including first-hand accounts by "victims."

It seems there is a company that has some patents and they claim anyone selling via a website without a license from them is infringing on their patents.

Apparently the company is selectively and systematically finding websites and suing the owners. Once sued, the website operator has to decide between an expensive legal battle or a settlement. A number of website operators have settled and purchased a license from the company after deciding that was much less expensive than fighting.

The MO seems to be to sue a number of small website operators and use the precedent to go after some of the "big boys" of the Internet.

I also understand this company is or has filed for the same patents in other countries, so it won't be just U.S. website operators that may be impacted.

Like I said above, I first thought this was a hoax or something that would only affect other people, but based on what I have read so far, it seems to present a real threat to small website operators.

Related information can be found at

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No. of Recommendations: 0
Here is a list of companies known to have been sued:

PanIP has currently sued 50 small businesses with no end in sight.
The small businesses listed below are being or have been sued by PanIP. If your web site looks or functions anything like those listed below...YOU MAY BE NEXT!

ROUND 1 PanIP LLC v. Dickson Supply Co, et al
• DICKSON SUPPLY COMPANY a New Jersey corporation
• SNOW COUNTRY SKI SHOP a New York corporation
• FURNITURE AND THINGS a Minnesota corporation
• FABRIC DEPOT an Oregon corporation
• BACKCOUNTRY EXPERIENCE a Colorado corporation
• ELECTRONIC EXPRESS a Tennessee corporation
• CP INDUSTRIES a New York corporation
• PEEKAY INC a Washington corporation
website unknown
• ABE'S ELECTRONIC CENTER a New York corporation
• VIDEO AGE INC a Minnesota corporation
website unknown

ROUND 2 PanIP LLC v. Katco Industries Inc, et al filed 8/30/02
• KATCO INDUSTRIES, INC., a New York corporation
• RIGHT ASCENSION, INC., a Pennsylvania corporation
website unknown
• BRADFORD PUBLISHING COMPANY, a Colorado corporation
• BRINGE MUSIC CENTER, a Florida corporation
• ABLE SUPPLY COMPANY, an Illinois corporation
• DEBRAND FINE CHOCOLATES, an Indiana corporation
• ADVANCED BATTERY SYSTEMS, INC.,a Massachusetts corporation
• CHERRY REPUBLIC, INC., a Michigan corporation
• BORDER BOB'S, a Minnesota corporation

ROUND 3 PanIP LLC v. Beach Photo and, et al filed 9/4/02
• BEACH PHOTO AND VIDEO, a Florida corporation
• CR MAGNETICS, INC., a Missouri corporation
• BURRAGE MUSIC CO., INC., a North Carolina Corporation
• HOBART SALES AND SERVICES, a Nebraska Corporation
• ALL AMERICAN COLLECTIBLES, a New Jersey Corporation
• AMERICAN HEALTH SERVICES, INC.,a Pennsylvania corporation
website unknown
• CAN-DO NATIONAL TAPE, a Tennessee corporation
• SUPERIOR RECHARGE SYSTEMS, INC., a Texas corporation
website unknown
• ARCADE ELECTRONICS, INC., a Virginia corporation

ROUND 4 PanIP LLC v. Aseptico Inc, et al filed 9/11/02
• ASEPTICO, INC., a Washington corporation
• AMERICAN SCIENCE AND SURPLUS, an Illinois corporation
• CHARLIE'S PASTRIES, INC., a Florida corporation
• KREG TOOL CO., an Iowa corporation
• ENCORE MUSIC COMPANY, INC., an Indiana corporation
• DARTMOUTH PHARMACEUTICALS,INC., a Massachusetts corporation
• SOLDAN'S FEEDS AND PET SUPPLIES, a Michigan corporation
• COLORADO ELECTRIC HARDWARE,INC., a Colorado corporation
website unknown
• HOT SHOTS PRODUCTS CO., a Minnesota corporation
website unknown
• RIVER CITY MEAT COMPANY, INC.,a Missouri corporation

ROUND 5 PanIP LLC v. Eagles Wings Inc, et al filed 10-4-02
• EAGLE WINGS, INC., a Florida corporation
• DENVER FABRICS, an Colorado company
• CAFFE VITA COFFEE ROASTING CO, a Washington company
• HERD SEEDER COMPANY, INC., an Indiana corporation
• THREE DOG BAKERY., a Missouri company
• CONSOLIDATED LAUNDRY EQUIPMENT, a North Carolina corporation
• LACAS COFFEE COMPANY, INC. a New Jersey corporation
• THE LITTLE PIE COMPANY., a New York corporation
• DOUBLE "H" WESTERN WEAR, INC.,an Oregon company

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No. of Recommendations: 1

I don't know who they are, but they're going after chocolate, pastries, and pies. They're evil and they must be stopped, in the name of sugar junkies everywhere!!!

contemplating a bit of sugar overload even as we speak...
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No. of Recommendations: 1
This has apparently got the interest of the Direct Marketing Association. Here's a communication they are distributing:


Dear DMA Member:

The DMA has received a number of reports indicating that some of our
members have been involved in various legal actions relating to
alleged violations of a patent held by the Divine Corporation
regarding the use of shopping cart technology on Web sites.

The purpose of this e-note is to determine if you have been directly
involved or have some knowledge of this effort.

As you may know, the Divine Corporation has advised several
companies that they have patented the concept of using shopping cart
imagery and technology on Web sites.

We understand that the company has either initiated lawsuits or
threatened to do so for companies engaged in e-commerce that employ
this shopping cart technique. In some cases, Divine has offered to
provide a lifetime license to use the technology for a relatively
modest licensing fee.

We are interested in knowing if you have been directly approached
regarding this issue or if you are aware of any companies that have
been approached.

At this point, The DMA is simply assessing the extent to which this
issue might become an industry-wide concern. If we determine that
there is adequate interest and a significant concern, we would plan
on convening a meeting of interested parties to discuss the
situation further.

If you have any knowledge of this issue that you are comfortable
sharing, please do so by return e-mail.

H. Robert Wientzen
President & CEO
Direct Marketing Association, Inc.

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(not a lawyer, not a legal opinion)

I've heard about it too. Didn't know the suits had gone so far however.

There are a great many makers/publishers of shopping cart systems out there (Dansie, Miva, etc). Seems to me if they really think they have leg to stand on they would sue the shopping cart software companies, not the small companies.

Funny too. Big companies like Amazon, Dell and even the U.S. Postal Service (all of which have shopping cart systems) don't appear to have been approached for suit. That can either mean a) they have worked out a deal with the company or b) proves the BS of the suits.

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No. of Recommendations: 0
BTW, whatever happened to the Amazon law suit over one-click ordering? Did it get resolved?
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