CommerceNet, a non-profit consortium set up to develop online business networks, has met with major technology vendors to discuss the patents which largely revolve around Web services software. It is thought that a purchase of the patents will prevent opportunistic parties from buying them and then suing for any alleged infringements later on.
Many of the patents relate to technology that facilitates the communication and exchange of transactional information over the Web which may possibly be used in other vendor’s e-business solutions.
While CommerceNet has not publicly committed itself to the purchase the company is thought to be in the bidding at next week’s auction hearing.
Patents are a hotly contested in the software industry. Vendors protect their patents jealously, often launching expensive lawsuits to safeguard them.
If CommerceNet does make a move, Commerce One’s patents, many of which are still pending, are expected to cost between $1 million to $10 million. A key question is how CommerceNet will raise the money.
After pioneering the e-marketplace concept and a subsequent meteoric rise and then fall, Commerce One filed for chapter 11 bankruptcy protection in August this year. In September it announced it was selling its core supplier relationship management division and other assets to a private investment firm comprised of ComVest Investment Partners and DCC Ventures.
