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ARTICLE · 18 MAY 2001

Royalties For International B-To-B?

United StatesIntellectual Property

In the early 1990s, Mr. Pool went to Russia to search for opportunities to import materials into the U.S. Because of fluctuations of the ruble at the time, Mr. Pool commissioned a company to develop a computer system that could be regularly updated and spit out prices that could be locked in. He later applied for a patent based on the software, covering the computerization of the entire trade process, including the creation of customs declarations and shipping documents, along with services such as insurance and letters of credit. In May, the patent office notified Mr. Pool that it would soon issue him a broad patent covering "a process for carrying out an international transaction . . . using computer-to-computer communication." When and if the patent becomes final, anyone conducting computer-to-computer international trades over the Internet may infringe on the company’s intellectual property.

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