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Tag Archives: ecommerce

Big changes for internet shopping

On June 21, 2018, the U.S. Supreme Court ruled in Wayfair v. South Dakota that internet and catalogue retailers can be required to collect sales taxes from customers in states where they have no physical presence. In plain English, in most situations, no more tax-free shopping on the internet. Buyers have always technically been required to pay a use tax to their state if no sales tax was collected by the seller. This decision overrules two older decisions that allowed retailers to avoid collecting sales tax on customers outside of its home state and outside other states where the retailer had employees, a store, a warehouse or some other physical presence. This is likely the most significant state and local tax case in 25 years and will have a profound impact on businesses who sell taxable goods or services online. Further, there are implications for mergers and acquisitions and could have a chilling effect when the potential buyer of a company realizes that the target has major sales tax exposure.…

Expiration of Amazon’s 1-Click patent: Are you preparing for the single click world?

About two decades ago, Amazon.com, Inc. revolutionized e-commerce transactions with the innovation of single click buying. Single click buying is a checkout process that enables customers to bypass the shopping cart to make an online purchase with a single click based on payment and shipping information previously provided by the customer. Amazon received U.S. Patent No. 5,960,411 (the 1-Click Patent) for this technology in 1999. Amazon also has U.S. registrations for the trademark “1-Click”. The 1-Click Patent will expire on Sept. 12, 2017 so the technology will enter the public domain and Amazon will no longer have exclusive rights. This is good news if you like to use single click buying at Amazon.com, iTunes, iPhoto, Apple App Store etc. (Apple, Inc. licensed the single click technology from Amazon) because many other companies will begin using this technology once the 1-Click Patent expires. If you have an e-commerce site, you should be preparing for the single click world where many customers will likely come to expect “frictionless transactions” everywhere including mobile applications.

The 20 year life of the 1-Click Patent has not been without controversy. …

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