E-centives Inc., the Bethesda, MD-based online promotional and couponing company, has filed a patent infringement lawsuit against CoolSavings.com, its Chicago-based competitor that, over the past year, has filed eight similar suits, including one against E-centives in August 1998.
E-centives bought its patent (“Electronic couponing method and apparatus”) within the last couple months from SellectSoft, a software developer, which was granted the patent in January 1998. Terms of the purchase were not disclosed.
CoolSavings’ patent (“Interactive marketing network and process using electronic certificates”) was granted in June 1998.
E-centives filed suit in the US District Court for the District of Maryland on April 27. It is asking for, among other things, the same redress CoolSavings seeks — royalties from competitors for use of the technology.
Spokeswoman Melissa Rabin said, “CoolSavings is aware of and has reviewed the patent now owned by E-centives, and after discussion with our counsel, we didn’t see how we were in infringement. We will continue to protect our own technology patent.”
Kamran Amjadi, CEO and co-founder of E-centives, said the company wanted to branch out into the offline coupon business and “we realized a lot more protection is required there than in the online space.” The E-centives system has always had the ability to print out coupons but has been focused on their online use.
Amjadi denied that the company bought the patent just to countersue CoolSavings. “I would never do this just to be able to take action against somebody,” he said. “I’m a businessman. This patent ought to make a ton of money for me.”
Earlier this month CoolSavings reached a settlement with one of the companies, CouponSurfer based in Bedford, MA. Terms weren’t disclosed, though CouponSurver can “employ a limited form of the patented technology,” according to CoolSavings.
Network
