Amazon Could Sue Competitors
0When blue oceans turn into red, lawsuits follow shortly thereafter. Amazon had the e-reader market all to itself a couple of years ago. Now that the market is more competitive, it would not be surprising to see Amazon go after Nook and other e-readers. Amazon does seem to have the appropriate patents at hand, which could spell trouble for its competitors.
A 2006 Amazon patent that was recently granted and made public seems to be wide-ranging enough in language to give Amazon the ammunition it needs to go after Nook and Alex:
5. A handheld electronic device comprising: a first display for presenting visible representations of content, the first display comprising an electronic paper display; and a second display positioned alongside the first display, wherein the second display includes a plurality of graphic elements that correspond to portions of the first display, and wherein the second display is responsive to user input to one of the graphic elements to perform at least one action on content shown in a portion of the first display that corresponds to the one graphic element.
That’s not all. Some of these points suggest that Amazon may have had plans to develop a similar device to Nook (as far as design is concerned):
42. A handheld electronic device comprising: a housing; an electronic paper display disposed in the housing and having a first surface area; and a liquid crystal display (LCD) disposed in the housing proximate the electronic paper display, the LCD having a second surface area that is smaller than the first surface area of the electronic paper display.
…
47. An electronic book reader device comprising: an electronic paper display to present visible representations of electronic book content, the electronic paper display providing a first surface area; and a second display positioned alongside the electronic paper display, the second display providing a second surface area that is less than half that of the first surface area of the electronic paper display.
Based on some of the points in the released patent, Amazon has more than enough to go after Nook and Alex. The company has not announced any plans to do so. But considering the price wars its involved in with B&N and Borders, it would not be surprising if Amazon went with the nuclear option.
To be fair, Amazon has chosen not to follow up with the design explained in this patent. Besides, the company has not complained about Nook and Alex publicly, so it’s not clear where it stands. As the e-reader market becomes more competitive, the chances of Amazon suing B&N and others increases dramatically. Does Amazon have a clear case? That’s not so obvious at this point.