A group of major US not-for-profit groups announced last week that they are joining the Nonprofit Innovation Alliance's battle against business method patents.
United Way of America, the American Diabetes Association, the Network for Good and the Electronic Frontier Foundation will support the NIA's efforts to rein in the growing trend towards the granting of 'business method' patents.
“As nonprofits recognize the threat posed by business method patent abuse, there is growing support for collective action to protect technology access for America’s charities,” said Shabbir Safdar, Acting Secretary of the Nonprofit Innovation Alliance. “The fact that the United Way of America, American Diabetes Association, Network for Good and Electronic Frontier Foundation have pledged their support for the NIA sends a strong message: business method patents are bad for the nonprofit sector and should be eliminated.”
These four organizations have pledged support for the NIA’s goals because they believe that nonprofits are best served if technology vendors and service providers help declare the nonprofit industry as a “business method patent-free zone.” They are encouraging technology vendors and service providers working with them and other nonprofits to join the NIA. Support for NIA’s goals from the Electronic Frontier Foundation (EFF) is especially significant because this group is the leading civil liberties organization working to protect people and organizations whose online rights and freedoms are threatened.
The NIA consists of leading technology and consulting companies that provide products, services and/or consulting to help nonprofits optimize their use of the Internet for fundraising, advocacy, event management and other mission-critical activities. Alliance members agree to cross-license any current and future business method patents on a royalty-free basis for the benefit of their nonprofit customers.
Said Michael Schreiber, Executive Vice President for Enterprise Services, United Way Of America, “We’re on board with the NIA and against business method patents because adoption of technology by nonprofits is accelerating and organizations are becoming much more sophisticated in how they use these new and powerful tools. There is a growing need to share and make use of technology innovation – not stifle its diffusion throughout the charitable sector.”
Network for Good’s Chief Executive Officer, Bill Strathmann, explained why Network for Good is supporting the NIA. “The alliance represents something nonprofits believe in and, to a large degree, rely on: collaboration. Like their customers, nonprofit providers must balance their business interests with those of the sector. Nonprofits need choices when it comes to the tools they use to help fulfill their missions. When providers collaborate, nonprofits win.”
First validated by the courts in 1998, business method patents are highly controversial because they typically do not cover innovations that solve a particular technology problem. Instead, holders of business method patents are claiming to be the first to engage in a transaction over the Internet in a particular way. Examples of business method patents include Amazon’s one-click patent and Priceline’s reverse auction patent.
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