Kickstarter Hit With Patent Claim Over Crowd-Funding

Devin Coldewey

Devin Coldewey is a Seattle-based writer and photographer. He has written for the TechCrunch network since 2007. Some posts he’d like you to read: The Dangers of Externalizing Knowledge | Generation i | Surveillant Society | Choose Two | Frame Wars | The User’s Manifesto | Our Great Sin His personal website is coldewey.cc. → Learn More

Tuesday, October 4th, 2011
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Kickstarter, which just recently celebrated the 10,000th successfully funded project in its 2.5-year history, is under siege by that most ubiquitous of foes, presently at least: patent litigation.

Yes, the site that works so diligently to advance interesting and original ideas among the community is being shaken down by a company seemingly formed for patent-licensing purposes. But whether we like them or not isn’t material if the patent is valid and granted, right?

Here’s the patent: Methods and apparatuses for financing and marketing a creative work. The inventor is Brian Camelio, former studio musician for Journey (surely an albatross around his neck these days) and founder of ArtistShare, a perfectly legitimate and forward-thinking website which allows fans to “show appreciation for their favorite artists by funding their recording projects in exchange for access to the creative process, LTD Edition recordings, VIP access to recording sessions and even credit listing on the CD.” It’s been around for years and has Grammy-award winning artists on its rolls.

It’s an obvious application of the patent, which was filed for in 2003. And reading over the claims, it’s conceivable that it could apply to certain projects on Kickstarter. But like many other “method for” patents, it’s really just an existing business strategy in internet form. People have been collaborating on artistic projects in exchange for creative input for centuries. They use whatever tools they’ve got. The patent amounts to a website that accomplishes this, with almost no specificity as to why this invention is in need of patent protection. Most of the claims and requirements are required either for any collaborative system like this or for any website where media has to be served.

Nevertheless, Fan Funded LLC has endeavored to license its new patent to Kickstarter under threat of litigation for infringement, as PaidContent has noted. Seems a bit like patenting “a car, with wheels” and then suing everyone who uses wheels — though to their credit they did act quickly following the issuance of the patent. Naturally, Kickstarter has asked that the patent be invalidated, and failing that, that they be found not infringing.

As usual, an over-permissive patent office is to blame. Anyone “skilled in the art” would have dismissed this patent as failing to be non-obvious — or at least I would. We’ll update when more information is available.

Update: Kickstarter, it seems, has its own patents on this front. Here and here, a matching pair for patenting the Kickstarter system of “conditional investment.” The patents seem just about as ridiculous, but it’s one thing to have them, another to go around suing people. Thanks to James Crane-Baker for pointing these out.

Update 2: I neglected to check the current status of Kickstarter’s patents due to their (relative) youth; they are in fact abandoned after being rejected. Thanks to Mark Nowotarski for the update. I realize the original post appears a bit incomplete in retrospect, I’m going to do a little more due diligence next time!


Company: Kickstarter
Website: kickstarter.com
Launch Date: April 2009
Funding: $10M

Kickstarter is the world’s largest funding platform for creative projects. Every week, tens of thousands of people pledge millions of dollars to projects from the worlds of music, film, art, technology, design, games, fashion, food, publishing, and other creative fields. Since its launch on April 28th, 2009, more than two million people have pledged more than $300 million to projects by creators who always maintain full ownership and complete creative control of their work.

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