Apple licenses Amazon's 1-Click technology

PALO ALTO: Apple Computer Inc. on Monday became the first company to license

Amazon.com Inc.'s 1-Click technology, a coveted and controversial process which

vastly simplifies online shopping.

Amazon's patented 1-Click technology lets returning customers to an online

store complete a purchase with just a single click, so that they do not have to

reenter any credit card or billing information.

Apple senior vice president, worldwide sales, Mitch Mandich said it was Apple

that approached Amazon about licensing the technology because it wanted to offer

its customers the easiest possible online shopping experience.

"We think Amazon has great technology in this," Mandich said.

"We think 1-Click is a very big differentiator for Amazon, and we want to

continue to improve the Apple (Online) Store, which currently accounts for 25

per cent of our revenues."

Terms of the deal were not disclosed and Amazon declined to say whether the

company would pursue additional licensing deals.

1-Click is often regarded as one of the pillars of Amazon's superior customer

service, and could potentially be a lucrative source of revenue if Amazon

decided to license it broadly. Surveys of online shopping sites routinely show

that customers intending to make a purchase frequently change their minds if the

buying process is too slow.

However, many critics believe the 1-Click technology is so simple that it

should not be covered by a patent. Amazon is currently in litigation over the

patent with its rival Barnes & Noble.com, which it sued last year charging

it had illegally copied the technology. Although Amazon did win a preliminary

injunction against Barnes & Noble.com, the dispute over 1-Click has not yet

been resolved.

Mandich acknowledged Apple Computer probably could have built a 1-Click

shopping process on its own, but said it wanted "to do the fair thing, and

be responsible."

"Amazon has proven that this is very important and valuable technology

and it enhances the customer experience," he said.

Apple said it will use the technology to feature popular products on the

Apple Store start page, so that shoppers will be able to log on and complete a

purchase almost instantly.

(C) Reuters Limited 2000.