Wal-Mart Stores, Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT) are in this one together, and we're not talking a battle for retail supremacy here. The two mega discount retailers face an ongoing patent lawsuit over their use of RFID technology to keep track of warehouse and retail inventory levels and automated ordering and processing.It's hard to imagine a commodity technology being used in so many ways by retailers the world over being patented, but that's just what Houston, Tx. citizen Ronald Bormaster is claiming. Bormaster's RFID patent covers RFID in a way that ensures pallets and units of merchandise don't "collide" when being handled in an automated fashion, and he assigned the patent to a Houston company called "RFID World" -- which is not even using the system on a commercial basis to this day.
Wal-Mart and Target both have asked the patent lawsuit to be thrown out, arguing that it has no merit and that Bormaster's patent isn't a patent in the first place. The retailers say, based on a 2005 University of Arkansas study, that RFID allows in-store merchandise to be replenished three times more quickly when RFID is involved as opposed to manually-scanned bar code systems. Would customers see visible inconveniences in stores if this patent lawsuit was won by Bormaster and RFID was no longer allowed to be used by the two retailers? They say yes. Procter & Gamble Co. (NYSE: PG)'s Gillette brand is also involved with this dispute since it's a large proponent of using RFID in its mass production facilities with its partners. All three companies want the case to be thrown out in its entirety.
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Reader Comments (Page 1 of 1)
2-26-2008 @ 2:48PM
Tigerz said...
Serves the super retailers right. I'm sure they will do what they can to throw it out of court. But in lieu of the material dependence of all three large corporations in terms of distribution input (turnover times of inventory) I believe this one has merit. I'm just glad to see someone smart enough to patent an invaluable tool for the new era of supply chain management RFID.
I hope the patent rules in the plaintiffs favor because those two large capitalist corporations get wealthy off the consumers and turn around and give the shareholders squat--where is our return on investment? Oh sorry, yet both corporations the case can afford to pay millions a year for executive positions. Sad. Sue them to the core RFID!
2-26-2008 @ 3:00PM
Tigerz said...
If proof of patent exists, then perhaps the RFID patent holder should request a royalty fee of all those using the technology payable in arrears and forward-looking. And make sure to renew the patent at before expiration--a delay will allow others to gain access to the blueprints. I will be looking for the courts decision.
4-07-2008 @ 9:58AM
isaiah said...
i worked for target over 4 years and fully understand the way they do business , whether be a patient investigation or accessability to the blind.
high price corporate lawyers with thier scripted prodictable law savy manipulate the justice sytem as all other retail giant. with thier hands caught in the proverbial cookie jar.
should we believe the billions of dollars they have the consummers will benefit absolutely not.
just like my self injured at one of ther stores , still wait for medical care and workmen comp . salary benefits.
you beleieve target cares about its guest or team members think again, i'm a wittness of thier abuse of a team member rights to proper nedical treatment and sick pay to support his family , but i'm sure no one wants to hear about this.
keep up the facades and illussion target and walmart are so great at what they do , but at what exspense of it customers or guest or team members.?
blogs like this are predctable you only want a kiss up !! responses to an obvious sel rightous retail company bend on profit and greed.
why waste the space ! target wins ! and continues the abuse of team members civil rights and manipulate its guest in believing thier concern with thier shopping experience. i been on the inside and i really know what goes on behind close doors !