In the early 2000s, search engine marketing (SEM) was originally defined as the umbrella under which both paid and organic search would fall. This made perfect sense, as marketing naturally incorporates a wide array of tactics, including advertising.

Over the years, however, the term "search engine marketing" has come to mean different things, depending on who you ask.

When an industry can't come to common consensus about what a high-profile term really means, how can the business and brands shopping for, purchasing, and relying upon the performance of, these services possibly make informed decisions?

Why is There No Consensus on the Definition of SEM?

The definition of SEM is surprisingly different, even contradictory according to the search engines, within the industry, and throughout the business marketplace.

Soon after the term SEM came onto the digital scene, it became synonymous with paid search, at least to some authorities and many professionals working in the industry.

An entire industry has been built under the context of SEM as the practice of paid search. Yet, to others, SEM is still defined as a broader topic, incorporating SEO, paid search, and other techniques to impact search engine visibility.

Wikipedia

Wikipedia definition of SEM a comprehensive approach to increasing visibility of websites in search engine results pages (SERPs) through optimization and advertising, including search engine optimization (SEO), pay-per-click (PPC), and even includes SMM (social media marketing).

SEMPO

SEMPO defines SEM as:

A form of internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). SEM methods include: search engine optimization (SEO), paid placement, contextual advertising, digital asset optimization, and paid inclusion.

Search Engine Watch

Search Engine Watch defines SEM as both paid and organic search. However, SEM posts, training, and ads are frequently related to paid search.

Search Engine Land

There are two posts on Search Engine Land that define SEM slightly differently.

It's unclear which was posted first. However the first post defines "search marketing" as paid and unpaid.

The second post, however, defines the acronym SEM, short for "search engine marketing" as being paid search. It does reference the legacy of SEM as paid and unpaid, stating that the acronym has been adopted by many to refer solely as paid search. They reinforce the separation in site navigation, presenting advertising topics only under SEM.

CIO

CIO.com recognizes SEM as a combination of paid advertising, search engine optimized design, marketing copy, involvement with the online community, and keywords.

The inability of the industry to come to terms on a definitive understanding of what SEM really is has drawn unsuspecting victims into thinking they are getting something they are not.

Let's be honest. SEM services rarely incorporate SEO. In the wake of Google algorithm updates, Penguin, Panda and Hummingbird, many have shifted from offering SEO services to focus on paid search via search engine marketing services.

How Do the Search Engines Define SEM?

Bing

Bing appears to view SEM as paid search as demonstrated on the landing page below, where "search marketing" links directly to a page to get users started on Bing Ads.

However, Bing Webmaster Archive offers the following answer to the question "What is SEM?"

SEM encompasses all of the various ways site owners can use search engines to attract more traffic to their websites. SEM is all about helping users of search engines find your website. SEM is comprised of two major parts: SEO and Pay-Per-Click (PPC) advertising.

Google

In a "Learn with Google" online vocabulary reference Google defines SEM as:

The use of online advertising on search engine results pages to help visitors find your website. SEM often uses pay-per-click (PPC), a bidding model that charges advertisers only when someone clicks on their ad (also referred to as cost-per-click, or CPC)."

Yet, a 2013 Google Analytics Blog "Organic Search Engine Marketing" addresses ways to measure ways to measure organic search engine marketing.

Search Engines Promote SEM as Paid Search

While SEM definitions are accompanied by editorial that appear to promote SEM as a combination of paid and organic, a search results on Google or Bing predominantly present search engine marketing as paid advertising campaigns.

How Do Industry Professionals, Businesses, Brands Define SEM?

No surprise, industry professionals and the clients they serve also have varying perceptions on the definition of SEM.

Below is how professionals in the industry answered the following two questions:

• When you hear SEM do you think of organic or paid search?
• What do you think most marketers and businesses think of when they hear SEM?

"SEM = Paid only" according to Bruce Clay, President of Bruce Clay Inc., a leading authority in search that provides search engine services, tools and training.

"Businesses are split, considering SEM to be either PPC or (PPC + SEO)," Clay said. "I do not think anyone considers SEM to include social. Those in the Internet marketing industry probably think mostly PPC."

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"When I think of SEM, I think of paid search or PPC," said Bill Hartzer, senior SEO strategist at Globe Runner SEO, who is also an industry speaker and blogger. "When referring to organic search it really is SEO. From what I recall, this distinction began around 2005 or 2006."

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"I generally think organic or a combination," said Krista Neher, marketing strategist, author of "Social Media Field Guide", professional trainer, and founder of "Boot Camp Digital". "I think most businesses probably don't know what SEM stands for. I train thousands of businesses a year, and most of them think of search engine marketing as organically getting traffic from search engines."

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"I tend to think of both organic and paid since the acronym stands for 'search engine marketing," said Adam Proehl, founding partner of NordicClick Interactive, industry speaker and trainer. "It varies across the board for business and marketers I come across. I'd say (anecdotally) that about 50 percent think of it as paid. About 25 percent think of it as both. Another 20 percent confuse it with SEO and the last 5 percent has absolutely no idea."

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"To me, SEM covers the whole gamut of marketing via search engines, both organic and paid", said Mark Traphagen, senior director of online marketing at Stone Temple. "The best SEM strategies are built around coordination between the two sides."

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"I used to only think of organic, because I live in an editorial-based public relations world. But today I look at it as a blended force of paid and organic working together and tag teaming the branding, marketing and influencing online public relations," said Lisa Buyer, author of "Social PR Secrets", industry speaker, coach, and trainer. "Most businesses are still figuring out what SEM means. I think most look at it as some sort of Internet marketing or digital marketing probably skewed towards the paid side."

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"I think of organic, expanded," said Kristine Schachinger, CEO of The Vetters, industry speaker and consultant; who added that she thought it could cover PPC and expanded marketing services covered in organic search. "I think businesses say "SE…What?" Oh, you rank stuff on browsers, right?"

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"I think most in 'the biz' think paid when referring to SEM," said Elmer Boutin, associate director of search strategy at Rockfish, and marketing and IT blogger. "I think it's both paid and organic. The idea is to use search engines to market your products or services. To do it best involves both paid and organic in many circumstances."

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So there you have it. Search engines, leading authorities, and industry professionals fail to agree on the definition of "search engine marketing".

What is the Correct Definition of SEM?

As illustrated above, there is a great variety of interpretations of SEM across the industry. It's no wonder that businesses and brands are confused, challenged, and frustrated when attempting to communicate effectively and make informed decisions about how to allocate resources.

There appears to be no right or wrong answer.

But, shouldn't there be just one definition of SEM? What's your definition of SEM?

Source Link:-  Search Engine Watch

The giant in online retail, Amazon is a great source for generating profits, whether as a supplement to other channels or as your main sales channel. But with intense competition and multiple sellers, it takes some creativity to stand out and grow sales.

Additionally, high conversion rates on Amazon have a direct correlation to ranking organically in Amazon searches, so paying attention to providing a positive customer experience is very important.

Luckily, you can definitely apply certain strategies on Amazon. Here are tips to help set you up on the right path to success.

On-Page Optimizations

Getting the on-page creative elements right on your page can help with your conversion rates and also help you rank higher in organic results on Amazon. Pay attention to three main elements here: images, content, and reviews.

Images

Have at least four to five high quality photos in order to enhance the customer experience. Adding in videos as well can really help your product stand out from the competition. Oxo does this very well:

Amazon’s guidelines for images include:

• They have to be on a plain white background without any text or watermarks.
• The product should take up at least 80 percent of the image.
• No drawings or illustrations are accepted.
• Recommended size is 1,000 x 1,000 pixels so that products can be viewed in detail.

Content

The content here includes the title, bullet points and product description. Before you start writing any content, check what the character limits for that product category are, since they can vary a fair bit. Then start by writing a descriptive title with a keyword or two within it.

For example, T-Fal does a good job of describing their non-stick pan and its benefits, such as dishwasher safe, but they also put in keyword terms such as Fry Pan and Saute Pan:

Note: The title should never contain any offer-related information such as pricing or promotions.

Then, the next most important content area is the descriptive bullet points next to the image. Keep them succinct, but ensure you include the top product features and reinforce its benefits. It’s a short space to convince people to buy, so ensure you leverage your most important purchase triggers.

A good tip is to try building upon elements from your best-performing paid search ads that you know get a good click-through rate. Numi does a great job here:

Then make your product descriptions count! Try to use as much of the space allowed to tell a real story about your brand, your product and what sets you apart from the competition. Once again, you can reinforce the purchase triggers in slightly greater detail since you’ll have a little more space to work with. If you have the option, include photographs as well.

Here is Numi’s description:

As with all your content, try testing different variations to find the one that converts best.

Reviews

Amazon has pretty much trained online shoppers to read reviews prior to making a purchase. The more positive reviews you get, both for the product and as a seller, the better your chances of making a sale.

On a humorous note, reviews have even been turned into viral content as in the case of the BIC Pen designed for women:

Amazon reports that only 10 to 20 percent of buyers leave feedback after their purchases. Since we can’t compel buyers to leave feedback, here are some tips to increase your chances of success:

• If you sell via other channels as well, reach out to your existing base of satisfied customers and ask them to leave some product feedback.
• You can also do an outreach campaign via your social media channels to request product feedback.
• Amazon also allows you to provide product for free if you ask for an unbiased review. They don’t allow offering any incentives for a positive review so be careful how you phrase this.
• Request feedback via your seller account from buyers on Amazon, who can leave not only product feedback but also seller feedback.

Reduce your chances of receiving negative reviews by understanding the most common causes for buyers to complain:

• Product out of stock
• Product not as described
• Late shipments
• Incorrect item shipped
• Complicated return process

Given how customer-centric Amazon is, shoppers have been conditioned to expect fast shipments and products that meet the quality guidelines. Any deviations from these high standards can cost you more than just negative feedback; processing a return or reshipment does cost some money too.

Too many negative seller reviews can even have your account suspended, so be careful to always put the customer first, just as Amazon does. The better reviews will really pay off in your sales.

Driving Traffic and Sales

Now that your product listing page is well set up it’s time to up the ante and drive a lot of targeted traffic to generate sales.

Sponsored Products on Amazon

One great way to drive traffic back to your product listing page is the Sponsored Products on Amazon PPC ad option, which are ads on Amazon that drive traffic back to product listing pages on Amazon itself. These ads show up alongside the search results for the keywords you choose and provide additional visibility for your products.

Not all product categories are eligible (e.g., books is a closed category) and only products that win the buy box are eligible to have their ads show up. However, those that are eligible enjoy a high ROAS, especially on short and mid-tail keywords.

It’s extremely easy to get started. There are no ads to write; all you do is select your keywords and your products and set the bids. With careful selection of keywords and targeting, the chances of a sale are extremely high since buyers on Amazon tend to have a higher intent to purchase, leading to less wasted clicks than with other PPC programs.

There’s another added benefit too. The additional sales generated from this improve the page’s sales rank, which in turn improves its rankings in the organic listings.

Mobile Media Buying

This one’s a little out of the box.

If your own website isn’t mobile friendly or converting mobile visitors very well, you could consider sending them to Amazon instead. Since mobile inventory is still relatively inexpensive and Amazon makes purchasing from a mobile device incredibly simple and painless, it’s worth testing a small mobile-only media buy to send traffic and see if you can generate incremental profits.

Clearly there are some potential risks such as not having proper attribution data since we can’t place a pixel on Amazon’s site or Amazon displaying other sellers under new and used on your listing. But if you can see overall order volume go up for your product as a result of these buys and if the costs back out after factoring in the selling costs in addition to the media, then you have a winner on your hands.

Overall the above strategies will even help the organic listings on Amazon, since they are heavily influenced by sales.

Additional Resources

Looking for some additional reading and resources? Amazon provides good seller training in their webinars.

If you’re new to Amazon and looking to set up a product listing page, Amazon offers a handy resource guide, complete with a handy checklist.

Have you tried other strategies that have been successful on Amazon? Share your thoughts in the comments below.

Source Link:-  Search Engine Watch

It has been nearly 2 years since iAcquire was penalized by Google for participating in link buying schemes for their clients. At the time it was pretty significant because it was an SEO agency that had been banned for work they did for the clients, rather than work they did specifically for their own site.

However, iAcquire’s name has once again been linked to link buying, this time with a tweet from a former client who was selling links to iAcquire, a tweet that Google's chief spam fighter Matt Cutts happened to notice and respond to.

@VitaliyKolosWDL ಠ_ಠ

— Matt Cutts (@mattcutts) March 20, 2014

"Vince" from Web Design Library has been tweeting multiple companies about renewing their link buys that were expiring on the WebDesign.org website. The link seem to have been sold initially by iAcquire, but appear to no longer be doing so, as the company is performing the outreach to the individual link buyers.

This was one of the pages in question that was being used to sell links.

Search Engine Roundtable grabbed a screenshot of the entire conversation between "Vince" and T-Mobile before T-Mobile deleted the tweets:

As a self-proclaimed SEO, you really have to wonder why he is taking his link selling into such a public forum, where anyone from Google’s spam team could (and did) see his tweets.

"Vince" has placed on Twitter not only a page he is selling links on, but also the names of all those people and websites whom iAcquire was presumably selling links for as well. What is even more curious is the fact that the link seller hasn't deleted any of the offending tweets since Cutts (and many others) have commented on it.

It also caught the notice of Brian White, another member of the webspam team, who mocked the link seller along with a clever photo of himself using an Android cookie jar like a batphone.

@VitaliyKolosWDL I'm ready to talk about link building! Conference me in!pic.twitter.com/Ys0dwGK0lv

— Brian White (@brianwhite) March 21, 2014

Has Web Design Library been penalized? It now appears so, five days after Cutts' tweeted his response, though that wasn't the case just yesterday.

After ranking 8th on a search for [web design] yesterday, now the site is ranked 48th, Search Engine Land reported. And it no longer ranks first when you search for Web Design Library.

Google has been treating both link buyers and link sellers harshly of late, including cracking down on numerous link networks.

Source Link:-  Search Engine Watch

Looks like Google has harnessed its sense of humor again with its own Konami Code for desktop voice search that unlocks a prize: free unlimited Google searches! 

To try it out yourself, activate voice search, and then say: up, up, down, down, left, right, left, right.

If you're a player of video games, you're probably aware of the "Konami Code" -- a "cheat" code that works on games produced by Konami Corporation (and some other non-Konami games). 

TechCrunch reported it isn't the first time Google has harnessed the Konami Code: 

When inputted into the Pixel Chromebook, the LED strip on the lid of the laptop puts on a light show by blinking a random series of colors. The infamous code also unlocks an achievement in Google Play.

Google has been known for hiding gems across the Web for specific searches, too. Have you tried searching for the oldie-but-goodie "do a barrel roll" or "tilt"? Good times. 

If you know of any other hidden treasures (a.k.a., "easter eggs"), share them in the comments below.

Source Link:-   Search Engine Watch

The new Google search layout users began seeing a couple weeks ago on a limited basis has now gone live to all users.

Google's search new layout, which changes the font and removes underlines from links, as well as displays the AdWords ads at the top differently, has definitely been getting poor reviews as it rolled out to everybody.

The headlines are larger the description text seems to be slightly lighter and they have adjusted the fonts with the wider typeface.

For AdWords ads, gone is the light yellow in the background that we have long associated as being advertising space for many years now. The new style doesn't have any shaded background, instead it has a tiny yellow "Ad" marker next to the green URL. There is also an underline separating the ads from the organic search results.

Beyond the cosmetic change, the new search layout is affecting SEO in a pretty pronounced way. Titles that were optimized to the maximum 70 allowable characters for SEO purposes will now find the same headlines truncated in Google's new results, giving everyone about 59-60 characters to work with. This means you might have a lot of work ahead of you trying to rework titles so they don't appear poorly truncated in the search results, which could impact click-throughs to your site.

The first time many user saw the changes, many users thought they actually had their search hijacked or were falling victim to Google spoofing, because the search results looked completely different. And the reviews definitely aren't good across the board, judging from all the comments by very upset searchers, something that actually made the switch to another search engine strictly because of the new look.

To me, it looks like a throwback to how search engine results looked 10 to 15 years ago, such as on Webcrawler or Hotbot, not something that has been refreshed for 2014. And I do agree with many people who say the new font makes it much harder to read and scan when on a desktop.

Google's logic behind the new change was that they make the changes for mobile and tablets, and they carry out over several the design changes to desktop users. Google said they feel this creates improved readability and a much cleaner look. And they had an end goal of creating a consistent user experience across multiple devices (desktop, mobile tablet):

Towards the end of last year we launched some pretty big design improvements for Search on mobile and tablet devices (mobile first! :-). Today we've carried over several of those changes to the desktop experience.

We've increased the size of result titles, removed the underlines, and evened out all the line heights. This improves readability and creates an overall cleaner look. We've also brought over our new ad labels from mobile, making the multi-device experience more consistent.

Improving consistency in design across platforms makes it easier for people to use Google Search across devices and it makes it easier for us to develop and ship improvements across the board.

Will we see any changes reverted back? Hard to say, but Google doesn't too often revert back on their changes once they've jumped in and made them.

Source Link:-  Search Engine Watch

While Google users in the U.S. and many other countries have been getting encrypted searches by default, Google has now expanded and begun encrypting web searches conducted by users in China, the Washington Post reported.

The change comes about as part of Google’s plan for global expansion of their encrypted search, in part to combat surveillance of online activity by governments, police, hackers, and others.

It also has wider spread implications. The Chinese government has a long history of blocking searches they decide are politically sensitive the topics, such as Tiananmen Square.

But the move to encrypted search means nations that intercept user searches will find it much more difficult, if not impossible, to be able to block those sensitive searches. And if they are able to, they will have difficulty connecting searches to specific users.

“The revelations of this past summer underscored our need to strengthen our networks. Among the many improvements we’ve made in recent months is to encrypt Google Search by default around the world,” a Google spokesperson told the Post. “This builds on our work over the past few years to increase the number of our services that are encrypted by default and encourage the industry to adopt stronger security standards. ”

Google pulled back most of their operations out of mainland China back in 2010, in part because they didn't want to either censor user searches, or present them with alternative search results that were government approved. China's biggest search engine, Baidu, on the other hand, censors searches and participates in the redirecting to sites the government deemed to be preferred.

Google’s search share in China is very small, sitting at only 5 percent in a market that is largely dominated by Baidu. Whether this change to encrypted search will make users more likely to use Google, time will soon tell. However many web users in China already utilize methods to bypass China’s so-called Great Firewall.

Source Link:-  Search Engine Watch

Whatever anyone says about digital and social media, nothing can replace the power of face-to-face engagement, networking, and learning that can be experienced at a conference relevant to your business or passion.

I've been working in digital marketing for nearly 14 years now and I relish every moment I spend with my peers in the industry, either listening to them speak onstage, doing the speaking myself and hearing their questions, or chatting free-form until the wee hours in a hotel bar in some part of the world.

Sure, the Internet has broken down all sorts of barriers and enabled agile and immediate communication like never before, but there's still something to be said for a good old chinwag in the corridor of a hotel or convention center with someone you might end up working with or learning from.

When you get the opportunity to go, what's the best way to capitalize on the fact that your boss is letting you out of the office for a few days and has probably invested a good few thousand dollars in flights, hotels, and conference pass fees?

With ClickZ Live in New York right around the corner, here are four tips for getting the most from the conferences you go to.

1. Have a Plan Before You Go

Shocking thought, isn't it?! This means reading the conference agenda before you get on the plane and picking out the sessions/speeches you want to attend.

Showing up on the day without any idea who's speaking or what they're about will set you back, as you won't have really thought about the outcome of you being there. Spending a bit of time researching the speakers and their companies will help you pinpoint educational areas that might benefit you and your peers back home more greatly than others.

Also, as a speaker myself, there's nothing more annoying than latecomers or, even worse, people who leave because they've realized they're in the wrong session for their needs.

2. Take a Tour of the Expo Hall

Most conferences will have some kind of expo hall where companies have paid fees to set up a stall to demo their products or talk about their services. Make a point to chat to them all if you can.

Try and overcome any shyness and ask them what they do and how they could help you or your business. If they've sent real people, then they're after real conversations and you might as well learn what you can by asking probing questions. I've been surprised on many occasions how fruitful an expo hall conversation has been.

So, even if you don't think they'll have much in common with you, give them a chance. You might be surprised.

3. Take Lots of Notes and Photos

The dreaded conference trip recap needn't be a chore. Taking notes in each session will help you remember everything that was said, provide you with a lot of insight to take home to your business (and get a lot of kudos, too), and it could be used to create some really good content for your company blog or social media sites.

Turning what you learn into an opinion piece that's relevant and useful to your industry or hobby could in turn create a bit of online attention for you, as people who didn't make the conference are educated by proxy.

4. Network Like Crazy (and Don't Forget Your Business Cards)

Meeting and talking to people at these events is essential. You can't lurk around conversations at a dinner or a cocktail party and glean information like you can on Twitter or Facebook. You'd get short shrift and maybe get thrown out for being weird, so engage!

It always makes me giggle when I ask someone for a business card at a conference and they pat their pockets and say they've run out or don't actually carry them. I wrote a piece earlier this year about business cards not being dead that caused a bit of stir. Some likened it to that scene from American Psycho, but I stand by my opinion that you need something to hand off to a prospective client or partner so (especially if it was during the conference after-party) they'll remember you when they get back to their desk.

We may spend much of our time online these days for work and play, but remember you are social media. I am social media. We're all being social at these conferences we're lucky enough to attend, so make the most of it and carry those relationships back online through the interwebz and stay connected so we can learn more from each other until the next time we meet again.

Source Link:-  Search Engine Watch

Patent wars are nothing new. Every day, tech companies battle in and out of court over patented innovations.

Take high profile cases like Oracle v. Google, for example, or recent cases like Microsoft's battle to uphold its mapping patent. But this week, patent infringement hit close to home with the case,BrightEdge Technologies, Inc. v. Searchmetrics, GmbH. et. al. and their respective technologies.

The complaint, filed by BrightEdge, states that Germany-headquartered Searchmetrics is infringing on four of BrightEdge's patents by "manufacturing, using, offering for sale, and/or selling its SEO software platform in the United States, and/or importing its SEO software platform into the United States."

The BrightEdge patents in question include the following (warning: dry legalese follows):

• 8,577,863: "Correlating web page visits and conversions with external references" by Yu et. al. Prosecuted by Baker Botts L.L.P.. Includes 7 claims (1 indep.). Was application 13/369,916. Granted 11/5/2013.
• 8,478,700: "Opportunity identification and forecasting for search engine optimization" by Yu et. al. Prosecuted by Maschoff Brennan. Includes 15 claims (2 indep.). Was application 12/854,644. Granted 7/2/2013.
• 8,478,746: "Operationalizing search engine optimization" by Yu et. al. Prosecuted by Maschoff Brennan. Includes 20 claims (3 indep.). Was application 13/368,859. Granted 7/2/2013.
• 8,135,706: "Operationalizing search engine optimization" by Yu et. al. Prosecuted by Maschoff Gilmore & Israelsen. Includes 22 claims (2 indep.). Was application 12/855,668. Granted 3/13/2012.

BrightEdge Technologies v. Searchmetrics et. al.

It's unclear exactly which areas of technology at Searchmetrics are in question, but the complaint states Searchmetrics competes with BrightEdge with its "Searchmetrics Essentials" and "Searchmetrics Suite" products.

Dennis Goedegebuure, head of SEO at Airbnb, said while he's neither a patent expert nor a lawyer, "the patents BrightEdge have been granted are not really unique, and probably have been built on prior art from other companies."

He further explained using an example.

"The system described in the patents was widely used when I was working at eBay, and I actually presented a similar system, on multiple conferences in 2011 and 2012. A short write up of one of those presentations can be found here," Goedegebuure said.

"That system was built in 2009, where we built the strategy starting in 2008, far before the patents by BrightEdge were submitted. We would check the 'share of voice' of any eBay page ranking for a keyword, and compare our position with the competition on multiple factors, backlinks and on-page factors; after which, we would be able to estimate what would be needed to push those eBay pages upwards in the rankings."

He concluded that he knew of "a dozen of companies that used these kind of techniques at the time, which was all before the timing of these patents being submitted."

Goedegebuure represents just one viewpoint of many in the controversy surrounding patents in this space. But before we talk more controversy, let's take a look at the reason why software companies file for patents in the first place.

Why Patents?

"A software company can benefit from patents in the same way that any other innovative company might," said Edmund Walsh, co-chair, post-grant proceedings group at Wolf, Greenfield and Sacks, P.C. "Developing new technology frequently entails a significant investment, and patents help the people who make that investment get rewarded for it."

Walsh said patents reward these type of innovators in many ways, such as "letting them sell their product at a higher price, giving them something to trade with development partners with needed technology or making investors or acquirers feel comfortable enough in a business that they will invest in it or pay more for it."

Dr. Cory Plock, president and CEO of Prolifogy Inc., a software development, consulting and advisory firm, clarified how patents in the software world work.

"Software companies seek patent protection for certain specific parts of a software application that they consider novel. The software itself is not what is patented, but rather the methods or processes the software might execute when running, or physical devices that might perform the execution of the methods or processes."

Plock said patents in this space would "make a software company more inclined to spend time, money, and resources to foster new ideas into marketable software products without the fear that the fruits of their investment will be ripped off and used by competitors."

Some companies may take out patents simply to protect themselves from so-called "patent trolls" – those non-practicing entities that seek to enforce the patents they hold.

"My company invests millions of dollars every year on software product development," said Larry Kim, founder and CTO of WordStream. "And over the years, we've also invested a few hundred thousand dollars on Intellectual Property – basically filing software patents for key unique and differentiating elements of our PPC management platform, like our PPC Grader.

"I hate spending limited resources on stuff that doesn't directly drive customer adoption or satisfaction. So why do we do it? It's primarily meant to be more of defensive move to protect us from the patent trolls out there," Kim said. "Also the venture capital investors seem to view it as a box to check."

Why the Controversy?

Patents in the tech industry get a lot of heat. Plock said it's because there are many different viewpoints.

"For example, there are some who believe software and mathematics are one in the same," Plock said. "In much the same way as nobody can own the number 5, for example, there would be similarly no concept of software ownership according to this viewpoint."

Plock said there's another perspective in which software source code written in programming language is a form of expression protected by free speech. "According to this view, it would not be possible to write an ‘illegal' software application (such as one that would infringe a patent)."

Walsh said that while the patent system is intended to promote beneficial behaviors, "the system isn't perfect." Some of the controversy surrounding patents includes scenarios like patents being awarded to people who did not really innovate, or sold to people who might "abuse the threat of bringing a patent suit to collect settlements to which they are not entitled," he said.

Switching gears back to the opinions being expressed within the search marketing industry on this case, many have become vocal – especially since marketers know and use both BrightEdge and Searchmetrics in their day-to-day marketing.

"I would like to see companies compete on feature enhancements, price, and service, rather than compete with lawyers," said Goedegebuure.

Kim said he sees both sides of the patent issue, since he, himself, owns patents.

"On one hand, I view the expense as unnecessary overhead for a purely hypothetical issue, but on the other hand I can see how it could be disappointing if a company blatantly copied your intellectual property that you worked on for many years to develop. But even then, it would cost millions more in legal expenses and take years to prosecute, so chances are if you're threatening to sue, you're really just waving around a big stick and hoping to settle out of court. For now, this is how the system is, so I just roll with it, but overall I think the patent system particularly for software is pretty messed up."

Goedegebuure added that the way patent lawyers describe an invention is so broad, "you almost cannot understand what it is about." He said he filed a patent himself when he was at eBay, and "would challenge anybody to tell me what the invention is all about."

Remember when Business Wire was awarded a patent that covered press release SEO tactics? This is another prime example of where patents – and patent language – can be extremely confusing.

When the language is broad, said Goedegebuure, enforcing these types of patents "will give anybody working on SEO a very limited choice in which SEO system to work with. Companies being protected by patents could raise pricing, which will only allow large companies with budgets to be able to pay for such systems."

So, How do Patents Hold Up in Court?

In the case of BrightEdge v. Searchmetrics, for now, it's in the beginning stages as a complaint. A complaint is a way to start a lawsuit.

"To sue someone, you have to give them notice of what you think they did wrong and what you think you are entitled to recover because of it," said Walsh.

And to do this, all you need is a reasonable basis for making the allegations. Hard evidence doesn't need to exist at this point, because "the parties will develop evidence as part of the litigation process," said Walsh. "However, they have to believe that their patent is infringed and, if they don't have evidence of that, that that they will be able to develop that evidence during the litigation process."

In the documentation, BrightEdge is demanding a trial by jury on all the issues that are "so triable." Walsh said many patents are successfully enforced, sometimes for large sums.

"Depending on the size of the market covered by the patent, recovery in court could be millions of dollars or over a billion dollars. Though, not every suit results in an award of that magnitude.

Some patents, are found invalid. Others are found not to actually cover the product accused of infringement. In that case, there is no recovery. Additionally, the vast majority of patent cases settle on business terms that are not public," said Walsh.

What's Next?

When it comes to BrightEdge v. Searchmetrics in the battle of patent infringement, we're in a wait-and-see period. BrightEdge has indicated it doesn't comment on legal matters, while Searchmetrics told Search Engine Watch that it had not received any documents, nor had any legal department contacted them (as of March 6).

Searchmetrics also had this to say about the complaint from BrightEdge: "We neither have the need nor desire to copy their ideas or software, because Searchmetrics has been an innovator in the space since 2007 - with development beginning in 2005."

Source Link:-  Search Engine Watch