
Steve of La Canada, CA on Feb. 11, 2001
As a Director and Officer of the Online Auction Users Association, I am involved in online auction issues daily. Our association represents some 2,400 online auction members, many of whom use eBay to sell for their livelihoods. The purpose of this letter is to make you aware of a recent action by Blackthorne Software, an action that adversely and perhaps illegally affects tens of thousands of online auction users. Bear with me while I summarize.
Blackthorne Software makes auction management software. This allows online auction sellers to efficiently create and list auctions, and manage post-auction tasks. Blackthorne became the industry leader about 2 years ago, with many thousands of customers. They sold auction software packages, including upgrades and support, for their two products at prices of up to about $200 each. Blackthorne regularly produced patches and upgrades to these products, as is common in the industry, to keep them functional as eBay made changes in the functionality of their auction site.
About a year ago, eBay purchased the Blackthorne company. Aside from the fact that eBay scuttled Blackthorne's plans to make their software cross-platform compatible (meaning able to list on Yahoo and Amazon auctions), things continued much as before.
On February 6, 2001, John Slocum, the President of Blackthorne, announced that previous purchasers of the software would henceforth have to pay a "subscription" fee of $15.99 or $4.99 per month, in order to continue using the software they had already purchased. Essentially, eBay/Blackthorne is trying to rent software to folks that already purchased it.
Here's John's announcement: http://www.blackthornesw.com/bthome/SALetter.htm
Understandably, the users are outraged. They recognize this as wrong, and there is a groundswell of interest in a class action lawsuit to protect consumers from abuse by eBay/Blackthorne.
Folks have yet to be damaged, I guess -- not sure how that would work in a class action. But this can't be legal -- eBay is rapidly becoming a monopoly a la Microsoft, and they have very deep pockets. Somebody needs to take a stand, and this seems like it might be the time.
Consumers were bait-and-switched into paying up to $200 for a program, that eBay/Blackthorne NOW wants $2,000 for over the next 10 years, or threatens to effectively disable it.