He's referencing that other ecommerce sites (e.g. walmart) couldn't just say "oh, one click buying is a good idea, and an obvious one, so we'll implement it too". By having Apple pay significant money for right to use the patent, it adds validation that it isn't a frivolous patent, and actually a useful, non-trivial, non-obvious solution which warrents being licenced.
It gave Amazon much better ground to file patent infringement against any competitor that attempted a 1 click checkout solution without licensing the patent, both improving chance of further licensing and reducing the chance competing ecommerce platforms would implement the feature without licensing it through Amazon.
So, when Apple actually paid money to Amazon, what occurred to me at the time, was that Apple had in a single stroke both added some legitimacy to the Patent, and probably got a discount on the deal because they were the initial customer. It's unclear whether the one-click behavior on IOS made use of any the processes described in the 1-click patent, but, at the very least, it didn't hurt that Apple had it in their back pocket.
All in all I think it was a win-win scenario for both parties.
The 1-click patent didn't have a great deal of credibility at the time. Many people in the tech industry were railing against Amazon and 1-click. It seemed like such a stupid patent and I think a lot of people didn't expect it to hold up.
Apple launched the iTunes store with $0.99 mp3's during the same period and the whole thing hinged on 1-click shopping. You could click a button to preview and there was one right next to it that would buy the song. No confirmation screens or checkout process. Downloaded and added to your library. It was so easy and people were spending a fortune on there because there was nothing else like it. Keep in mind this is one the heels of the decline of Napster and other mainstream P2P apps. People were being ratted out by their ISPs, sued and settling for $3000 for downloading some crummy song. Here you could do it legally and inexpensively and with a great UX because of 1-click. And for the first time you could buy a single song instead of an entire album. Prior to that, we had "singles" that contained a radio song from the album and a couple b-sides for like $5-8.
Apple had to launch iTunes with 1-click for it to be successful. The $1M license fee cost far less than the inevitable lawsuit would have. They made a fortune with iTunes and used it to enter new product categories. You could argue that that was one of the pivotal moments that transformed the company into what it is today. That licensing fee was highway robbery.
You also have Amazon who, at the time, had an outstanding selection, the best prices, fast handling times, reliable shipping and the most friction free buying process anywhere. Many retail sites didn't even have user accounts back then. You would enter your info with each order. The ones that did have accounts still made you click through several screens to place an order.
Amazon's end of the deal is they got paid $1M to not have to sue anyone (and possible lose) and have their ridiculous patent become credible overnight. The result was they maintained their superior online shopping experience by preventing others from mimicking it and leveraged it to become the beast they are today.
Also, it would be nice anyway to have an adjustable brief cooling off timer on an order, so is a nice implementation idea regardless of the one click patent.
Everyone has it now. I wonder if they got as good a deal as Apple did. We all expected someone big to fight that patent. Apple basically said “f- this” and took the easy way out even if it meant everyone else would get screwed. One of the few times Apple had first mover advantage.
As far as design patterns for purchasing go, I would say it is probably more optimal than a simple one-click, if optimising for both the buyer and seller's interests. One-click is more optimal if you are only optimising for the seller.
As a rule of thumb, people trying to sell you a thing are unlikely to give you extra time past the "I need to buy this" impulse to decide not to buy it.
In the EU, the consumer has the right to cancel any order or return any purchase, for any reason, within 14 days.
So in the EU, you already have that extra time in law.
Given that, from a retailers perspective, having a timer could actually make commercial sense, as the cost from lost sales could be balanced out by a reduction in cancelled orders and returns.
It may make commercial sense anyway, out of customers liking the feature and that translating into goodwill over time, but that would be much harder to put a figure on.
I'm sure I've made plenty of purchases where a big ticking "Are you sure you wanted to do that, Dave?" undo button might have worked but it wasn't worth it for me to go through the effort to return or refund.
I suspect a lot of deals are done this way. Joe talks to Kevin and legal sets it up. Done in a heartbeat, just in case. Whether it worked out or not...who knows but Apple went full speed ahead selling and didn't end up in court battles. (yeah, they might have won but it's just $1 mil)
We don't know if this license helped Apple sell so many products that it paid back the investment.
For Amazon it obviously worked out on two fronts, since they also got paid 1M. Unless you mean that this has to be weighed against lost Apple product sales on Amazon? Were Apple products even for sale on Amazon at the time?