IBM sues Groupon for $167 million over patent infringement

On Behalf of | Jul 25, 2018 | Business Litigation |

New Jersey residents who are interested in patent litigation might want to learn about a case that was filed by IBM against Groupon. The lawsuit seeks $167 million in damages for Groupon allegedly using IBM’s patented e-commerce technology without first seeking and obtaining a license from the company.

Other companies, including Google, Amazon and Facebook, have obtained the licenses from IBM to use the technology and have paid between $20 and $50 million. Four patents are at issue in the case, including a patent for Prodigy, an online service that was popular in the 1980s and 1990s.

Groupon stated that IBM is trying to claim that it holds a patent to the internet and states that the company did not create the world wide web. It argues that IBM’s patent claims are an attempt by the tech giant to try to assert ownership of a part of the internet itself. IBM filed a lawsuit against Groupon in 2016 for patent infringement.

When companies believe that others have infringed on their intellectual property, business litigation may be necessary if the issues are unable to be resolved through negotiation. Companies that are currently involved in disputes over their own intellectual property might benefit by seeking legal guidance from experienced intellectual property lawyers who may be able to resolve their clients’ disputes through careful negotiations. If an accord cannot be reached through that or another alternative dispute resolution method such as mediation, legal counsel may find it advisable to file a formal lawsuit and provide courtroom advocacy for their clients.

Source: ZD Net, “IBM seeks $167 million from Groupon in patent dispute“, Charlie Osborne, July 17, 2018

FindLaw Network
Headshot Of Lawrence N. Lavigne