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IBM wants $167M from Groupon over alleged patent infringement

19 July, 2018, 06:39 | Author: Rafael Roberts
  • IBM is displayed on a screen on the floor of the NYSE in New York

John Desmarais, a lawyer for IBM, said Chicago-based Groupon arrived "relatively late" to e-commerce and piggybacked on existing technologies.

IBM's lawyer reportedly said in federal court in DE that Groupon infringed patents involving e-commerce technology that had already been licensed to Amazon, Facebook and Google for between $20 million and $50 million per company. Groupon has refused to pay for a license because they believe that IBM is claiming ownership of the building blocks of the internet.

IBM contends that firms such as Amazon, Facebook and Alphabet are all said to make use of the same software, paying between $20 and $50m each for the right to do so but Groupon has challenged this analysis, arguing that the computer manufacturer is overreaching the scope of its patents.

For the record, IBM has more USA patents from past 25 years than any other company because of its large investments in research and development.

A key question in this case is whether these patents cover the world wide web. IBM uses its "huge stock" of patents "as a club" to ensure that any company doing business on the web must go through IBM, he said.


Incidentally, IBM had already sued Groupon in 2016 for violating four of its patents. Out of these four patents, two were issued for Prodigy, an online service that offered access to a broad range of networked services, developed by IBM and many others.

Hadden countered that IBM was unreasonably seeking money from every significant internet company. According to Bloomberg, IBM has been winning the largest number of patents in the United States every year over the past 25 years.

We are here because IBM has another business that IBM does not talk about in its commercials.

As reported by Reuters, IBM has accused Groupon of failing to license technology and intellectual property which provides the foundation of e-commerce.

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