IBM looks to sue Groupon for $167m over alleged patent infringement

Doris Richards
July 19, 2018

IBM says it's time for the "new kid on the block" to pay up.

The case is being heard at a federal court in DE where the jury is being asked to consider whether they agree with IBM's contention that Groupon had employed IBM's e-commerce technology without paying a license fee.

IBM has demanded a settlement of $167 million in its latest lawsuit at USA federal court, alleging that e-commerce marketplace Groupon is using IBM's technology without authorization, reports Reuters.

Many companies, including Amazon.com Inc. and Facebook Inc., have bought licenses to use the company's patented technology, while Groupon hasn't, he said.

However, Groupon say IBM is wrongly interpreting the scope of its patents and claiming ownership over basic technology which is vital for the Internet to function. IBM had no choice but to sue Groupon after it refused to negotiate a licensing deal, he said.


Groupon didn't immediately respond to a request for comment. 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.

Updates, 12:06 p.m. PT: Adds IBM spokesperson statement. He was straightforward: "A key question for you, in this case, is whether these patents cover the world wide web". "We are here because IBM has another business that IBM does not talk about in its commercials", he said.

During the two-week trial, an IBM executive is expected to testify about licensing deals with tech companies like Google and Amazon, providing information about IBM's efforts to derive profits from its large patent range.

Hadden also accused the tech giant of using the patents it owns to squeeze money out of other companies. Meanwhile, Groupon accuses that IBM uses its huge stock of patents as a club to get money from other companies.

Other reports by Iphone Fresh

Discuss This Article

FOLLOW OUR NEWSPAPER