IBM has actually won $82.5 m in a legal battle versus Groupon over e-commerce patent infringement.The verdict, provided
by a jury at the end of recently after a 10-day trial, was that Groupon had wilfully infringed a number of IBM’s patents.Because of the judgment that it was wilful, the online coupon
biz was handed a larger charge– although it fell broad of the$167m damages IBM had sought.The match, originally submitted in 2016, declared that Groupon had actually infringed four of IBM’s e-commerce patents, a few of which go back to the early days of computing.They consist of 2 patents established in the 1980s for IBM’s pre-internet Prodigy online communication service, which provided news, weather and sports reports.A third patent was developed as part of the firm’s efforts to protect state info in internet communications, and the last patent in match connects to single-sign-on technology.In its preliminary filing (PDF)IBM said that Groupon had actually utilized the technology claimed by these patents”to implement online local commerce markets to link merchants to customers by providing products and services at a discount rate”. Big Blue said it had tried– however stopped working– to negotiate a licence arrangement with the e-coupon biz for three years
, which Groupon had “chose not to take part in any significant discussions”about the situation.Licensing is a huge part of IBM’s income stream, with licensing of IP and home producing$1.19 bn for the company in(PDF). During the trial, IBM’s legal representative John Desmarais stated that Amazon, Facebook and Google each paid in between$20m and $50m to certify the innovation explained in the patents
in concern.”Most big companies have taken licenses to these patents,”Reuters priced quote him as stating.”Groupon has not. The new kid in town chooses not to take obligation for using these inventions.”Groupon had countered that some of the patents should not have actually been granted as they explain apparent ideas, which the company was using them to make claims for principles of the web.”A
key question for you in this case is whether these patents cover the web,”Groupon lawyer J David Hadden is reported to have actually said.”They do not which is because IBM did not develop the world wide
web.”In a statement released after the verdict, Groupon said that it continued to think it didn’t infringe on valid IBM patents, and that any worth they did have was smaller sized than that decreed.