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IBM Wants $167 Million From Groupon Over Alleged Patent Infringement

On Monday, IBM asked a jury to award the company $167 million in a lawsuit against deals site Groupon for using patented technology without authorization. The patents involve e-commerce technology that had already been licensed to Amazon, Facebook, and Alphabet for between $20 million and $50 million per company. “Most big companies have taken licenses to these patents,” IBM’s lawyer, John Desmarais, said. “Groupon has not. The new kid on the block refuses to take responsibility for using these inventions.” Reuters reports: Groupon lawyer J. David Hadden argued that IBM was overreading the scope of its patents and claiming ownership of building blocks of the internet. “A key question for you in this case is whether these patents cover the world wide web,” Hadden told jurors. “They do not and that is because IBM did not invent the world wide web.”

An IBM executive is expected to testify during the two-week trial about licensing deals with technology companies like Amazon and Google, providing a rare glimpse into IBM’s efforts to derive revenue from its large patent portfolio. The Armonk, New York-based company invests heavily in research and development and has secured more U.S. patents than any other company for the past 25 years.


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