Groupon to Pay $57 Million for IBM Patent Infringement

by: The Knowledge Group

October 30, 2018


Groupon put up a good fight, but it will have to pay IBM a $57 million under a settlement.

For years, IBM has accused Groupon Inc. of infringing on innovations — including a sign-in method dating back to the dawn of the internet. In July a jury awarded IBM $83 million in the case. IBM initiated the suit in March 2016, encompassing both a patent infringement claim and the cost of licensing IBM e-commerce innovations in the future.

Groupon publicly pondered petitioning for a reduction in the payment, as it believes some IBM patents are too dated to count as valid, and others fail the test of “non-obviousness” in the Patent Act.

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IBM — which, for its part, had asked the court to double the jury’s award and require Groupon to pay $167 million in damages — finally settled, in order to end the case and work with Groupon through a cross-licensing agreement. IBM might also add Groupon products to its corporate benefits package.

New York-based IBM holds more than 45,000 U.S. patents, putting it ahead of any other business in this respect. It earns more than a billion annually in licensing fees to tech giants such as Facebook, Twitter, LinkedIn, Google, and Amazon.

Patent Case Law Evolves

As the number of patent infringement cases, rejection appeals, and reexamination decisions continue to rise, the patent law continues to evolve. What were the main changes in 2018? What do we expect from the Patent Trial and Appeal Board in 2019?

The Knowledge Group, in webcast, now available on-demand, providing expert analysis of major cases and changes enacted by the PTAB. Help your business observe common red flags. Pick up useful strategies in this changing regulatory area. Attend PTAB Patent Proceedings: Practical Tips and Strategies to Consider broadcast Tuesday, October 30, 2018. The webcast is eligible for Continuing Legal Education (CLE) credit and lasts one hour.