Groupon to pay IBM $57 million to settle US patent dispute
NEW YORK: Online marketplace Groupon Inc on Monday said it would pay $57 million to International Business Machines to settle an intellectual property dispute. IBM’s lawsuit, filed in US court in Delaware in 2016, alleged Groupon used IBM’s patented ecommerce technology without authorisation.
A jury sided with IBM in July, ordering Groupon to pay $83 million in damages.
The settlement agreement also included a longterm patent cross-licence agreement between the companies.
William La font aine, IBM’s general manager of intellectual property, said in a statement the deal demonstrates the value of the intellectual property the Armonk, New York-based company derives from its annual investment of more than $5 billion in R&D. During the trial, IBM had asked the jury to award $167 million in damages, saying it developed widely licensed technology crucial to the development of the internet.
A jury sided with IBM in July, ordering Groupon to pay $83 million in damages.
The settlement agreement also included a longterm patent cross-licence agreement between the companies.
William La font aine, IBM’s general manager of intellectual property, said in a statement the deal demonstrates the value of the intellectual property the Armonk, New York-based company derives from its annual investment of more than $5 billion in R&D. During the trial, IBM had asked the jury to award $167 million in damages, saying it developed widely licensed technology crucial to the development of the internet.