Groupon Sues 'Once-Great' IBM Over Patent

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By Reuters | Updated: 10 May 2016 09:42 IST
The online marketplace Groupon Inc has sued IBM Corp, accusing it of infringing a patent related to technology that helps businesses solicit customers based on the customers' locations at a given moment.

Groupon filed its lawsuit on Monday with the federal court in its hometown of Chicago, two months after IBM accused Groupon of patent infringement in a separate lawsuit.

"IBM is trying to shed its status as a dial-up-era dinosaur" by infringing the rights of "current" technology companies such as Groupon, according to Groupon spokesman Bill Roberts.

Doug Shelton, an IBM spokesman, said: "This counter suit is totally without merit." IBM's full name is International Business Machines Corp.

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The latest lawsuit concerns IBM's WebSphere Commerce platform, which Groupon said lets merchants send messages to customers with GPS-enabled devices based on their real-time locations, and their use of social media including Facebook.

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Groupon said the platform infringes a December 2010 patent, and that it deserves royalties based on the "billions of dollars" of revenue that Armonk, New York-based IBM has received through its infringement.

"IBM, a relic of once-great 20th Century technology firms, has now resorted to usurping the intellectual property of companies born this millennium," Groupon said in its lawsuit.

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On March 2, IBM accused Groupon in a federal lawsuit in Delaware of infringing four patents, including two related to Prodigy, a late-1980s forerunner to the Internet.

"Over the past three years, IBM has attempted to conclude a fair and reasonable patent license agreement with Groupon, and we are disappointed that Groupon is seeking to divert attention from its patent infringement by suing," Shelton said.

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© Thomson Reuters 2016

 

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Further reading: Facebook, Groupon, IBM, Internet, Laptops, PC
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