Tuesday, August 14, 2018

IBM Wallops Groupon With a Vintage Patent -- Bloomberg

"③ The Trial
In late July, two years after the case was filed, the two combatants engaged in a two-week trial. IBM’s killer point was that a raft of other companies were paying fees to access these same patents: Amazon.com, $49.8 million; Google, $35 million; and Twitter, $36 million. Its lawyer told the jury that Groupon, “the new kid on the block,” was refusing to “take responsibility for the technology it’s using.” The jury needed only six hours to agree, awarding IBM half of the damages it claimed: $82.5 million.

④ The Result
Groupon has said it’s reviewing its options. The chances of winning on appeal are slim—better to pay up and move on. Lucky for Groupon, the judge has said he’s unlikely to triple the payout. As for IBM, one suspects the trial was more about sending a message than reaping a financial reward. IBM has 45,000 patents, which generated $1.19 billion of its $79.1 billion in revenue last year. If you’re not willing to pay up when IBM comes calling, it won’t hesitate to go to court."
IBM Wallops Groupon With a Vintage Patent -- Bloomberg

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