IBM looks to sue Groupon for $167m over alleged patent infringement | City A.M.

IBM is suing coupons site Groupon for $167m over allegations the company used patented technology without permission.

IT giant IBM argues that Groupon infringed its patent by using e-commerce technology which it had licensed to other companies including Amazon, Facebook and Google parent firm Alphabet for between $20m and $50m each.

Lawyer John Desmarais, representing IBM, told a federal court In Delaware: “Most big companies have taken licenses to these patents. Groupon has not. The new kid on the block refuses to take responsibility for using these inventions.”

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However, Groupon say IBM is wrongly interpreting the scope of its patents and claiming ownership over basic technology which is vital for the Internet to function.

Groupon’s lawyer David Hadden said:

A key question in this case is whether these patents cover the world wide web. They do not and that is because IBM did not invent the world wide web.

The trial is expected to last two weeks as IBM executives go into detail about the company’s licensing agreements with the likes of Amazon and Google.

IBM sued Groupon back in 2016 over the company infringing four patents.

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