IBM settles patent suit, sues Expedia over same patents
Technology multinational IBM settled a patent dispute with a company that manages travel websites, one day before suing US travel company Expedia over the same four patents.
In 2015, WIPR reported that IBM had taken action against The Priceline Group, which manages travel websites such as priceline.com, and had alleged infringement of four patents.
The patents asserted include two that were issued in the late 1990s: US numbers 5,796,967 and 5,961,601. The ‘967 patent tracks previous conversations online between a web user and a merchant, and the ‘601 patent covers technology related to web performance.
IBM also claimed Priceline had infringed US number 7,072,849, issued in 2006, which covers technology related to online advertising, and number 7,631,346, which covers technology making it easier for web users to connect to an internet provider.
On Thursday, December 28, IBM announced it had resolved the litigation.
As part of the settlement, the parties will obtain patent cross-licences to each company’s worldwide patent portfolio.
William Lafontaine, general manager of IP for IBM, said: “IBM takes pride in its reputation and track record for innovation. This agreement further demonstrates the value of our intellectual property that results from this innovation.”
On Friday, December 29, IBM sued Expedia and its subsidiaries (other travel websites) at the US District Court for the District of Delaware.
“Defendants have built their business model on the use of IBM’s patents. Moreover, despite IBM’s repeated attempts to negotiate, defendants refuse to negotiate a licence,” said the claim.
IBM alleged that the mobile applications used by Expedia and its subsidiaries are running on the technology claimed by the patents.
The technology company added that it has tried to work with Expedia in an effort to negotiate a licensing agreement since 2014.
IBM is seeking an injunction against all of the companies, triple damages and a jury trial.
A spokesperson for IBM said that the company invests more than $5 billion annually in research and development and relies on its patents to protect that investment. “Over the past three years, IBM has attempted to conclude a fair and reasonable patent licence agreement with Expedia. Our intent is to reach a fair conclusion under which Expedia acknowledges its obligation and compensates IBM for the use of IBM's patented technology,” they added.
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