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9 August 2018Patents

Judge ‘inclined’ to deny any post-trial motions by IBM and Groupon

Post-trial motions that follow a decision to award IBM $82.5 million in damages from Groupon are likely to be denied, according to a letter authored by District Judge Leonard Stark and released yesterday.

Technology company IBM filed its patent complaint against online deals website Groupon in March 2016. Last month, a jury at the US District Court for the District of Delaware found that Groupon had wilfully infringed four of IBM’s US patents (5,796,967; 5,961,601; 7,072,849; and 7,631,346).

The patents cover online advertising and ways of allowing web users to connect to an internet provider. Groupon used the proprietary technology to connect merchants to consumers on the platform www.groupon.com.

After a two-week trial in Delaware, Groupon was ordered to pay IBM the sum of $82.5 million.

On August 3, IBM and Groupon filed a joint status report on the case. Stark responded by writing the parties a letter to let them know his “present impressions” on their potentially forthcoming motions.

The letter explained that Groupon is expected to file motions for a new trial and judgment as a matter of law, and IBM is likely to file motions for enhanced damages.

“With respect to Groupon’s anticipated motions, my inclination is to deny all of the motions for judgment of non-infringement, invalidity, and no damages with respect to the asserted claims,” the judge warned.

He said he is also inclined to deny any motion seeking a new trial.

With respect to IBM’s potential motions, Stark said that his “present inclinations” are to deny a motion for enhanced damages. Stark did not address IBM's other expected motions, which relate to interest and attorneys' fees, among other things.

Stark also rejected Groupon’s argument that the jury’s decision should be entered as an interim judgment, as there is “no reason” to do so. The judgment against Groupon, and award of $82.5 million in damages, was also entered yesterday.

The judge said that, as suggested by IBM, all post-trial motions should be filed within 28 days of judgment being entered. Any opposing briefs must be filed within 21 days after that, and a further allowance of seven days will be given for responses.

Stark also provided the parties with page limits for their briefs. He warned that the post-trial briefing should not be “particularly lengthy”, so he does not intend to let the matter “drag out very long”.

The judge concluded by advising that his present views are “merely inclinations” which may change upon reviewing any motions.

Speaking to WIPR, a spokesperson for IBM said that the company intends to file all of the motions that it notified the court of in the joint status report, including a motion for enhancement of damages.

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More on this story

Patents
30 July 2018   Groupon has been ordered to pay technology company IBM $82.5 million for wilful patent infringement.
Patents
28 September 2018   IBM has asked a US judge to double the patent damages owed by Groupon from $82.5 million to $165 million.