Groupon will pay IBM $57 million to drop a long-running patent dispute between the two companies. The initial lawsuit in 2016 had IBM claiming that e-commerce marketplace Groupon willfully infringed upon their patents and continually refused to enter any licensing discussions of the technologies. The technologies include a single sign-on patent and a patent that is a precursor to the Internet; as well as patents for showcasing applications and ads with lower server strain.
IBM won this most recent patent dispute after a two-week trial – being awarded $83 million. This is roughly half of what they originally sought, and Groupon received an additional $26 million discount by entering a licensing deal with IBM. IBM initially requested $167 million in damages over the alleged infringement as they claimed Groupon’s business model was built from their technologies. Groupon said the technologies they used are part of the modern Internet.
Other tech companies such as Google, Facebook, and Amazon have licensed the same patents – paying between $20 million and $50 million in individual licensing agreements.