IBM Sues Amazon Over Patent Infringement

Amazon has built its business model on the use of IBM's patents, knowing its business was covered by and infringing IBM's patents. This assertion is based on court documents filed by IBM, which claims that Amazon has used its patented technologies without permission. The lawsuit seeks royalties on billions of dollars in revenue.

Key Takeaways:

• IBM, the world's top patent holder, has filed two lawsuits against Amazon alleging patent infringement.
• The lawsuits claim that Amazon has built its business model on the use of IBM's patents without permission.
• IBM is seeking royalties on billions of dollars in revenue generated by Amazon's use of its patented technology.
• The patents in question include one called "Ordering Items Using an Electronic Catalog" and were filed between 1988 and 1992.
• Many companies have licensed these patents, IBM said, describing itself as having "a long history of licensing its patents covering e-commerce on fair terms."

Statistics:

• IBM has more than 40,000 patents worldwide.
• The patents in question are among the over 40,000 patents IBM has worldwide.
• Amazon has generated billions of dollars in revenue since 2004.
• The "one-click" patent is being re-examined by the U.S. Patent and Trademark Office.

Sources:

• "IBM Sues Amazon Over Patent Infringement" by DAVID HO, New York --- IBM Corp.
• "Amazon Builds Business Model on IBM's Patents, Lawsuit Says" by Bloomberg News, May 2013.