Amazon & IBM settles their Patent Infringment Law Suits
Patent infringement- Amazon vs. IBM
Online retailer Amazon.com and IBM have settled all their
patent-infringement law-suits and signed a long-term Patent
Cross-License Agreement. Under the Agreement, Amazon.com will pay IBM
an undisclosed amount of money, and each company will let the other use
some of its technology.
Amazon.com spokeswoman, Patty Smith said that by this settlement payout
will not affect financial results for the company’s current second
quarter, since we have already factored the money into its financial
guidance for full fiscal year.
The dispute arose when in October 2006,Armonk, N.Y.-based IBM alleged
in two lawsuits that key components of Amazon.com’s retailing websites
were developed and patented by IBM. The IBM, however accused Amazon.com
of infringing upon five patents related sites which recommends products
to customers and advertises as how to store data. In December,
Amazon.com countersued IBM, denying the allegations and charging it
with violating five of Amazon’s patents for ventures including IBM’s
WebSphere business software.
In a brief joint statement released on Tuesday, the companies did not
indicate how they settled their dispute. Scott Hayden, Amazon.com’s
vice president of intellectual property, called IBM’s patent portfolio
“the largest and strongest in the IT industry” and said that the use of
IBM’s Web technology patents “gives us greater freedom to innovate for
our customers.” In reply, Dan Cerutti, IBM’s general manager of
software intellectual property added: “We’re pleased that this matter
has been resolved through negotiation and licensing peacefully and look
forward to a more productive relationship with Amazon in future.”
