IBM Corp. v. Groupon, Inc.
Desmarais LLP Secures $82.5M Patent Win for IBM Over Groupon at Trial
Desmarais LLP led IBM to an $82.5 million victory over Groupon in a recent trial in Delaware federal district court. The jury found that Groupon had infringed on all four of IBM’s e-commerce patents.
The verdict on July 27 also found willful infringement by Groupon on all four patents. The finding allows IBM to pursue enhanced damages that are up to three times the amount awarded as well as attorneys’ fees.
“The verdict is a vindication for IBM and a validation of the strength of its e-commerce portfolio,” John Desmarais, founding partner of Desmarais LLP and lead attorney for IBM, told Law360.
The four patents were originally created for Prodigy, an IBM-affiliate that was a forerunner of the modern internet in the ‘80s and ‘90s and had the industry’s first graphical user interface. Several major tech companies – including Amazon, Google, and Twitter – have already paid licensing fees for these patents.
IBM invests about $6 billion annually in research and development and relies on patents to protect its innovations. “The verdict represents a recognition by jurors that IBM should be compensated for its intellectual property,” Desmarais said.
“This is a significant moment for IBM and patent holders throughout the industry; it highlights the fact that the judicial system continues to value and protect innovation and investment,” Desmarais added. “We are confident the rights of patent holders will remain a priority for judges and juries in the future.”
Partners Karim Oussayef and Laurie Stempler and associates Edward Geist, Robert Harrits, Brian Matty, Michael Matulewicz-Crowley, and Kevin McNish were also part of Desmarais LLP’s team representing IBM.
1. "IBM Wins $83 million from Groupon in internet patent fight" - Reuters, July 27, 2018
2. "IBM Wins $83 Million From Groupon In E-Commerse Patent Fight" - Bloomberg, July 27, 2018
3. "BREAKING: Groupon Ordered To Pay IBM $82.5 In Web Patent Case" - Law360, July 27, 2018
4. "IBM Wins $82.5M Verdict In Groupon Infringement Case" - Law.com (Delaware Business Court Insider), July 27, 2018