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IBM and Groupon file business litigation against each other

Technological advances happen at a rate that many companies here in Maryland and elsewhere are unable to keep up with on their own. In order to remain current and profitable, companies use technology patented by other companies. If the company using the technology does so without the permission of the company holding the patent, business litigation could be filed.

Patent infringement, as it is called, is at the center of the litigation between IBM and Groupon. Back in March, IBM filed a lawsuit alleging that Groupon used its patented technology from the 1980s. Recently, Groupon filed a lawsuit alleging that IBM used its patented technology that allows merchants to offer customers certain products and services based on social media usage and geographical location.

IBM claims that Groupon's suit has no merit and was only filed to deflect attention from the fact that it infringed on IBM's patents. IBM says that it attempted to come to some sort of usage agreement with Groupon, but those talks failed, which is why the lawsuit was filed. Groupon says that IBM -- which it characterizes as a dial-up dinosaur -- is attempting to resurrect itself through the use of up-to-date technology created by others.

Regardless of how this business litigation is resolved, it will most likely be a costly and time-consuming effort if the parties are unable to come to some agreement on their own. Many Maryland companies are aware that the decisions to engage in what could be protracted litigation can actually be counterproductive for a business. Therefore, the pros and cons of doing so must be weighed carefully at different points during the process to ensure that it is still worthwhile.

Source: finance.yahoo.com, "Groupon sues 'once-great' IBM over patent", Jonathan Stempel, May 9, 2016

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