IBM and Amazon.com have settled their patent disputes, reaching a long-term cross-licensing arrangement. Under the cross-license, Amazon will pay an undisclosed sum to IBM and the companies will exchange licenses for some of their technologies.
IBM sued first, and twice, in the Eastern District of Texas, claiming key technology in Amazon’s retailing website infringed five IBM patents related to product recommendation features as well as advertising and data storage. Amazon countersued, denying the IBM allegations and charging that IBM’s products such as WebSphere infringed five of Amazon’s patents.
IBM’s suit alleged that the two companies had been attempting to reach a resolution for four years before it commenced the first suit in October 2006.
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