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On behalf of Kadish & Associates Law Group posted in Business Litigation on Friday, May 20, 2016.

Arizona readers who follow the lawsuits filed by some of America’s largest companies might be aware of the recent flood of patent infringement suits taking place in the technology industry. IBM and Groupon are the latest to engage in this type of business litigation. The cases these two companies have filed against each other could go on for some time since it appears that neither of them is willing to budge from their current positions.

IBM filed first, alleging that Groupon infringed on some of its patents. The technology giant claimed that it attempted to reach a licensing agreement with the e-commerce giant, but that the negotiations never bore fruit. Therefore, it filed its lawsuit seeking royalties, among other things.

After that suit was filed, Groupon countered with one of its own that also alleges patent infringement. Comments made by Groupon about IBM indicate that the prospect of settlement might not even be on the table at this time. In fact, both sides could be gearing up for quite a contentious court battle.

Both companies do have a lot at stake in this litigation. Groupon’s stock has fallen well below its 2011 high of $26 per share, which was when the company made its initial public offering. As for IBM, the technology giant cannot seem to recapture the success it had in the 1990s before the internet exploded.

Arizona business owners might be able to empathize with falling revenues and/or stock prices. If there is a potential source of revenue such as uncollected royalties from another company’s use of a patent, it might be worth it to file business litigation in order to pursue receipt of those payments. However, before any litigation is filed, it would be beneficial to be sure that the cost of litigation is worth the potential risks.

Source: Fortune, “Groupon Goes to War with IBM Over Software Patents“, Jonathan Vanian, May 9, 2016