Amazon.com, IBM Settle Patent Dispute

Amazon.com will pay an undisclosed sum to IBM to settle patent disputes between the two companies.

Online retailer Amazon.com has reached a settlement with IBM in the current patent dispute between the two companies—a settlement which has Amazon.com forking over an undisclosed amount to the technology giant in exchange for a long-term patent cross-licensing agreement.

“At IBM, we place a high value on our IP assets and believe this agreement substantiates the value of our portfolio,” said Dan Cerutti, IBM’s General Manager of Software Intellectual Property, in a statement. “We’re pleased this matter has been resolved through negotiation and licensing. We look forward to a more productive relationship with Amazon in the future.”

In October 2006, IBM sued Amazon.com alleging central features of Amazon.com’s Web operations—like customizing links, displaying customized ads, and ordering items from an electronic catalog—violated five IBM patents. Amazon countersued in December, saying IBM’s WebSphere application server, among other things, infringed on five patented Amazon technologies.