IBM Files Patent Suits Against Amazon

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International Business Machines Corp. has sued Amazon.com Inc., contending the Internet retailer is using technology developed by IBM to run major elements of its business without the appropriate licenses.

IBM, which filed two lawsuits against Amazon on Monday stemming from five patents, is seeking injunctions to stop Amazon from using the technologies. IBM also is seeking damages in the cases that it said “could be hundreds of millions of dollars.”

The IBM patents cover technologies for Web site navigation, customer purchasing recommendations, interactive advertising, and data storage on networks.

An Amazon representative didn’t respond to a telephone call seeking comment.

IBM executives lent some credence to that view Monday. Spokesman Edward Barbini said IBM has attempted to contact Amazon more than a dozen times over four years to resolve the issue, but “Amazon.com has refused each time.”

IBM said many other companies have paid for licenses to use the patents, although IBM declined to name any. Still, Pacific Crest Securities analyst Steve Weinstein said the length of the controversy could work in Amazon’s favor.

“The original notification apparently goes back to 2002, so we’re not talking about cutting-edge stuff,” Mr. Weinstein said.


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