Thread regarding IBM layoffs

Latest update.

IBM fires back at e-commerce giant Chewy in patent lawsuit --
https://www.bizjournals.com/triangle/news/2021/04/22/ibm-fires-back-against-chewys-patent-suit.html

By: Lauren Ohnesorge – Senior Staff Writer, Triangle Business Journal
April 22, 2021

Two months after mega e-commerce pet retailer Chewy filed a patent lawsuit against New York technology giant IBM, Big Blue is firing back.

Chewy (NYSE: CHWY) had filed a federal lawsuit in New York against IBM (NYSE: IBM), asking a judge to declare it and not IBM as the holder of a group of patents. IBM shot back its answer and counterclaim this week, claiming it had tried to “negotiate an amicable resolution” when it uncovered the purported infringement, but that Chewy refused.

“In response, Chewy offered meritless excuses and refused to meet with IBM,” IBM claims in its answer. “The parties continued to exchange letters, with IBM repeatedly asking for a meeting with Chewy and repeatedly refusing. Then, without warning, Chewy brought this lawsuit against IBM.”

IBM said the case is the result of Chewy’s decision to "unilaterally cut off discussions and rush to the courthouse – rather than negotiating a license agreement.”

The computer services giant filed a counterclaim of its own against Chewy, claiming patent infringement. And it, too, is asking for a jury trial to decide the case. In its counterclaim, IBM notes it spends “billions of dollars on research and development to invent, market, and sell new technology.” And it expects a return on its investment, often in the form of a licensing deal.

“IBM is entitled to recover from Chewy the damages sustained by IBM as a result of Chewy’s wrongful acts,” IBM notes in its counterclaim, which was filed on April 19 by Karim Oussayef of Desmarais LLP.

Chewy is being represented by attorney Julie Bookbinder of Greenberg, Traurig LLP.

The companies haven’t commented publicly on the lawsuit.

IBM, which has a sprawling campus at Research Triangle Park, has earned a reputation over the decades for piling up patents – a reputation Chewy acknowledged in the lawsuit suit.

“While IBM has obtained thousands of patents over the past 20 years, it is widely accepted that IBM does not itself make or sell any products or services covered by the vast majority of those patents,” the lawsuit says. “Instead, IBM has an army of lawyers who try to patent just about anything … and then aggressively seeks to license those patents.”
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IBM has topped the list of most U.S. patents granted for the past 28 years, and RTP has been a major contributor.

In the lawsuit, Chewy claims IBM had said damages and future royalties could exceed $83 million, but said it would settle the dispute if Chewy paid $36 million in exchange for a cross-license. But Chewy, which did $6 billion in revenue in 2020, declined the offer, instead filing the lawsuit before IBM could sue.

Chewy is headquartered in Florida but has been expanding in North Carolina. The retailer has opened a $55 million, 1,200-job distribution center in Salisbury in Rowan County.

IBM, in addition to operating its stand-alone campus in RTP, owns Red Hat, which is based in downtown Raleigh.

Use it or lose it.

Perhaps taxing unused patents would spur more innovation by forcing use or open sourcing.

The world is accelerating and betting on "economic moats" and closed systems is outdated. The future is open source.

This most likely is factoring intoIBM’s thinking

https://finance.yahoo.com/news/ibm-patent-income-slips-companies-110025172.html

How sad for IBM... This patent business in the US needs to be totally reformed.