🎯 IBM sues Take-Two for patent infringement over internet technology
On September 30, IBM filed a lawsuit against video game company Take-Two Interactive in Delaware federal court, accusing it of infringing on several internet-related patents. According to IBM, Take-Two's game launcher and titles from its popular NBA 2K, Grand Theft Auto, and Red Dead Redemption series violate patents covering web advertising, virtual worlds, and user authentication.
Representatives for Take-Two, as well as attorneys and spokespeople for IBM, have not yet responded to requests for comment on the lawsuit. IBM, based in Armonk, N.Y., has previously pursued infringement lawsuits against other companies over similar technologies, some of which were developed for its 1980s internet service, Prodigy. In March, IBM resolved a related case with pet food retailer Chewy, and in June, it reached an undisclosed settlement with Japanese tech firm Rakuten. In 2018, online marketplace Groupon settled a lawsuit with IBM for $57 million, following an $83 million jury verdict in IBM's favor.
Earlier this month, IBM secured a $45 million jury verdict in Delaware against mobile game maker Zynga for infringing related patents. Zynga was acquired by Take-Two in 2022. In its lawsuit against Take-Two, IBM stated that discussions about the alleged infringement have been ongoing since 2021, and that IBM had "invited Take-Two to engage in meaningful discussions towards a licensing resolution" earlier this year. However, according to IBM's complaint, "instead of engaging in productive business discussions, Take-Two chose to continue supporting Zynga's efforts to avoid responsibility for its willful infringement."
The case is titled International Business Machines Corp v. Take-Two Interactive Software Inc., filed in the U.S. District Court for the District of Delaware, Case No. 1:24-cv-01087.
