IBM has reached a settlement with Zynga, resolving a patent infringement lawsuit that resulted in a $45 million jury verdict earlier this year. According to a filing in Delaware federal court, both companies have agreed in principle to settle the case and have requested the court to pause further proceedings while the settlement terms are finalized.
In the lawsuit filed in 2022, IBM accused Zynga of infringing on patents related to foundational internet technologies that IBM developed during the late 1980s for its Prodigy online service. The patents in question cover web-based communications systems that are integral to modern internet applications. IBM has previously filed similar lawsuits against other tech giants such as Chewy, Rakuten, and Groupon over related technologies.
In September 2023, a Delaware jury found that Zynga’s mobile games, including popular titles like “Farmville,” violated two of IBM’s patents. The jury awarded IBM $44.9 million in damages as compensation for the infringement.
Zynga denied the allegations, challenging the validity of the patents. The company attempted to have the verdict overturned, requesting the court to either dismiss the judgment or order a new trial. However, the recent settlement signals the resolution of the dispute, though the specific terms of the agreement have not been disclosed.
The case is: International Business Machines Corp v. Zynga Inc., U.S. District Court for the District of Delaware, No. 1:22-cv-00590.
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