IBM is being sued for £3m by anAmerican internet retailerbecause the
store used an IBM e-commerce system which, it alleges, contained
patented technology from two other companies.
The court complaint filed by fruit seller Harry & David in
the US said that the company purchased WebSphere and Net Commerce
software to create an internet shop to sell its products
online.
However,
the complaint alleges the software contained technology
patented by Charles E. Hill & Associates and cash machine
specialist NCR, and that IBM failed to notify Harry & David or
defend the company when it was ultimately sued by Hill.
The retailer
also claims that IBM continued to sell upgrades of the
e-commerce system to Harry & David as recently as 2005.
In that same year, NCR told Harry & David that its use of
the e-commerce software infringed its patents, and Harry &
David had to buy a licence to use the software. Then, in June 2007,
Hill sued Harry & David in a Texas court and the company was
forced to settle.
"Despite IBM's knowledge that its infringement could subject
Harry and David to claims for patent infringement, and despite its
knowledge that Hill in fact intended to sue IBM's customers for
their use of E-commerce Programs, IBM took no action to protect
Harry and David from Hill's lawsuit or to inform Harry and David of
the potential of a Hill suit," the retailer said in court
documents.
IBM did not immediately return a request for comment. An NCR
spokesman said the company did not comment on ongoing legal
cases.