IBM sues Take-Two for patent infringement over internet technology

Sept 30 - IBM (IBM.N) sued video-game maker Take-Two Interactive (TTWO.O) in Delaware federal court on Monday for allegedly violating its patent rights covering a range of internet-related technology.

IBM said in its lawsuit that a Take-Two game launcher and entries from its popular NBA 2K, Grand Theft Auto and Red Dead Redemption series infringe IBM patents related to web advertising, virtual worlds and user authentication.

Spokespeople for Take-Two and attorneys and spokespeople for IBM did not immediately respond to requests for comment on the lawsuit.

Armonk, N.Y.-based IBM has targeted other companies with infringement lawsuits over similar technology, some of which it developed for its late-1980s internet service Prodigy.

IBM resolved a related case against pet food seller Chewy in March and settled with Japanese tech company Rakuten in June for an undisclosed amount. Online marketplace Groupon settled IBM's lawsuit against it for $57 million in 2018 following an $83 million jury verdict in IBM's favor.

IBM won a $45 million jury verdict in Delaware against mobile game maker Zynga over related patents earlier this month. Take-Two acquired Zynga in 2022.

IBM's lawsuit against New York-based Take-Two said that the companies discussed the alleged infringement since 2021 and that IBM "invited Take-Two to engage in meaningful discussions towards a licensing resolution" earlier this year.

"Rather than engaging IBM in productive business discussions, Take-Two instead chose to continue to support Zynga's efforts to avoid culpability for its willful infringement," IBM's complaint said.

The case is International Business Machines Corp v. Take-Two Interactive Software Inc, U.S. District Court for the District of Delaware, No. 1:24-cv-01087.