Big Blue said it has started legal action against Priceline, alleging the company has breached its intellectual property.
IBM said that it has attempted to negotiate with the Priceline Group and its subsidiaries for over three years but has failed to reach an agreement.
It filed the case in the US District Court of Delaware against the Group and its subsidiaries priceline.com, opentable.com and kayak.com.
IBM wants the companies to pay damages for breaching its patents and also wants the court to impose a royalty for the continued use of its technology.
William LaFontaine, general manager of intellectual property at IBM said: “We have filed this lawsuit against Priceline for a very simple reason – IBM’s patents are being knowingly and unfairly exploited.”
He continued: “Our preference is to engage in good faith negotiations and agree to a fair patent licence, but when another company wilfully uses our intellectual property without permission, we have no option but to protect and vigorously defend it through every means available.”
He aded that Priceline is alleged to have infringed four IBM patents. It has entered over 1,000 patent licensing agreements.
IBM told Priceline “numerous times” about tthe infringement, but it has refused to participate in negotiations.
