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"<body><p>Groupon has delivered a lawsuit against IBM, demanding the tech titan pay it untold millions for allegedly taking elements of location-based shopping technology Groupon developed for use in its own programs which it sells to retailers to use GPS to target offers and promotions at certain customers.\r</p><p>On May 9, Groupon, of Chicago, filed suit in Chicago federal court against New York-based International Business Machines, asserting IBM infringed upon Groupon\u2019s patent for the GPS-enabled shopping programs.\r</p><p>The complaint does not specify how much Groupon is asking the court to order IBM to pay. But the lawsuit said Groupon is seeking royalties from IBM based on IBM\u2019s sales of its Websphere suite of programs, which Groupon estimated has earned IBM billions of dollars. \r</p><p>Groupon is represented in the action by attorneys with the firms of Marshall, Gerstein & Borun, of Chicago, and Fenwick & West, of Mountain View, Calif.\r</p><p>The complaint centered on IBM\u2019s integration into its Websphere program suite of so-called \u201CSoLoMo\u201D technology, which allows for \u201Cthe convergence of connected mobile devices, social networks and location based services.\u201D\r</p><p>In its complaint, Groupon asserted that it \u201Cpioneered these Social-Local-Mobile services\u201D and holds the associated patent rights. \r</p><p>The technology works by piecing together large bits of diverse information about \u201Cthe locations and traits of owners of nearby mobile devices,\u201D based on, among other things, GPS data and social media, and using that information to help retailers and others make better offers to the customers owning those mobile devices.\r</p><p>According to the complaint, IBM\u2019s WebSphere technology also works by helping \u201Cbusinesses to contact customers in real time with targeted marketing communications and incentives based on their current location, activity and interests.\u201D The complaint noted WebSphere helps retailers communicate in real time with customers by way of \u201Ccustomer \u2018check-ins\u2019 at a venue, store-based sensors and GPS data.\u201D\r</p><p>However, Groupon alleged IBM didn\u2019t just develop its own technology. Instead, Groupon alleged IBM\u2019s programs \u201Cwere built using Groupon\u2019s innovations and patented technology.\u201D\r</p><p>Groupon\u2019s complaint alleged IBM, to catch up to other companies, \u201Cscrambled to add SoLoMo technology to its flagship WebSphere\u201D and in the process \u201Cunlawfully used Groupon\u2019s technology and infringed upon Groupon\u2019s intellectual property.\u201D\r</p><p>\u201CIBM subsequently reaped millions of dollars in revenue from sales of its enhanced WebSphere software that bolstered its floundering business,\u201D Groupon said. \r</p><p>Groupon said the court must intervene to stop \u201C\u2019Big Blue\u2019 from further trampling on the intellectual property rights of today\u2019s technology pioneers and to maintain a level playing field for continued innovation, disruption and growth.\u201D\r</p><p>Groupon said it believes it is entitled to \u201Croyalties on the billions of dollars in revenue that IBM has received based on its unlawful use of Groupon\u2019s patented technology.\u201D\r</p><p>Groupon\u2019s complaint asserted it received patent rights to the SoLoMo technology in 2010.</p></body>"^^<http://www.w3.org/2001/XMLSchema#string>
<http://cookcountyrecord.com/stories/510723665-groupon-says-ibm-stole-tech-to-craft-gps-based-targeted-sales-pitches-to-shoppers>