New York: IBM has filed a lawsuit against video game publisher Take-Two Interactive in Delaware federal court, alleging infringement of its patent rights related to various internet technologies. The lawsuit claims that features within Take-Two’s game launcher and popular titles, including NBA 2K, Grand Theft Auto, and Red Dead Redemption, violate IBM’s patents concerning web advertising, virtual worlds, and user authentication.
Take-Two and representatives for IBM have not yet responded to requests for comments regarding the lawsuit.
Based in Armonk, N.Y., IBM has previously targeted other companies for similar patent infringements, some stemming from technology developed for its internet service Prodigy in the late 1980s. IBM resolved a related lawsuit against pet food retailer Chewy in March and settled with Japanese tech firm Rakuten in June for an undisclosed amount. In 2018, online marketplace Groupon settled IBM’s lawsuit for $57 million after an $83 million jury verdict favored IBM.
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Earlier this month, IBM secured a $45 million jury verdict against mobile game developer Zynga over similar patents. Notably, Take-Two acquired Zynga in 2022.
The complaint indicates that IBM and Take-Two have discussed the alleged patent infringement since 2021, with IBM inviting Take-Two to engage in licensing negotiations earlier this year. However, the complaint states, “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.”
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The case is registered as International Business Machines Corp v. Take-Two Interactive Software Inc in the U.S. District Court for the District of Delaware, No. 1:24-cv-01087.
