IBM Sues Take-Two Interactive for Patent Infringement Over Internet Technologies

In a lawsuit filed in Delaware federal court on Monday, International Business Machines Corp (IBM) has accused video game maker Take-Two Interactive Software Inc. of infringing on several of its patents related to internet-based technologies. IBM claims that Take-Two's popular video game titles, including NBA 2K, Grand Theft Auto, and Red Dead Redemption, along with the company's game launcher, violate patents covering online advertising, virtual worlds, and user authentication.

Neither Take-Two, IBM, nor their legal representatives responded to requests for comment on the lawsuit.

IBM, headquartered in Armonk, New York, has previously pursued legal action against companies using similar technologies, some of which were developed for its Prodigy internet service in the late 1980s. In recent years, IBM has reached settlements in various patent disputes, including with Japanese tech giant Rakuten in June and pet food retailer Chewy in March. In 2018, online retailer Groupon settled with IBM for $57 million after a jury awarded IBM $83 million in a related case.

Last month, IBM won a $45 million jury award against Zynga, a mobile game developer acquired by Take-Two in 2022, for infringement of similar patents.

In the lawsuit, IBM alleges that Take-Two had been aware of the potential infringement since 2021. IBM claims that it had invited the video game company to enter discussions regarding a licensing agreement earlier this year. "Rather than engaging IBM in productive business discussions, Take-Two instead chose to support Zynga's efforts to avoid culpability for its willful infringement," IBM stated in the complaint.

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