In a significant development, IBM (IBM.N) has officially dropped its patent infringement lawsuit against video game giant Take-Two Interactive (TTWO.O). The case, which had been filed in September 2024, accused Take-Two of violating IBM’s patents related to internet technology, specifically in areas like web advertising, virtual worlds, and user authentication.
According to a joint court filing made on Monday, both IBM and Take-Two notified the Delaware federal court that IBM will dismiss its claims with prejudice—meaning that the lawsuit cannot be refiled. This move marks the conclusion of a legal battle that had drawn attention to the intersection of technology patents and the video gaming industry.
While both companies refrained from providing further details, including whether the case had been settled outside of court, the dismissal of the lawsuit with prejudice ensures that this particular legal dispute is closed for good. Take-Two and IBM spokespeople did not immediately respond to requests for comment.
The lawsuit, filed by IBM in September, had centered on allegations that several of Take-Two’s game titles—including NBA 2K, Grand Theft Auto, and Red Dead Redemption—had infringed upon IBM’s intellectual property. The complaint also targeted Take-Two’s game launcher, claiming that its functionalities infringed upon IBM’s patents, some of which trace back to the company’s internet service Prodigy, launched in the late 1980s.
IBM has been known for pursuing similar patent infringement claims against other major tech and gaming companies, having previously resolved cases with companies like Zynga, Chewy, Groupon, and Rakuten. The company had engaged with Take-Two since 2021, seeking to discuss the alleged infringements and offering an opportunity for licensing negotiations earlier this year.
Take-Two, based in New York, did not respond to the allegations in court, and the dismissal comes without further action from the company.
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