IBM, Amazon settle dispute over patents infringement

'Big blue', which saw red over alleged patent infringement by internet retailer Amazon, is now hoping for a "more productive relationship with Amazon" as the two settled their patent-infringement lawsuits.

In a joint statement, both companies said they had now settled their dispute, under an agreement whereby Amazon said it would pay IBM an undisclosed sum of money, while both firms agreed to allow the other access to some of their technologies.

Alleging key components of Amazon's website were developed and patented by IBM, big blue sued the internet retailer in October 2006. Amazon counter-sued two months later, accusing IBM of violating five separate Amazon patents.

IBM, said it was pleased that the matter had been "resolved through negotiation and licensing. We look forward to a more productive relationship with Amazon in the future," he added.

IBM's original complaint had focused on patents covering online customer recommendations - a key part of Amazon's sales strategy.

Amazon said the settlement would not affect its second-quarter results, adding that the payout to IBM had been factored into its financial guidance for the forthcoming three-month period.