Twitter (TWTR) Discloses Patent Infringement Letter from IBM (IBM) in Latest Filing
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Twitter (NYSE: TWTR) filed an amended S-1 with the U.S. SEC for an IPO of its common stock. The company said it would sell 70 million shares and raised its expected pricing range from $17 to $20 up to a new range of $23 to $25.
As mentioned earlier, the company also disclosed receiving a letter from IBM (NYSE: IBM) alleging infringement of three patents. The following section is from the amended filing with respect to that letter:
...we recently received a letter from International Business Machines Corporation, or IBM, alleging that we infringe on at least three U.S. patents held by IBM, and inviting us to negotiate a business resolution of the allegations. The three patents specifically identified by IBM in the letter were U.S. Patent No. 6,957,224: Efficient retrieval of uniform resource locators, U.S. Patent No. 7,072,849: Method for presenting advertising in an interactive service and U.S. Patent No. 7,099,862: Programmatic discovery of common contacts. Based upon our preliminary review of these patents, we believe we have meritorious defenses to IBM’s allegations, although there can be no assurance that we will be successful in defending against these allegations or reaching a business resolution that is satisfactory to us. Further, from time to time we may introduce new products and services, including in areas where we currently do not have an offering, which could increase our exposure to patent and other intellectual property claims from competitors and non-practicing entities. In addition, although our standard terms and conditions for our Promoted Products and public APIs do not provide advertisers and platform partners with indemnification for intellectual property claims against them, some of our agreements with advertisers, platform partners and data partners require us to indemnify them for certain intellectual property claims against them, which could require us to incur considerable costs in defending such claims, and may require us to pay significant damages in the event of an adverse ruling.
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