Amazon hit with $122 mln US verdict in internet-advertising patent case

Amazon, opens new tab must pay nearly $122 million for violating another company’s rights in targeted internet advertising technology, a Texas federal jury said on Friday.

After a week-long trial, jurors in Waco, Texas, agreed with patent owner AlmondNet Inc, opens new tab that elements of Amazon’s advertising platform infringe two AlmondNet patents related to personalized ad targeting.

AlmondNet attorneys Reza Mirzaie and Marc Fenster of Russ August & Kabat called the verdict a “validating win” for AlmondNet’s CEO, inventor Roy Shkedi, and the “foundational technology he invented.” Mirzaie said that with interest, the total amount of the award will likely approach $200 million.

An Amazon attorney and company spokespeople did not immediately respond to requests for comment on the verdict.

Long Island City, New York-based AlmondNet sued Amazon in 2021, accusing the e-commerce giant of infringing patents covering “privacy-friendly, targeted advertising” technology that AlmondNet said it pioneered.

AlmondNet said Amazon features including its ad exchange and stand-alone targeting services violated the patents and requested an unspecified amount of monetary damages.

Amazon had denied the allegations and argued that the patents were invalid.

AlmondNet has also sued several other tech companies over its patents, including Meta Platforms, Samsung and Oracle in ongoing cases.

The case is AlmondNet Inc v. Amazon.com Inc, U.S. District Court for the Western District of Texas, No. 6:21-cv-00898.

For AlmondNet: Reza Mirzaie, Marc Fenster, Brian Ledahl, Ben Wang, Adam Hoffman, James Milkey, Amy Hayden and James Tsuei of Russ August & Kabat. Reuters