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US court tells Emptoris to pay additional damages to Ariba

Published:23-December-2008

Injunction to be issued on use of two patents


Ariba, a developer of spend management systems, has announced that the US District Court for the Eastern District of Texas has increased the damage award that had been assessed by the jury by an additional $1.4million to a total of $6.4million.

It has ruled that Emptoris must pay Ariba pre-judgment interest on the jury’s pre-enhancement damage award. The court also ordered Emptoris to pay Ariba’s costs incurred during the suit.

The court will soon issue an injunction against Emptoris prohibiting it from infringe of two Ariba patents. The two patents cover, respectively, the use of individual bid ceilings and certain auction overtime rules in electronic auctions. Such functions used for the design and execution of online markets.

David Middler, senior vice president and general counsel of Ariba, said: “This ruling and the judge’s statements are further testament to the strength of Ariba’s intellectual property and our ability to deliver innovations in electronic auctions and sourcing. Ariba will continue to offer the functionality covered by these two patents as part of its sourcing solutions.”

Ariba delivers software, service, and network that enable companies to source, contract, procure, pay, manage, and analyse their spend and supplier relationships. According to the company, more than 1,000 companies use its services to manage their spend from sourcing and orders through invoicing and payment.

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The Ariba v. Emptoris trial has concluded. The Federal District Court denied Ariba's motion regarding the release of Emptoris' new proprietary software patch which addresses the alleged infringement. The ruling effectively concludes the Ariba v. Emptoris trial (although Emptoris maintains the right to appeal the Court's original ruling.) The overwhelming majority of Ariba's patent claims were dropped, dismissed with prejudice, or ruled invalid as a matter of law by the Court.The court's original judgment was related to code for individual bid ceilings and certain auction overtime rules, which Emptoris no longer utilizes.
Dan Cahill - 11:23:38 06/03/2009

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