Cloud Clash: Amazon Reportedly Faces $525M Verdict For Patent Infringement

Apr 11, 202409:47 UTC

Amazon.com Inc’s AMZN cloud-service provider Amazon Web Services has been reportedly ordered by an Illinois federal jury to pay tech company Kove $525 million for breaching its patent rights in data-storage technology.

The jury found that AWS violated three of Kove’s patents crucial to storing and retrieving massive data, according to a report from Reuters.

The report quoted an Amazon spokesperson who expressed disagreement with the verdict and plans to appeal.

Lead attorney Courtland Reichman sees the verdict as a win for innovation and protecting intellectual property rights for start-ups against industry giants.

Chicago-based Kove initiated the lawsuit against Amazon in 2018, asserting its pioneer status in cloud storage technology.

Kove alleged AWS’ infringement on patents related to Amazon S3 storage service, DynamoDB database service, among others, which the jury validated.

Kove filed a similar lawsuit against Alphabet Inc GOOGL last year for infringing the same patents, a case still under litigation in Illinois.

Price Action: AMZN shares closed higher by 0.15% at $185.95 on Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Courtesy of Ulf Wittrock via Shutterstock