Priceline.com, Expedia.com and Microsoft yesterday announced that
they have settled two lawsuits brought by Priceline.com against the
software company and its internet travel-booking spin-off service.
The lawsuits alleged infringement of a business method patent.
Priceline.com has since August 1998 held a patent for its
reverse auction business method which allows visitors to its site
to name their price when buying airline tickets, hotel rooms and
other services. The sellers then bid for the business of the
buyers. Expedia.com, owned mainly by Microsoft, offers a similar
price-matching service.
Under the settlement terms, Expedia.com will continue to operate
its Price Matcher services and has entered into a royalty
arrangement with Priceline.com. Without disclosing any details,
Expedia.com and Priceline.com said they do not expect this
arrangement to have a material impact on their respective
businesses.
In a joint statement, Priceline.com and Expedia.com said, “We
believe this settlement is in the best interests of our companies.
This settlement resolves all legal issues between the parties and
allows us to move forward.”
