Mikele Bicolli
Jun 19, 2024

Amazon Ordered to Pay $122 Million in Internet-Advertising Patent Case

Patent Litigation

In a landmark decision, Amazon has been ordered to pay nearly $122 million to AlmondNet Inc. for infringing on patents related to targeted internet advertising technology. The case, tried in the U.S. District Court for the Western District of Texas, revolved around two patents owned by AlmondNet that cover "privacy-friendly, targeted advertising" technology. AlmondNet accused Amazon of unauthorized use of these technologies in its ad exchange and stand-alone targeting services​. 

The Trial and Verdict

After a week-long trial in Waco, Texas, the federal jury concluded that Amazon had indeed violated AlmondNet’s patents. The jury's decision emphasized the significance of intellectual property rights in the ever-evolving field of digital advertising. AlmondNet’s legal team, led by attorneys Reza Mirzaie and Marc Fenster of Russ August & Kabat, hailed the verdict as a validation of their client’s innovative contributions to ad tech​.

The patents in question are integral to the mechanisms of personalized ad targeting, which involves delivering tailored advertisements based on user data while maintaining privacy standards. This technology is foundational for many online advertising platforms, highlighting the high stakes involved in this litigation​.

Financial Implications

The jury awarded AlmondNet $122 million in damages, but with interest, this figure is expected to rise to approximately $200 million. This significant financial penalty underscores the importance of respecting patent rights and the potential consequences of infringement​.

Broader Impact and Ongoing Litigations

This case is not an isolated incident but part of a broader strategy by AlmondNet to enforce its patents. The company has filed similar lawsuits against other major tech firms, including Meta Platforms, Samsung, and Oracle. These ongoing cases suggest a continuing trend of rigorous patent enforcement in the tech industry, particularly in areas involving complex and lucrative technologies like online advertising​.

Amazon’s Response and Future Actions

Amazon has denied the allegations throughout the trial, arguing that the patents in question were invalid. As of now, Amazon has not publicly commented on the verdict, and it remains to be seen whether the company will appeal the decision​.


The $122 million verdict against Amazon marks a significant moment in the enforcement of patent rights within the tech industry. It serves as a reminder of the critical importance of intellectual property in driving innovation and the potential legal and financial repercussions of patent infringement. As digital advertising continues to grow and evolve, the protection and enforcement of related technologies will likely remain a contentious and crucial area of legal battles.