Amazon Ordered to Pay $46.7 Million in Patent Infringement Case
A Delaware federal court has ruled that Amazon must pay $46.7 million for infringing on four patents owned by VB Assets with its Echo smart speakers and Alexa virtual assistant. The lawsuit, filed by Nuance Communications-owned VB Assets, claimed that it had already invented a circular speaker that could connect to the internet and respond to voice commands with a female, robotic voice.
The court’s judgment, reported by Reuters, orders Amazon to pay the amount through running royalties instead of a lump sum. This decision follows a jury verdict that found Amazon guilty of infringing upon four of VoiceBox’s patents. These patents relate to providing network-coordinated conversational services, a conversational voice user interface, and linking advertisements to natural language processing of voice-based input. VB Assets initially accused Amazon of infringing on six of its patents.
While Amazon still has the option to appeal the judgment, VoiceBox can seek reimbursement for related costs.
VoiceBox claimed that it had developed a prototype similar to Echo and Alexa long before Amazon’s products were announced. The lawsuit included a link to a video on YouTube that appeared to be a news report about VoiceBox’s “Cybermind” prototype. The video showed someone asking the speaker questions and giving prompts, with the speaker responding with answers from the internet or the connected computer.
VoiceBox’s founders began working on bringing natural language understanding to computer applications in 2001. The company, headquartered in Bellevue, Washington, has developed voice-controlled apps for GPS brands and cars.
The lawsuit also alleged that Amazon invited VoiceBox employees to meetings about its technologies, only to steal ideas and poach employees. VoiceBox claimed that it first met with Amazon in 2011 to explore a potential business relationship. Amazon announced the Amazon Echo and Alexa in 2014, and further meetings regarding VoiceBox’s patents took place in 2017.
Amazon has not responded to requests for comment.
This judgment comes in contrast to a 2021 ruling that found Alexa does not infringe upon patents by IPA Technologies Inc. While the $46.7 million payment is not significant compared to Amazon’s overall revenue, it adds to the uncertainty surrounding its voice assistant at a time when it is already facing challenges. Reports suggest that Alexa was expected to cost Amazon $10 billion in 2022. In an effort to increase revenue, Amazon revealed its generative AI Alexa ambitions and plans to eventually charge a subscription fee for its most advanced features. However, this idea is still years away from becoming a reality.