The five asserted patents are: 5,319,542, ordering items using an electronic catalogue; 5,442,771, storing data in an interactive network; 5,446,891, adjusting hypertext links with weighted user goals and activities; 5,796,967, presenting applications in an interactive service; 7,072,849, presenting advertising in an interactive service.

With a worldwide patent portfolio of 40,000 patents, IBM is the world's leading patent holder. IBM spends $6 billion a year in R&D, and earns about $1.5 billion a year in royalties. IBM received 2,941 U.S. patents in 2005, for the 13th year straight, more than any other company.

IBM alleges that the asserted patents cover portions of Amazon's elaborate product-recommendation system. "Given that time frame, these are very fundamental inventions for e-commerce and how to do it on the network,'' observed John E. Kelly, IBM's senior VP for IP. "Much, if not all, of Amazon's business is built on top of this property.''

IBM noted that other companies have licensed the same patents, and that it has tried to negotiate licensing fees with Amazon "over a dozen times since 2002'' but "Amazon.com has refused every time.'' Asked about licensing these patents, Kelly smiled, "We are not unreasonable people."

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IBM filed in both the Lufkin & Tyler divisions. Here is a copy of the complaint for Lufkin district court.