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.”