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MIT sues Amazon AWS over PUF patent infringement on cloud security tech (Reuters, Oct 12)

What happened

The Massachusetts Institute of Technology sued Amazon in Boston federal court (filed Friday, Oct 9; reported by Reuters today), alleging that Amazon Web Services' data-security technology infringes two MIT patents. The patents cover physical unclonable function (PUF) technology — used to create unique cryptographic keys — based on research by MIT professor Srinivas Devadas. MIT says AWS uses cloud-security technology supplied by Synopsys that infringes those patents, and asks the court for unspecified monetary damages. Amazon did not immediately respond to requests for comment. Dow Jones Newswires updated coverage Monday at 14:46 ET, and the WSJ's Stocks to Watch noted AMZN shares dropped 1.1% Monday.

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Who’s affected

  • AMZN (Amazon): direct defendant via AWS; legal overhang on the company's highest-margin business, damages unspecified — modest near-term impact but a second cloud patent front for hyperscalers
  • MSFT (Microsoft): read-across — defending the same MIT PUF patents in Texas since May; an Amazon outcome (license/settlement terms) becomes a template for the Microsoft case and vice versa
  • SNPS (Synopsys): its PUF IP is the accused technology in both suits, though it is not named as a defendant; indemnification exposure is a watch item
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