AMS, founded in 1998, creates software and computer management solutions for marketing and promotion applications.
The company developed its digital coupons as an alternative to printed inserts containing individually coded coupons typically seen in Sunday newspapers.
AMS' lawsuit, filed in U.S. District Court this past June, claimed that Kroger infringed its patents by using a similar digital coupon system and website.
Under the terms of the settlement, AMS will license their technology to Kroger and one of the company's technology subsidiaries.
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