2002 Compuware vs. IBM
On March 12, 2002, Compuware filed suit in the United States District Court for the Eastern District of Michigan against International Business Machines Corporation ("IBM") alleging, among other things, infringement of its copyrights and misappropriation of its trade secrets with respect to its mainframe software tools, intentional interference with contractual relations with its employees and former employees, antitrust law violations, tortious interference with its economic expectancy and various state law violations. Compuware claimed that (i) IBM had copied and misappropriated portions of its mainframe software tools and had wrongfully used its technology to develop competing products; (ii) IBM made false representations regarding Compuware’s software products in violation of the Lanham Act; and (iii) IBM was using its monopoly power to engage in unlawful tying arrangements and was subverting competition on the merits by denying critical information to Compuware and others in an effort to undermine Compuware’s development efforts. The suit sought injunctive relief and unspecified monetary damages, among other things, from IBM.
Click to read the complaint...
In early 2003, Compuware asked the Court for a Preliminary Injunction on IBM’s sale of the competing products.
In December 2003, the Court denied Compuware's Motion for Preliminary Injunction on the trade secret and false advertising claims, ruling that there were fact issues that needed to be decided by a jury. Compuware's Motion did not address IBM's antitrust violations or unfair competition. Those claims, as well as the trade secret misappropriation claims were scheduled to be tried by a jury in September 2004.
On January 15, 2004, IBM filed patent infringement claims against Compuware in the United States District Court for the Southern District of New York. The Compuware products accused of infringement were Strobe, QA Center, DevPartner and Uniface. The suit sought injunctive relief and unspecified monetary damages. Fact discovery was proceeding. No trial date had been set for these claims.
On August 11, 2004, in direct contrast to the sworn statements of its employees and the pleadings of its lawyers, IBM admitted that the source code in question had apparently been simultaneously discovered at two separate facilities located on opposite sides of Australia.
On September 1, 2004, U.S. District Court for Eastern Michigan sanctioned IBM for "gross negligence" in the software piracy portion of Compuware’s case against the technology giant.
Click to read the hearing transcript...
On September 15, 2004, U.S District Court for Eastern Michigan granted part of Compuware’s motions, namely that IBM had to pay Compuware for costs incurred in bringing its motion, that discovery related to File Manager was to remain open until the end of 2004, that IBM should pay Compuware for expert reports related to File Manager. The Court denied Compuware’s motions for default judgment relating to relief for Copyright Infringement, relief for Trade Secret Misappropriation, for preclusion of File Manager pre-Version 1 code and for an order enjoining the sale or distribution of File Manager.
On October 12, 2004, Compuware filed an objection to the U.S. District Court’s order based on IBM’s refusal to pay fees associated with the U.S. District Court’s order.
Click to read the objection...
On March 22, 2005, Compuware announced that it had entered into a software, services and technology relationship with IBM and settled all outstanding litigation between the enterprises. As a result of this agreement, IBM will license $140 million of Compuware software over four years and offered to purchase $260 million of Compuware services over four years. IBM and Compuware will exchange technical information for the interoperability of IBM and Compuware S/390 architecture and programs. Compuware will continue as a member of IBM's PartnerWorld program, under which it receives technical information generally made available to other independent software vendors. IBM and Compuware entered into a patent cross-licensing agreement, covering patents related to both companies' businesses. IBM and Compuware settled all outstanding claims between the two companies, including pending litigation.
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