IBM Facing Lawsuit Related To Mainframe 'Workaround'
December 14, 2009 (Dow Jones Newswire) By Jessica Hodgson
International Business Machines Corp. (IBM) is facing a lawsuit from a small mainframe software maker alleging the technology giant violated competition law by trying to stop its customers using the rival's tools.
Neon Enterprise Software LLC, a Texas-based company, accuses IBM in a lawsuit of "misrepresentation, disparagement, threats of retaliation and baseless litigation," along with its dominance in the mainframe computer market to "crush" Neon.
The lawsuit, filed in a U.S. District Court in Texas, is seeking damages and "disgorgement of profits" from IBM, essentially asking IBM to pay Neon whatever money it made through what Neon is alleging are unfair practices. Chris Reynolds, a partner at Reynolds, Frizzell, Black, Doyle, Allen & Oldham LLP, representing Neon, said the amount of damages sought would depend on the court's judgment.
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