No Short-Term Resolution Is Likely in IBM-Neon Dispute
February 3, 2010 (Gartner) By John R. Phelps and Mike Chuba
On 27 January 2010, IBM filed a response and counterclaim to a lawsuit brought by Neon Enterprise Software. In its response, IBM claims Neon's zPrime software violates IBM's copyright and leads its customers to violate their IBM mainframe contracts. Neon's suit, filed against IBM on 14 December 2009, alleged that IBM is unfairly inhibiting Neon's ability to sell its zPrime product to customers.
On 1 February 2010, Neon filed a response to IBM's claims.
The original suit and this counterclaim both focus on whether Neon technology has expanded the use of specialty engines beyond what IBM's contracts allow (see "Neon and IBM Lawsuit May Impact Mainframe Software Pricing"). IBM and Neon have continuously asserted that they feel they are on strong legal ground; thus, it is not surprising that this dispute has culminated in litigation. IBM's aggressive answer and counterclaims show that this disagreement is escalating as each side uses lawsuits to apply more pressure.
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