May 21, 2022

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IBM says entrepreneur’s company stole mainframe technology

2 min read


The cooling system of an IBM z13 mainframe server on IBM stand at the CeBIT trade reasonable in Hanover March 14, 2015. REUTERS/Morris Mac Matzen

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  • IBM says former San Diego Padres owner John Moores created shell entity to steal information
  • One more Moores company formerly blocked from utilizing IBM insider secrets

(Reuters) – Intercontinental Business enterprise Equipment Corp reported in a lawsuit submitted Monday that U.S. tech entrepreneur and philanthropist John Moores’ firm LzLabs GmbH stole IBM’s mainframe trade secrets to use in its personal mainframe enterprise.

Switzerland-based mostly LzLabs designed a shell corporation to license IBM’s mainframe software program and reverse engineered it to misappropriate IBM’s mainframe technology, in accordance to the lawsuit filed in Waco, Texas federal court.

LzLabs did not quickly answer to a ask for for remark on the allegations. Moores, who previously owned Key League Baseball’s San Diego Padres and founded info technological innovation enterprise BMC Application in 1980, could not quickly be reached.

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The lawsuit explained one particular of Moores’ other companies, Neon Enterprise Application LLC, experienced engaged in a “free of charge-using work” on IBM’s mainframe technological know-how in advance of. A federal choose in Waco completely blocked Neon and Moores from misusing IBM’s technological innovation and advertising its competing merchandise in 2011, and Moores designed LzLabs soon soon after, IBM reported.

IBM also accused LzLabs on Monday of infringing patents linked to mainframe technological innovation and falsely promotion that its system is “functionally equal” to IBM’s. It asked the court docket to block LzLabs’ alleged violations, and requested an undisclosed amount of money of funds damages together with dropped earnings.

The situation is Global Organization Machines Corp v. LzLabs GmbH, U.S. District Court docket for the Western District of Texas, No. 6:22-cv-00299.

For IBM: David Nelson, Alexander Rudis, and Nina Tallon of Quinn Emanuel Urquhart & Sullivan Deron Dacus of the Dacus Agency

For LzLabs: n/a

Study a lot more:

IBM faces a different mainframe grievance in Europe

3 companies drop EU antitrust problems from IBM

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