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IBM says entrepreneur’s company stole mainframe technology

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

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  • IBM says former San Diego Padres proprietor John Moores created shell entity to steal data
  • A further Moores business earlier blocked from making use of IBM strategies

(Reuters) – Intercontinental Business enterprise Machines Corp reported in a lawsuit filed Monday that U.S. tech entrepreneur and philanthropist John Moores’ business LzLabs GmbH stole IBM’s mainframe trade secrets to use in its possess mainframe small business.

Switzerland-based mostly LzLabs established a shell organization to license IBM’s mainframe software package and reverse engineered it to misappropriate IBM’s mainframe technologies, in accordance to the lawsuit filed in Waco, Texas federal court.

LzLabs did not straight away respond to a request for remark on the allegations. Moores, who formerly owned Significant League Baseball’s San Diego Padres and started information and facts technologies corporation BMC Software package in 1980, could not quickly be attained.

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The lawsuit claimed a single of Moores’ other organizations, Neon Organization Software LLC, experienced engaged in a “cost-free-using hard work” on IBM’s mainframe technologies just before. A federal choose in Waco forever blocked Neon and Moores from misusing IBM’s technological know-how and marketing its competing products in 2011, and Moores designed LzLabs soon just after, IBM mentioned.

IBM also accused LzLabs on Monday of infringing patents relevant to mainframe technologies and falsely advertising and marketing that its platform is “functionally equivalent” to IBM’s. It requested the court to block LzLabs’ alleged violations, and asked for an undisclosed quantity of revenue damages including misplaced gains.

The scenario is International Business 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

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