IBM has secured a significant legal victory in a UK court against LzLabs, a company owned by U.S. entrepreneur John Moores.
The lawsuit, filed in the High Court, accused LzLabs of misappropriating IBM’s trade secrets related to its mainframe technology.
IBM alleged that LzLabs’ UK subsidiary, Winsopia, purchased an IBM mainframe computer in 2013 and used the access to reverse-engineer IBM’s software, violating the terms of their licensing agreement.
LzLabs and Moores defended themselves, claiming that they developed their own software over nearly a decade without using IBM’s technology illegally.
However, Judge Finola O’Farrell ruled in favor of IBM, stating that Winsopia breached its license terms and that LzLabs and Moores facilitated these breaches unlawfully.
An IBM spokesperson expressed satisfaction with the ruling, highlighting that the technology involved represents a substantial investment for IBM.
The court’s decision followed a trial last year to assess liability, with a future hearing scheduled to determine any damages.
IBM’s claims against another UK subsidiary and LzLabs’ current and former CEO were dismissed. LzLabs and Moores have not yet commented on the ruling.
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