Compuware has accused IBM of stealing its trade secrets, specifically claiming IBM stole secrets to copy two of its programs, a mainframe-based file manager and a program that helps users locate the source of problems on their mainframes.
Compuware alleges that IBM then heavily discounted the products or gave them away free as part of hardware deals in order to kill off the main competitor in the mainframe management market, namely Compuware.
But despite the case getting under way in the US District Court in Detroit earlier this month, Compuware’s general counsel Thomas Costello said: Over the past couple of months, senior management from Compuware and IBM have entered into good-faith negotiations to settle the case. Negotiations continue to go on. While Compuware remains hopeful that a settlement beneficial to both sides may be reached, the company is continuing the trial with the expectation of proving its case before a jury.
He added: The continuing depositions and testimony of witnesses and the ongoing production of documents in this case have only reinforced our already strong position. We are confident that the merits of Compuware’s case will prevail with the jury.
As the trial started two weeks ago, Compuware lawyer Daniel Johnson told the jury: This is about IBM, one of the largest corporations in the world, going out and embarking on a plan to kill Compuware. This case is really simple. This is about the theft of technology worth millions and millions of dollars. Johnson also presented jurors with an IBM memo apparently titled Compuware Killer, which allegedly set out its plan to compete with and subsequently destroy Compuware.
However, Compuware’s CEO Peter Karmanos appears to have confused the picture somewhat by saying in a statement: Renewal rates for our mainframe products remain well above 90%.
Despite some of IBM’s business practices, Karmanos said, Compuware has been able to reach out to our client base and demonstrate the value that our File-AID and Abend-AID products deliver. In fact, this situation has reminded us of the absolute need to educate our customers on why they originally purchased our products. We can and are hitting the streets to demonstrate the substantial value and ROI customers receive anytime they buy a Compuware product.
IBM denies the charges, and its attorneys are arguing that it only used public information and its own skills to develop its mainframe software products. It says Compuware’s case is simply an attempt to block competition. IBM lawyer Evan Chesler said the two companies’ software is similar not because IBM stole Compuware’s trade secrets, but simply because they are both designed to work with IBM mainframes. The case continues, as do the good-faith negotiations.
