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August 1, 1994

JUDGE EDELSTEIN HAS REFUSED IBM’s REQUEST TO LEAVE CASE

By CBR Staff Writer

US District Judge David Edelstein denied a motion by IBM Corp asking that he step down from the case involving a 1956 consent decree that the firm says makes it difficult to compete in the computer services business. Judge Edelstein’s refusal follows three prior unsuccessful efforts by IBM to get the judge to step down from other cases. In the current case, IBM alleged that Edelstein harbours a deep-seated antagonism against IBM. The consent decree requires that IBM operate its computer services business as a separate subsidiary which must pay full retail price for equipment and software it buys from IBM and resells to its customers. The 1956 decree arose from allegations by the Justice Department that IBM had monopolised the market for tabulating machines and punch cards.

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