IBM Wins Lawsuit Against LzLabs Over Trade Secrets Theft.
IBM secured a victory on Monday against U.S. tech entrepreneur John Moores’ company, LzLabs. The lawsuit, filed in the UK, accused LzLabs of stealing trade secrets by unlawfully reverse-engineering IBM’s mainframe software.
The Allegations: IBM vs. LzLabs
IBM’s case targeted Switzerland-based LzLabs and its UK subsidiary, Winsopia, as well as LzLabs’ owner, John Moores. The tech giant alleged that Winsopia had purchased an IBM mainframe computer and entered into a licensing agreement with IBM in 2013. However, IBM claimed that Winsopia used this access to reverse-engineer its mainframe software, violating the terms of the license agreement.
LzLabs’ Defense: Independent Development
LzLabs and Moores vigorously defended themselves, arguing that their software was the result of almost a decade of independent development. They denied using any of IBM’s licensed software unlawfully and contended that their product was a genuine innovation, developed without infringing IBM’s intellectual property.
The High Court Ruling: IBM Prevails
The High Court largely sided with IBM, with Judge Finola O’Farrell ruling that Winsopia had breached the terms of its software license. The judge also found that LzLabs and John Moores had “unlawfully procured” these breaches.
While IBM succeeded in this part of the case, the court rejected IBM’s claims against another British subsidiary of LzLabs and its current and former CEO.
The ruling is not the final chapter. A subsequent hearing will be held to determine the damages that LzLabs and Moores may owe IBM for the breach of contract. This will give clarity on the financial repercussions of the court’s decision.
Background on John Moores
John Moores, a well-known figure in the tech and sports worlds, previously owned the San Diego Padres Major League Baseball team and founded BMC Software in 1980. He is known for his philanthropic efforts and significant contributions to the IT industry.
LzLabs is a Switzerland-based company that specializes in modernizing legacy mainframe systems. With its flagship product, the LzLabs Software Defined Mainframe® (SDM), the company provides businesses with solutions to migrate their mainframe applications and data to modern, flexible cloud environments. LzLabs’ incremental approach allows organizations to transition one application at a time, ensuring smooth integration and minimizing risk while preserving the value of existing systems. They focus on delivering cost savings, improved operational efficiency, and accelerated modernization for clients in industries such as telecommunications, banking, and automotive. The company has gained recognition for its innovative methods and has worked with several global companies to successfully transform their IT infrastructure.