IBM has won a legal battle in London against LzLabs, a company owned by U.S. tech entrepreneur John Moores, over allegations of trade secret theft.
The lawsuit, filed in the High Court, accused Switzerland-based LzLabs, its two UK subsidiaries, and Moores of unlawfully acquiring IBM’s mainframe software through reverse engineering.
IBM claimed that LzLabs’ subsidiary, Winsopia, purchased an IBM mainframe and agreed to a software license in 2013, only to use that access to replicate IBM’s technology.
LzLabs and Moores denied the allegations, asserting that their software was developed independently over nearly a decade. However, Judge Finola O’Farrell ruled largely in IBM’s favor, stating that Winsopia breached its IBM software license and that LzLabs and Moores “unlawfully procured” those breaches.
A further hearing will be held to determine IBM’s possible damages. However, the court dismissed IBM’s claims against another LzLabs subsidiary, LzLabs Limited, and its current and former CEO.
IBM and LzLabs have yet to comment on the ruling, and Moores could not be reached for a statement.
