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IBM hit by mainframe lawsuit


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Neon claims IBM is trying to stop System z users from buying its zPrime tool

Neon Enterprise Software has filed legal papers in a Texas court accusing IBM of anti-competitive practices.

Neon alleges that IBM is trying to hamper sales of its zPrime tool, which allows enterprises to run IBM System z business application workloads on Neon's lower-cost zIIP and zAAP speciality processors.

"Consumers throughout the United States, and the world, would benefit from the dramatic reduction in the cost of processing workloads on mainframe computers that is made possible via the use of zPrime," the firm said in a statement.

Neon accuses IBM of "tortious interference" “ a legal term for when a person intentionally damages the plaintiff's contractual or other business relationships with prospective contracts "“ and is seeking significant financial redress.

"Neon is seeking to recover actual and enhanced damages, disgorgement of IBM profits, a declaratory judgment and reasonable and necessary attorneys" fees," the firm said.

"Faced with the threat now posed by Neon, IBM has used a variety of unlawful means, including misrepresentation, disparagement, threats of retaliation and baseless litigation, and other types of unfair and unlawful competition, in an attempt to crush Neon and thereby protect the revenue generated from IBM's monopoly in the processing of legacy workloads."

A copy of the lawsuit is available here.

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