NEON, a Texas-based maker of mainframe utility software, has settled its lawsuit with IBM and has agreed to stop selling its zPrime product.
NEON Enterprise Software, a maker of
mainframe software, announced it has settled its legal dispute with IBM
and will immediately withdraw its zPrime product from the market.
In the May 31 announcement, NEON said
that pursuant to the terms of a permanent injunction, NEON
and its distribution partners and affiliates will no longer market, sell,
license--including any renewal or extension of any existing license, install,
distribute, export, import, offer to sell, offer to license, offer to install,
offer to distribute, offer to export or offer to import zPrime.
Moreover, the legal dispute was settled with no payments having been made by
either party to the other as part of the settlement.
According to the NEON press release on
"The U.S. District Court has ruled that (1) only workloads expressly
authorized by IBM may be processed on
Specialty Engines (including zIIPs and zAAPs) and (2) IBM's
contracts, including the IBM Customer
Agreement and the License Agreement for Machine Code, prohibit software (a)
that enables workloads not expressly authorized by IBM
to be processed on Specialty Engines or (b) that circumvents IBM's
technological measures in Machine Code that protect the Built-in Capacity of
Specialty Engines and enables workloads not expressly authorized by IBM
to be processed on Specialty Engines. Neon has agreed to a permanent injunction
under which it will withdraw zPrime from the market and request that licensees
and customers remove and destroy their copies of zPrime. Neon will not renew,
extend or transfer any existing zPrime license or any warranty, maintenance or
service period of any existing zPrime license (or any portion thereof)."
filed suit against IBM
in the U.S. District Court for the Western District
of Texas in December 2009, claiming IBM was using anticompetitive mainframe
came back and countersued NEON
in January of 2010 for unfair business
practices and anticompetitive behavior of its own, namely copyright violation. NEON
then amended its complaint
in February 2010 sharing more specific details
of IBM's alleged anticompetitive behavior.
a June 2009 press release announcing zPrime, NEON
zPrime can save companies with System z mainframes 20 percent or more of their
annual mainframe hardware and software costs under conventional use-pricing
structures. Unlike any approach to date that attempts to offload processing
from a System z central processor, or CP, to IBM
specialty processors such as System z Integrated Information Processor (zIIP)
or System z Application Assist Processors (zAAP), zPrime easily enables the
shift of huge amounts of routine workloads running on CPs to these equally-fast
but lower-cost specialty processors."
this settlement with IBM does not affect any
other NEON products, the company said.