Neon sues IBM

Computer giant accused of breaching antitrust laws
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Computer giant accused of breaching antitrust laws

Neon Enterprise Software has filed a lawsuit against IBM, following allegations that IBM has violated state competition laws.

Neon claims that IBM is liable for business disparagement and interference with prospective contracts in trying to stop IBM Mainframe z owners from using its Neon zPrime software.

The lawsuit, filed in the Austin Division of the United States District Court for the Western District of Texas, seeks to recover damages, disgorgement of IBM profits, and legal fees.

Neon zPrime is a propriety software product that enables System z business application workloads to run on IBM’s speciality processors at a lower cost. However, IBM customers have recently become “locked-in” as IBM has looked to increase dependence on IBM hardware and software.

Neon claim that IBM has violated the Lanham Act and state unfair competition laws, while its “unlawful and deceptive trade practices” have lost them substantial custom.