NEON Settles Suit And Countersuit With IBM

Mainframe software maker NEON announced that it has settled its lawsuit with IBM.

As a part of the settlement, NEON has agreed to withdraw its zPrime product from the market. IBM had alleged that the product infringes on its copyright after NEON accused IBM of anti-competitive practices.

“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,” the company said in a press release on The Street.

NEON had filed a lawsuit against IBM in the U.S. District Court for the Western District of Texas back in 2009, accusing IBM off deploying anti-competitive tactics in the mainframe market. IBM fired back with a counter lawsuit in January 2010, denying taking such measures and claiming that the company’s zPrime product infringed on IBM's copyrights.

NEON also said in its press release that the settlement was reached without any parties paying a fee. The company agreed to remove the product from the market and will ask its customers to destroy the licenses and copies of the product immediately.