Out-Law / Your Daily Need-To-Know

Software provider Compuware Corporation and IBM have settled their differences, five weeks into a trial over IBM 's alleged misappropriation of copyrighted software products and anticompetitive behaviour.

Compuware sued IBM in March 2002, accusing the computer manufacturer of misappropriating and using portions of Compuware copyrighted software in IBM's File Manager and Fault Analyzer products.

The complaint also alleged that IBM illegally used its monopoly power in mainframe hardware and software products to compete unfairly in the software tools markets, in particular tying the purchase of some mainframe software tools to the purchases of critical IBM software products.

The two companies announced yesterday that IBM has agreed to license $140 million of Compuware software over the next four years, and offered to purchase $260 million of certain Compuware services over the same period.

IBM and Compuware have also entered into a patent cross-licence agreement, covering patents relating to the current businesses of both companies.

All other litigation between the companies, including two patent infringement suits filed by IBM against Compuware, has been resolved.

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