Neon Pulls Disputed Software, Ends Suit Against IBM

Law360, New York (May 31, 2011, 8:48 PM EDT) -- Neon Enterprise Software LLC, which claimed IBM Corp. tried to crush it by threatening its customers with contract suits, on Tuesday dropped a Texas unfair competition lawsuit against the giant and agreed to pull one of its mainframe software products from the market.

Neon will no longer sell its zPrime line of software, which allowed mainframe users to avoid paying tens of millions in licensing fees to IBM, and will terminate its outstanding licenses — effectively recalling the product. Once its users have stopped using zPrime,...
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