IBM Wins UK Court Case Against LzLabs Over Trade Secrets

IBM has won a significant legal victory against LzLabs, a Switzerland-based company owned by entrepreneur John Moores, in a UK court ruling that found LzLabs guilty of unlawfully reverse-engineering IBM's mainframe software. The High Court determined that LzLabs' UK subsidiary, Winsopia, breached its licensing agreement with IBM by using a purchased mainframe to develop its own software, which IBM argues infringes on its trade secrets. Judge Finola O'Farrell stated that both LzLabs and Moores conspired to procure these breaches. LzLabs defended itself by claiming its software was independently developed over nearly a decade, but the court largely sided with IBM. While IBM succeeded in this case, it faced setbacks with claims against another LzLabs subsidiary and its executives, which were dismissed. A subsequent hearing will address the damages owed to IBM as a result of the breaches.