Is this really a surprise to anyone?

On Tue, May 31, 2011 at 6:56 PM, Lizette Koehler <[email protected]>wrote:

> NEON, a Texas-based maker of mainframe utility software, has settled its
> lawsuit with IBM and has agreed to stop selling its zPrime product.
>
> NEON Enterprise Software, a maker of mainframe software, announced it has
> settled its legal dispute with IBM and will immediately withdraw its zPrime
> product from the market.
>
> In the May 31 announcement, NEON said that pursuant to the terms of a
> permanent injunction, 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.
>
> Moreover, the legal dispute was settled with no payments having been made
> by
> either party to the other as part of the settlement.
>
> According to the NEON press release on the settlement:
>
> “The U.S. District Court has ruled that (1) only workloads expressly
> authorized by IBM may be processed on Specialty Engines (including zIIPs
> and
> zAAPs) and (2) IBM’s contracts, including the IBM Customer Agreement and
> the
> License Agreement for Machine Code, prohibit software (a) that enables
> workloads not expressly authorized by IBM to be processed on Specialty
> Engines or (b) that circumvents IBM’s technological measures in Machine
> Code
> that protect the Built-in Capacity of Specialty Engines and enables
> workloads not expressly authorized by IBM to be processed on Specialty
> Engines. Neon has agreed to a permanent injunction under which it will
> withdraw zPrime from the market and request that licensees and customers
> remove and destroy their copies of zPrime. Neon will not renew, extend or
> transfer any existing zPrime license or any warranty, maintenance or
> service
> period of any existing zPrime license (or any portion thereof).”
>
> NEON filed suit against IBM in the U.S. District Court for the Western
> District of Texas in December 2009, claiming IBM was using anticompetitive
> mainframe tactics. IBM came back and countersued NEON in January of 2010
> for
> unfair business practices and anticompetitive behavior of its own, namely
> copyright violation. NEON then amended its complaint in February 2010
> sharing more specific details of IBM’s alleged anticompetitive behavior.
>
> In a June 2009 press release announcing zPrime, NEON said:
>
> “NEON zPrime can save companies with System z mainframes 20 percent or more
> of their annual mainframe hardware and software costs under conventional
> use-pricing structures. Unlike any approach to date that attempts to
> offload
> processing from a System z central processor, or CP, to IBM specialty
> processors such as System z Integrated Information Processor (zIIP) or
> System z Application Assist Processors (zAAP), zPrime easily enables the
> shift of huge amounts of routine workloads running on CPs to these
> equally-fast but lower-cost specialty processors.”
>
> Meanwhile, this settlement with IBM does not affect any other NEON
> products,
> the company said.
>
>
> http://www.eweek.com/c/a/IT-Infrastructure/NEON-Settles-Mainframe-Software-L
> awsuit-with-IBM-848628/<http://www.eweek.com/c/a/IT-Infrastructure/NEON-Settles-Mainframe-Software-L%0Aawsuit-with-IBM-848628/>
>
>
> Lizette
>
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