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Short Take: KBT sues IBM

New Jersey-based fraud detection technology company Knowledge Based Technologies filed suit against IBM for allegedly violating KBT's patent and copyrights and for failing to honor a royalty agreement. The suit alleges that IBM violated the terms of a 1993 technology transfer agreement that provided for seven years of royalties to be paid KBT by IBM for use of KBT's Fuzzy Logic Expert System in IBM's Fraud and Abuse Management System. IBM stopped payments after 27 months, claiming to have independently developed its own technology. The suit alleges that IBM cloned KBT's technology instead of independently developing an alternative.

New Jersey-based fraud detection technology company Knowledge Based Technologies filed suit against IBM for allegedly violating KBT's patent and copyrights and for failing to honor a royalty agreement. The suit alleges that IBM violated the terms of a 1993 technology transfer agreement that provided for seven years of royalties to be paid KBT by IBM for use of KBT's Fuzzy Logic Expert System in IBM's Fraud and Abuse Management System. IBM stopped payments after 27 months, claiming to have independently developed its own technology. The suit alleges that IBM cloned KBT's technology instead of independently developing an alternative.