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Compuware, IBM settle lawsuit

Companies announce $400 million settlement in their long-running copyright infringement case.

Compuware and IBM announced a $400 million settlement Tuesday in their long-running copyright infringement case.

Under the four-year agreement, IBM will pay independent software vendor Compuware $140 million to license its software and $260 million to purchase its services. The settlement comes as the parties enter the sixth week in a federal court trial.

"Compuware software and services will help IBM increase productivity and reduce costs throughout its business and the businesses of its customers," Peter Karmanos Jr., Compuware's chief executive officer, said in a statement. "Compuware is committed to continue providing value to IBM and to the customers of IBM technology."

Back in 2002, Compuware filed a lawsuit against IBM, alleging Big Blue infringed on its copyright code in IBM File Manager and Fault Analyzer products.

Compuware also alleged in its lawsuit that IBM had used its market dominance in the mainframe hardware and software markets to engage in unfair business practices and reduce competition. Compuware specifically claimed that IBM withheld technical information from it and other independent software vendors.

The settlement also calls for the companies to exchange technical information for interoperability of IBM and Compuware S/390 architecture and programs, as well as to enter a cross-licensing agreement that covers patents for both companies' businesses.