A federal judge has ordered IBM to pay BMC $1.6 billion for “intentional wrongdoing” when it poached mutual clients from the latter.
According to Bloomberg, IBM and BMC had an agreement that governed how they would operate, especially when it came to mutual clients. The agreement forbade IBM from trying to poach those clients, but BMC accused IBM of doing just that. In particular, BMC accused IBM of swapping out its software when servicing AT&T, their mutual customer. A judge agreed, fining IBM $1.6 billion.
IBM tried to claim that AT&T voluntarily dropped BMC and switched to its software on its own accord. If that were true, IBM claimed it would be allowed under the terms of the agreement. The judge didn’t buy IBM’s argument, saying its actions âsmacked of intentional wrongdoing.â
US District Judge Gray Miller had harsh words for IBM, saying the company âbelieved — especially in light of BMCâs reluctance to engage in litigation — that it could âalways settle for a small percentage of the claimâ or for âpennies on the dollar.ââ The judge continued, saying âIBMâs conduct vis-Ă -vis BMC offends the sense of justice and propriety the public expects from American business.â