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IBM sues Compuware over patent

Latest salvo between companies seeks to bar sales of products with Big Blue technology

IBM has fired the latest legal volley in an ongoing dispute with Detroit-based Compuware Corp., charging the software company with patent infringements.

A new lawsuit by International Business Machines Corp., filed last Friday in federal court in White Plains, N.Y., seeks unspecified monetary compensation and a court order stopping Compuware from selling any products using IBM technology.

A hearing will be scheduled at a future date.

On Tuesday, Compuware officials called the compliant ridiculous.

The companies' legal confrontations began in 2002 when Compuware sued IBM for allegedly stealing whole pages of its software manuals.

That suit also charges that IBM forces its customers to buy its own software if they purchase an IBM mainframe computer, cutting out sales by competitors such as Compuware.

That suit is scheduled to be heard Sept. 7 in U.S. District Court in Detroit.

Last summer Compuware Chairman Pete Karmanos and IBM chief executive Sam Palmisano met in an unsuccessful effort to hammer out an agreement.

U.S. Judge Steeh said he ordered the meeting to spare both companies a lot of time and expense.

After a six-month wait, U.S. Judge George Steeh recently turned down Compuware's request to force IBM to refrain from selling software involved in the suit.

In his ruling, Steeh said Compuware failed to prove that IBM had stolen trade secrets. Steeh also said in the ruling that Compuware did not establish that IBM's advertising deceived customers. And he said Compuware hurt its position by waiting more than two years to sue to stop IBM from selling the software.

Thomas Costello Jr., Compuware's general counsel, said Tuesday that the latest lawsuit by IBM lists seven counts of patent infringements. The Compuware software includes !QACenter, an automated testing product, and DevPartner, software development tools both used on mainframe computers.

"We still looking at the lawsuit," Costello said. "But we're absolutely still selling the products. This has nothing more to do than IBM trying to get the upper hand and bullying us into some kind of settlement."

IBM is the world's second- largest software maker next to Microsoft Corp. Compuware is a leading provider of software and technology services to corporations.

Compuware recently moved its headquarters from Farmington Hills into its new $350 million office building in downtown Detroit.

Compuware's stock closed Tuesday at $7, down 3 cents a share.

Bloomberg News contributed to this report. You can reach Joel Smith at (313) 222-2556 or jsmith_!AT_detnews.com.

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