Tuesday, March 11, 2008

IBM Hit with $6 Million Software Fraud Suit

On March 10, 2008, internet retailer Harry and David claimed that IBM, sold it e-commerce software that violated other companies' patents but then IBM refused to back the merchant when those companies being sued or complained to IBM. Harry and David also claimed that IBM knew that the software that it sold had already been discovered to violate patents help by the NCR and Charles Hill & Associates.

The software that IBM sold includes a version 5.6 of IBM Websphere Commerce, together with the earlier version of it. This software provides numerous tools that businesses can adopt and use to create websites and transact sales over the Internet. It is a software that helps in open the route for e-commerce for a company. Over this issue, Harry and David is seeking a minimum of $6 million in costs and damages from IBM for alleged fraud and breach of contract.

The problems lie between this issue is that, after Harry and David purchased the software, only the NCR notified them that the software had been violated the NEC patents. For this, Harry and David also being sued for patent infringement by Charles Hill in June of 2007.

After the incident, IBM is still market the e-commerce programs to the general public without informing the public about the violation of patent liability issues. For a big and international company like IBM, this is an irresponsible act. Before selling or publishing the software, they should have obtain agreement from the necessary parties. Even so, they should not have still market it to the public when they found out that their software actually violate the patents of NCR.

The act of irresponsible not only will affect the customers, by involving them in a law suit, it will also affect the reputation of IBM. I totally agree that Harry and David should sue the company for causing them involved in a law suit. What is your opinion then?


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