IBM UK Ltd v LzLabs GmbH & Orrs [2025] EWHC 532 (TCC)

Following a 10 week trial in 2024, O’Farrell J handed down judgment in this case which featured as one of The Lawyer’s Top 20 Cases of 2024. The Judge determined that the Defendants’ development of their Software Defined Mainframe software platform had been in breach of IBM’s standard form license agreement into which the Second Defendant had entered. Specifically the Judge held that the Second Defendant’s acts amounted to a process of reverse engineering and did not fall within any of the protections provided by Articles 5(1), 5(3) or 6(1) of the Software Directive. The Judge further held that the Second Defendant’s acts had been procured by two of the other Defendants and that they had all participated in an unlawful means conspiracy, and that any limitation defence failed because of concealment.

Mark Vanhegan KC, together with Jaani Riordan and Joshua Marshall of 8 New Square, and Roger Stewart KC, Thomas Ogden, George McDonald,  instructed by Clifford Chance, acted for the Defendants.

[2025] EWHC 532 (TCC)

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