VMware Siemens Licensing Dispute: Location Battle
- Siemens AG is seeking to dismiss a lawsuit filed by VMware in a U.S.court, arguing the case should be heard in Germany.
- VMware initiated legal action in March, claiming Siemens and its U.S.
- Following Broadcom's acquisition, VMware altered its licensing model, bundling support with subscriptions.Siemens, like AT&T in a similar case, attempted to secure additional support without transitioning to a subscription...
Siemens and VMware are locked in a licensing dispute, with Siemens aiming to move the lawsuit to Germany, marking the primary conflict. VMware alleges unlicensed software usage by Siemens and its U.S. affiliates, a claim central to the charges.The core of the debate stems from disagreements over licensing models, the terms of a Master Software License Agreement (MSLA) and the jurisdiction for contract disputes. Following Broadcom’s acquisition and VMware’s subscription shift, the legal battle centers on where this will be adjudicated. Siemens contests that the German court is the appropriate venue referencing the MSLA. VMware argues for a Delaware trial. News Directory 3 is following this story. What court prevails in this vmware licensing war? Discover what’s next as the court weighs the case.
VMware, Siemens in Court Over Software Licenses
Siemens AG is seeking to dismiss a lawsuit filed by VMware in a U.S.court, arguing the case should be heard in Germany.
VMware initiated legal action in March, claiming Siemens and its U.S. affiliates used numerous instances of unlicensed software. The dispute arose during negotiations for extended support contracts on Siemens’ perpetual licenses.
Following Broadcom’s acquisition, VMware altered its licensing model, bundling support with subscriptions.Siemens, like AT&T in a similar case, attempted to secure additional support without transitioning to a subscription model.
VMware contends that a list of software provided by Siemens during support negotiations revealed usage exceeding license allowances. Subsequent failed negotiations led to the lawsuit.
Siemens, responding to VMware’s accusations in the District Court of Delaware, cited a Master Software License Agreement (MSLA) with VMware International unlimited Company, an Irish entity. The agreement contains a clause designating Munich courts as the jurisdiction for contract disputes.
Siemens argues VMware acknowledged this clause through prior correspondence in Germany,and is requesting the Delaware court to dismiss the case.
VMware counters that the presence of unlicensed software usage by siemens’ U.S.-based companies justifies a trial in Delaware.
The companies also disagree on whether copyright law is the appropriate basis for the case. Siemens maintains the dispute centers on a contract, while VMware asserts U.S. copyright law protects its software, making an American court the proper venue.
Siemens further claims it does not control the U.S. entities named in the suit, a point VMware disputes.
The court has not yet issued a public statement. The case file contains sealed documents.
the legal battle continues.