VMware and Siemens are arguing over the location of a lawsuit concerning software licenses. Siemens wants the case to be heard in Germany. However, VMware initiated proceedings in the United States.
This was reported by The Register. In March, VMware accused Siemens and several of its US subsidiaries of repeatedly using unauthorized VMware software. These allegations came to light during negotiations on the renewal of support contracts for existing perpetual software licenses held by the German company.
After the takeover by Broadcom, VMware stopped selling separate support contracts for permanent licenses. The company switched to combined subscriptions with support. Siemens, like AT&T before it, tried to purchase additional support without switching to this new subscription model.
During the negotiations, the German multinational provided an overview of the VMware software it used. Based on this, VMware concluded that Siemens was using more software than it had licenses for. When the talks broke down, VMware took the matter to court.
Munich court to rule
The Delaware court gave Siemens until June 10 to respond to the charges. On that day, Siemens submitted various documents and argued that a master agreement had been in place with VMware’s Irish branch for years. This agreement states that legal disputes must be submitted to the court in Munich. Siemens points out that both parties have already corresponded ten times on this issue in Germany, which, according to the company, demonstrates that VMware recognizes this agreement. On that basis, Siemens asked the US court to dismiss the case.
VMware responded that the case belongs in Delaware because the alleged license violations took place in the US at American companies affiliated with Siemens.
In addition, the companies disagree on the nature of the dispute. Siemens considers it a contract matter. VMware sees the issue as a copyright infringement, which, according to the company, makes a US court competent. Siemens further claims that it has no control over the US entities that VMware has sued. VMware, on the other hand, argues that these companies have indeed been sued correctly.
The court has not yet issued a public ruling. However, the case file contains documents that have not (yet) been made public.