In a written response to an earlier lawsuit by IBM(R), Platform
Solutions, Inc. (PSI) announced today that it has filed its own claims
against IBM in the United States District Court for the Southern
District of New York alleging antitrust violations, unfair
competition, and business torts. In its response, PSI also strongly
denied IBM's claims.
PSI's response is based on IBM's efforts to maintain its monopoly
power and to prevent the development of a competitive alternative to
IBM's mainframe products. The company is seeking damages based on the
harm that IBM's conduct has caused and is causing to PSI, as well as
an injunction and/or remedies to prevent IBM from harming PSI in the
future.
"PSI believes it has a compelling legal position and that it will
prevail in court," said Christian Reilly, vice president product
management and marketing. "This conflict is really all about the
fundamental values of consumer choice and competition benefiting
customers throughout the world who use mainframe computers to run and
manage mission-critical applications."
This case has broad implications because mainframe computers are
essential for all key industries in our economy. Because the last
remaining competing manufacturers of "plug-compatible mainframes"
exited the market in 2000, PSI's products provide the only viable
alternative to IBM -- in a market where IBM has held a monopoly
position for decades.
"IBM's lawsuit against PSI is part of a concerted effort to
eliminate competition for mainframe computers, and its refusal to
provide the operating systems needed to run mainframe computers to PSI
customers is blatantly anti-competitive," Reilly said. "IBM's claims
also reflect a reversal of its long-standing practice of licensing its
intellectual property on reasonable and non-discriminatory terms -- a
policy that it trumpeted on its web site until last year. What IBM is
trying to do here would be the equivalent to a hypothetical situation
in which Microsoft had monopoly power in the markets for both PC's and
PC operating systems and then refused to license Windows(R) to HP(R),
Dell(R), or other PC manufacturers to maintain and sustain its
monopoly position."
Reilly additionally stated that, "IBM's predatory business
practices have affected our company, but PSI's open mainframe
computers have been well received by customers who value us as the
only alternative supplier in the marketplace."
In today's counterclaims PSI alleges that IBM has committed
extensive anticompetitive practices, including the following:
-- Tying its mainframe operating systems to its mainframe
computers by conditioning sales of its operating systems on
the purchase or continued use of only those IBM-compatible
mainframe computers that are manufactured by IBM;
-- Refusing to supply its operating systems to end-user customers
who choose to purchase PSI's IBM-compatible mainframe computer
systems;
-- Restricting PSI's access to interface information and
specifications needed to remain compatible with IBM's
operating systems;
-- Unreasonably discontinuing its long-standing practice of
licensing any applicable intellectual property rights on
reasonable and non-discriminatory terms;
-- Disseminating Fear, Uncertainty and Doubt concerning the
reliability, compatibility and viability of PSI's products;
and
-- Interfering with PSI's ability to complete fundamental
transactions with its business partners.
"PSI is determined to return competition to the marketplace and
will vigorously fight and defend our right to provide customers with
choice," Reilly said.
About PSI
Platform Solutions, Inc., (PSI) develops Open Mainframe
Computers(TM) compatible with the broadest set of datacenter
environments and operating systems, including IBM z/OS(R). The new PSI
systems are based on proven systems architecture spun-off from Amdahl
Corporation and industry standard Dual-Core Intel(R) Itanium(R) 2
processor technology, and provide customers true choice and
flexibility in mainframe computing. The company was launched in 2003
and is funded by leading venture and strategic investors, including
Blueprint Ventures, Goldman Sachs, Intel Capital, Interwest, and
Investcorp. The company is based in Sunnyvale, California.
For more information please visit www.platform-solutions.com.
