IBM United Kingdom Ltd v LzLabs GmbH & Ors [2025] EWHC 998 (TCC) (24 April 2025)

IBM United Kingdom Ltd v LzLabs GmbH & Ors [2025] EWHC 998 (TCC) (24 April 2025)

The First, Second, and Sixth Defendants breached the ICA and procured breaches, resulting in liability for unlawful means conspiracy. The SDM is tainted by misuse of ICA Programs, justifying broad injunctive relief prohibiting its marketing, sale, and dissemination. Declaratory relief as to lawful termination of the ICA is appropriate. The Claimant is the successful party and entitled to costs on the standard basis, jointly and severally, with an interim payment of £20 million. A stay of injunctive relief is granted pending appeal, but not for other orders.

Citation
[2025] EWHC 998 (TCC)
Parties
Claimant: IBM United Kingdom Limited; First Defendant: LZLABS GmbH; Second Defendant: Winsopia Limited; Third Defendant: LZLABS Limited; Fourth Defendant: Mark Jonathan Cresswell; Fifth Defendant: Thilo Rockmann; Sixth Defendant: John Jay Moores
Jurisdiction
England and Wales
Judgment Date
24 April 2025
Procedural Posture
Commercial Technology Dispute / Post Liability Judgment; Consequentials Hearing
Outcome
Injunctive relief granted against First, Second, and Sixth Defendants; declaratory relief granted as to lawful termination; costs awarded to Claimant on standard basis, jointly and severally; interim payment of £20 million ordered; stay of injunctive relief pending appeal; permission to appeal refused.
Legal Topics
Breach of Contract, Procurement of Breach, Unlawful Means Conspiracy, Injunctive Relief, Declaratory Relief, Costs, Software Licensing, Limitation, Remedies
Commercial Law Intellectual Property Contract Law Tort Law Breach of Contract Procurement of Breach Unlawful Means Conspiracy Injunctive Relief +5 more

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Parties

IBM United Kingdom Limited

Claimant

LZLABS GmbH

First Defendant

Winsopia Limited

Second Defendant

LZLABS Limited

Third Defendant

Mark Jonathan Cresswell

Fourth Defendant

Thilo Rockmann

Fifth Defendant

John Jay Moores

Sixth Defendant

Procedural Posture

Commercial Technology Dispute / Post Liability Judgment; Consequentials Hearing

Legal Issues

  1. 1 Whether the defendants breached the ICA and procured breaches
  2. 2 Whether the SDM is tainted by unlawful use of ICA Programs
  3. 3 Whether injunctive relief should be granted against the defendants

Ratio Decidendi

The First, Second, and Sixth Defendants breached the ICA and procured breaches, resulting in liability for unlawful means conspiracy. The SDM is tainted by misuse of ICA Programs, justifying broad injunctive relief prohibiting its marketing, sale, and dissemination. Declaratory relief as to lawful termination of the ICA is appropriate. The Claimant is the successful party and entitled to costs on the standard basis, jointly and severally, with an interim payment of £20 million. A stay of injunctive relief is granted pending appeal, but not for other orders.

Court Disposition

Injunctive relief granted against First, Second, and Sixth Defendants; declaratory relief granted as to lawful termination; costs awarded to Claimant on standard basis, jointly and severally; interim payment of £20 million ordered; stay of injunctive relief pending appeal; permission to appeal refused.

Orders

  • First, Second, and Sixth Defendants to deliver up or destroy all copies of ICA Programs by 16 July 2025, supervised by independent forensic IT firm.
  • First, Second, and Sixth Defendants prohibited from marketing, selling, or disseminating the SDM or services derived from it, with a 10-month run-off for existing customers, subject to stay pending appeal.