The factual witnesses
The factual witnesses
IBM relied on evidence from the following factual witnesses, who produced witness statements and gave oral evidence:
Steve Wallin, executive product development leader at IBM;
Ian Lyon, First Line Sales Manager of Systems business at IBM;
Paul Knight, Sales Manager with responsibility for Winsopia;
Emma Wright, IBM’s Head of Legal, UK and Ireland;
Mark Anzani, Special Projects Executive at IBM Corp;
Ian Mitchell, IBM Z Strategic Modernisation Leader at IBM.
The court heard oral evidence from the following factual witnesses who produced witness statements on behalf of the defendants:
Thilo Rockmann, fifth defendant, CEO of LzLabs, Director of Winsopia and Director of LzLabs UK;
Jan Jaeger, Chief Technology Officer and Chief Software Architect at LzLabs;
Christian Wehrli, former Vice President of Product Delivery at LzLabs;
David Bond, Senior Software Developer at LzLabs;
Brad Taylor, Senior Software Developer at LzLabs;
Christopher Palmer, Software Engineer at Winsopia;
Keith Rastall, General Manager of Winsopia;
John Moores, the sixth defendant, principal investor in the LzLabs Group and Winsopia;
Mark Cresswell, fourth defendant, CEO and Director of LzLabs and former Director of Winsopia and LzLabs UK;
Gary Whittingham, Senior Software Engineer at Winsopia;
Alan Playford, Systems Consultant at Winsopia;
Thomas Grieve, Senior Mainframe Systems Engineer at Winsopia;
Kevin Lynch, Senior Mainframe Systems Engineer at Winsopia;
John Bray, Mainframe Systems Engineer at Winsopia.
The defendants also relied on witness statements produced by the following witnesses who were not required to give oral evidence (without any admissions as to the contents of their statements):
Daniel Hedley, solicitor who provides advice and legal services to LzLabs and Winsopia;
Eric Spencer, Senior Software Developer at LzLabs;
Bryan Young, Head of IT Infrastructure at LzLabs;
Martin Bleach, Quality Assurance Engineer at LzLabs.
The court received reports and heard oral evidence from the following experts for IBM:
Michael Swanson, a former software designer for IBM mainframe systems and an IBM fellow with over thirty years’ experience as a systems programmer, who produced his first report dated 9 January 2024, second report dated 20 March 2024 and third report dated 24 June 2024;
Professor Jon Weissman, a Professor of Computer Science at the University of Minnesota, who produced his first report dated 6 January 2024, second report dated 19 March 2024 and third report dated 24 June 2024.
The court received reports and heard oral evidence from the following experts for the defendants:
Professor Alastair Donaldson, a Professor in Computing at Imperial College London, who produced his first report dated 27 February 2024, an addendum report dated 3 April 2024, second report dated 25 April 2024 and third report dated 30 May 2024;
David Stephens, the Lead Systems Programmer and owner of Longpela Expertise, an Australian mainframe consultancy company, with over thirty years’ experience working with IBM mainframes, who produced his first report dated 20 February 2024, a technical primer dated 20 February 2024 and second report dated 31 May 2024.
It is clear that each of the above individuals acquired a deep understanding of the technical issues in dispute and used his considerable intellectual understanding and expertise to assist the court. In particular, the court had the benefit of very clear and helpful joint statements from the experts, setting out their agreements and individual opinions on matters on which they disagreed:
first Expert Joint Statement dated 15 December 2023;
second Expert Joint Statement dated 5 April 2024;
Joint Primer dated 10 April 2024;
third Expert Joint Statement dated 19 April 2024.
I am very grateful to the experts for their careful consideration of the expert issues and their co-operation in producing materials to assist the court to determine the numerous technical issues in this case.
Likewise, I express my thanks to counsel on both sides for their clear and percipient cross-examination and submissions, and for their co-operation in ensuring that the hearing was conducted in a respectful and efficient manner.
- Heading
- Mrs Justice O’Farrell
- Section II - Background to the dispute
- The SDM
- Hercules
- Neon litigation
- Formation of LzLabs and Winsopia
- The ICA
- SDM development and the clean room procedures
- Launch of the SDM
- Project Eiger
- Further development of the SDM
- Audit request and termination
- Section III - The proceedings
- The Issues
- The factual witnesses
- Section IV - Construction of the ICA
- Approach to construction of the ICA
- Scope of licence
- The ICA Programs
- Customer applications
- Licensed Program Specifications
- Independent software vendors (ISVs)
- Debugging tools
- Restrictions on use of ICA Programs
- Legislative framework
- Berne Convention
- TRIPS
- WIPO
- Software Directive
- Copyright, Designs and Patents Act 1988 (CDPA)
- Applicable legal principles
- Conclusions on ICA
- Section V - Alleged breaches of the ICA
- Disassembly, decompilation and translation
- Item 2: Load Module Decompiler (“the LMD”) (Paragraph 11.2 of the Technical Particulars)
- Item 3: CICS Control Blocks Document (Paragraph 11.3 of the Technical Particulars)
- Item 4: EXEC DLI (Paragraphs 27.18 & 28.19 of RRRAPOC)
- Item 5: IBM Binder Software (Paragraph 11.4 of the Technical Particulars)
- Compiler listings – summary of the dispute
- Item 6: IGZCIVL COBOL runtime module (Paragraph 11.6 of the Technical Particulars)
- Item 7: CICS Translators (Paragraph 20.1-2 of the Technical Particulars)
- Item 8: Floating point rounding rules (Paragraph 20.3 of the Technical Particulars)
- Item 9: IBM PL/1 compiler (Paragraph 20.4 of the Technical Particulars & Paragraph 27 of the POC)
- Item 10: XML Parse statements (Paragraphs 33-38 of the Technical Particulars)
- Item 11: COBOL initialisation, branching and I/O declaratives (Paragraphs 27.4&27.5 RRRAPOC)
- Item 12: PL/I Condition handling (Paragraphs 27.10-27.12 of RRRAPOC)
- Reverse engineering through the systematic use of traces, dumps, slip traps, packet sniffing and other debugging tools techniques – summary of the dispute
- Item 13: CICS-to-CICS communications (Paragraph 28.1 of the Technical Particulars)
- Item 14: AMBLIST analysis of CICS Stubs (Paragraph 28.2 of the Technical Particulars)
- Item 15: Colesoft z/XDC and COBOL initialisation (Paragraph 28.3 of the Technical Particulars)
- Item 16: XDC and IMS (Paragraph 28.4 of the Technical Particulars)
- Additional examples
- Item 17: SLIP Traps and CICS (Paragraph 28.5 of the Technical Particulars)
- Item 18: SLIP Traps and COBOL (Paragraph 28.6 of the Technical Particulars)
- Macros and Copybooks - introduction
- Macros (Paragraphs 32.1-32.9 of the Technical Particulars) – summary of the dispute
- Item 19: DR-3246 (Paragraph 32.1 of the Technical Particulars)
- Item 20: DR-10237 (Paragraph 32.2 of the Technical Particulars)
- Item 21: DR-2753 (Paragraph 32.3 of the Technical Particulars)
- Item 22: DR-2771 (Paragraph 32.4 of the Technical Particulars)
- Item 23: DR-2796 (Paragraph 32.5 of the Technical Particulars)
- Item 24: DR-3280 (Paragraph 32.6 of the Technical Particulars)
- Item 25: DR-4281 (Paragraph 32.7 of the Technical Particulars)
- Item 26: DR-4322 (Paragraph 32.8 of the Technical Particulars)
- Item 27: DR-0847 (Paragraph 32.9 of the Technical Particulars)
- Macros - discussion
- Copybooks (Paragraphs 2.1.1.3 and 32.10-32.12 of the Technical Particulars) – nature of the dispute
- Item 28: DR-715 (Paragraph 32.10 of the Technical Particulars)
- Item 29: DR-753 (Paragraph 32.11 of the Technical Particulars)
- Item 30: DR-756 (Paragraph 2.1.1.3 of the Technical Particulars)
- Copybooks - discussion
- Transferring “unscrubbed” materials
- Item 31:Epiphany
- Item 32: Db2 Catalog table metadata
- Item 33: DSS dump
- Item 34: Kednos
- Item 35: CSECTs deliberately omitted from scrubbing
- Items 36 and 42: Unscrubbed CSECTs
- Items 37 and 40: IMS PROCLIB & DLIBATCH
- Item 38: DFHEI1 module
- Item 39: IGZXANE
- Item 41: IGZXNE3N
- Item 43: CEEBETBL, CEEBLLST, IBMPINPL & CEESG*
- Item 44: DR-4617
- Item 45: DR-171
- Item 46: Scrubbing failures
- Item 47: @@TRGLOC CSECT
- Item 48: PARMLIB & PROCLIB
- Use outside Enterprise and beyond Designated Machine
- Item 49: Brad Taylor (Paragraph 44.2 of the Technical Particulars)
- Item 50: Winsopia Pizzabox (Paragraph 44.5 of the Technical Particulars)
- Item 51: Justin Bendich (Paragraph 44.6 of the Technical Particulars)
- Conclusions on technical breaches
- Section VI - Wrongful procurement of breach
- Applicable legal principles
- LzLabs
- LzLabs UK
- Claims against the directors
- Mr Moores
- Summary on unlawful procurement
- Section VII - Unlawful means conspiracy
- Applicable legal principles
- Knowledge of unlawfulness
- Summary on unlawful means conspiracy
- Section VIII – Audit and Termination
- Validity of audit request
- Validity of termination
- Section IX - Limitation
- Contractual limitation
- Statutory Limitation
- Deliberate concealment
- Finding - section 32(1)(b)
- Finding - Section 32(2)
- Actual or constructive knowledge – legal principles
- Date of knowledge issues
- ICA 2013
- Mr Knight - 2017
- Mr Anzani - 2018
- Conclusions
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