Compuware and IBM Ink $400 Million Software and Services Relationship; Settle All Outstanding Litigation

Compuware Corporation (NASDAQ: CPWR) has entered into a software, services and technology relationship with IBM and settled all outstanding litigation between the enterprises. As a result of this agreement, IBM will license $140 million of Compuware software over four years and has offered to purchase $260 million of Compuware services over four years.

"This agreement benefits the customers, shareholders and employees of both IBM and Compuware," says Compuware Chairman and CEO Peter Karmanos, Jr. "Compuware software and services will help IBM increase productivity and reduce costs throughout its business and the businesses of its customers. Compuware is committed to continue providing value to IBM and to the customers of IBM technology."

  • The agreements announced today between Compuware and IBM includes provisions related to:
    IBM Purchase of Compuware Products and Services-IBM will license $140 million of Compuware software over four years and has offered to purchase $260 million of Compuware services over four years. Compuware and IBM will establish a joint task force to ensure that IBM obtains maximum value from Compuware solutions.
  • Technical Collaboration-IBM and Compuware will exchange technical information for the interoperability of IBM and Compuware S/390 architecture and programs. Compuware continues as a member of IBM's PartnerWorld program, under which it receives technical information generally made available to other independent software vendors.
  • Reciprocal Patent License Agreement-IBM and Compuware have entered into a patent cross-licensing agreement, covering patents related to both companies' businesses.
  • Settlement of Pending Litigation - IBM and Compuware have settled all outstanding claims between the two companies, including pending litigation.
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