A federal appeals court on Tuesday overturned a judgment requiring IBM to pay rival BMC Software $1.6 billion, after a judge found IBM improperly replaced BMC's mainframe software at AT&T with its own.

IBM will not have to pay BMC Software $1.6 billion after successfully appealing a court judgment that found the IT infrastructure giant improperly replaced BMC’s mainframe software used at AT&T with its own. The Fifth US Circuit Court of Appeals said this week the judgment in the original 2022 case over IBM’s liability was made in error.

International Business Machines Corp. won a court decision overturning $1.6 billion in damages it was ordered to pay BMC Software Inc. in 2022 for swapping in its own software while servicing their mutual client,

In a momentous legal development, a federal appeals court has handed down a pivotal decision, overturning a substantial judgment that mandated technology juggernaut IBM to pay its rival BMC Software an eye-watering $1.

Always read the terms and conditions carefully IBM has managed to overturn a $1.6 billion judgment against it after an appeals court decided the IT giant was well within its rights to replace software on a customer mainframe belonging to rival BMC with its own code.