Neon Enterprise Software LLC v. International Business Machines Corp.

Neon sued IBM alleging exclusionary conduct, monopolization, and unfair competition in the markets for mainframe computer hardware and operating systems. Neon had developed software which enabled users to maximize the utilization of IBM’s so-called “specialty processors,” enabling the users to reduce both hardware and software mainframe costs. IBM countersued, maintaining that the use of Neon’s software violated mainframe users’ contractual agreements with IBM.

Econ One was retained by counsel for Neon to analyze the effects of IBM’s challenged conduct on Neon’s profits and IBM’s revenues. In the course of that work, Econ One developed a computerized model of IBM’s mainframe hardware and software pricing.  The matter was resolved when the parties agreed to settle all claims prior to trial.