27. March 2025
Big Tech Rivalry Heats Up: Broadcoms Vmware Sues Siemens Over Pirated Software
In a shocking turn of events, Broadcom’s VMware has filed a lawsuit against the US arm of industrial giant AG Siemens, alleging that the company pirated “thousands” of copies of its software. The lawsuit, filed on March 21 in the US District Court for the District of Delaware, marks a significant development in the ongoing battle between tech giants and software piracy.
The dispute at the heart of the case centers around a Master Software License and Service Agreement between VMware and Siemens that has been in place since November 28, 2012. The agreement outlines the terms and conditions under which Siemens would be allowed to use VMware’s software, including virtualization technology, for its industrial operations. However, it appears that Siemens took advantage of this agreement by secretly downloading and distributing thousands of copies of VMware products without obtaining a license.
According to VMware’s complaint, Siemens sent a purchase order in September seeking maintenance and support services for a range of VMware technologies. While the company had previously expressed interest in renewing its support contract, the lawsuit reveals that Siemens was attempting to exercise an option to purchase a one-year renewal of support services for products for which it had never purchased a license.
The complaint paints a disturbing picture of software piracy, with VMware alleging that Siemens downloaded and copied thousands of copies of its software without permission. The company claims that this action constitutes a breach of the Master Software License and Service Agreement, as well as federal copyright laws.
One of the most striking aspects of the lawsuit is the scale of Siemens’ alleged wrongdoing. According to VMware, Siemens revealed in September that it had downloaded and distributed thousands of copies of its software without a license. This staggering figure suggests that the company’s actions may have far-reaching consequences for both companies involved.
The implications of this lawsuit extend beyond the two companies, however. Software piracy is a significant problem in the tech industry, with billions of dollars lost each year to unauthorized use and distribution of software. By holding Siemens accountable for its actions, VMware is sending a clear message that software piracy will not be tolerated.
The Master Software License and Service Agreement between VMware and Siemens serves as a model for other companies seeking to protect their software from unauthorized use. However, the case also underscores the need for vigilance and monitoring to ensure that these agreements are being respected.
In recent years, there have been several high-profile cases of software piracy in the tech industry. In 2020, a Chinese company was fined $2.7 million for pirating Microsoft software. Similarly, in 2019, a group of companies in South Africa were ordered to pay $10.5 million in damages after being found guilty of distributing pirated copies of Adobe software.
The case against Siemens serves as a reminder that intellectual property theft can have serious consequences. As the tech industry continues to evolve and grow, it is essential that companies prioritize protecting their software and other intellectual property.
VMware is seeking damages and injunctive relief to prevent further unauthorized use of its software. Additionally, the court may order Siemens to pay royalties or licensing fees on a going-forward basis, depending on the outcome of the case.
As the lawsuit against Siemens continues to unfold, it remains to be seen how the company will respond. However, one thing is clear: software piracy will not be tolerated in the tech industry, and companies like VMware are committed to protecting their intellectual property.
Companies looking to engage with VMware’s software must prioritize due diligence and ensure they have the necessary permissions before using its software. Failure to do so can result in significant financial penalties and reputational damage.
The implications of this lawsuit extend beyond the two companies, serving as a reminder that intellectual property theft can have serious consequences. By prioritizing protection of their software and other intellectual property, companies like VMware are committed to safeguarding the integrity of the tech industry.
The case also highlights the importance of effective licensing agreements in protecting intellectual property. While the Master Software License and Service Agreement between VMware and Siemens serves as a model for other companies, the case underscores the need for vigilance and monitoring to ensure that these agreements are being respected.