IBM Failed to Get Turbonomic’s Rights in Densify Pact Via Merger

IBM Corp.’s acquisition last year of Turbonomic Inc. didn’t effectuate an assignment to IBM of the Boston-based company’s rights under a settlement agreement in patent-related cross-litigation with Densify, a Delaware Chancery Court judge ruled.

IBM acquired Turbonomic, a provider of software for managing application resources and network performance, for $1.83 billion in a deal that closed last June, according to IBM’s annual earnings report.

The Chancery Court dispute is rooted in competing patent-infringement cases between the parties that began in April 2020, when Densify, a maker of cloud computing software officially named Cirba Inc., filed suit against Turbonomic ...