VMware Accuses Siemens of Unauthorized Software Use

VMware, a subsidiary of Broadcom, has initiated legal action against Siemens AG, alleging that the industrial conglomerate improperly downloaded and distributed numerous copies of its software without obtaining the necessary licenses. The lawsuit was filed in the U.S. District Court for the District of Delaware, highlighting serious concerns over software piracy.

According to VMware's complaint, the two companies have had a Master Software License and Service Agreement in place since November 2012. In September, Siemens reportedly submitted a purchase order to VMware for maintenance and support services but included a list of VMware products that the company had not officially licensed. This list purportedly revealed that Siemens had downloaded and deployed thousands of copies of VMware software without authorization.

The legal documents indicate that Siemens' actions came to light when it attempted to renew its support services for a one-year period following the expiration of the existing agreement in September 2024. VMware claims that the request included a significant number of products for which no license had been acquired by Siemens.

In the course of the interactions, Siemens insisted on the accuracy of its list and demanded support from VMware. Despite recognizing the discrepancy, VMware chose to provide the requested services to avoid any disruption to Siemens' operations, particularly in light of potential legal threats from Siemens itself.

Furthermore, VMware alleges that Siemens was uncooperative during attempts to conduct an audit of its software usage. The company sought to run a script on Siemens' systems to ascertain the extent of VMware software in use. VMware believes that the list provided by Siemens accurately reflected the software it had deployed, suggesting the firm was aware of the implications of its actions regarding software licensing.

As part of its lawsuit, VMware is requesting a jury trial, along with damages and any profits that may be attributed to Siemens' alleged infringement of VMware's copyrighted products.

This conflict is the latest in a series of licensing disputes VMware has faced since its acquisition by Broadcom. The company has been under scrutiny from customers and partners following Broadcom's decision to discontinue perpetual licensing options for VMware products. In another notable case, Broadcom was sued by AT&T over allegations of improperly denying a one-year renewal for support services, which was ultimately settled without public disclosure of the terms.