VMware scores early win in Siemens software licensing dispute
- Reference: 1770809990
- News link: https://www.theregister.co.uk/2026/02/11/vmware_siemens_tesco_litigation/
- Source link:
The case [1]commenced in March 2025, when VMware alleged Siemens' US operations provided it with a list of software for which it wanted to arrange extended support. That list, VMware claims, included plenty of software that Siemens had not licensed. Siemens later provided an amended list of the VMware software it uses.
VMware says it tried to conduct a license audit, but Siemens wouldn't participate. Siemens was upset that VMware did not honor what it felt was a right to acquire extended product support.
[2]
Siemens also referred to its contracts with VMware that it says state any dispute between the two must be heard in German courts. But VMware pointed out that as the alleged use of unlicensed software took place in the US, American courts were the appropriate jurisdiction in which to contest the matter.
[3]
[4]
On Tuesday, Magistrate Judge Laura D. Hatcher, of the Delaware District Court, indicated she likes VMware's argument, issuing a Report and Recommendation that Siemens' attempt to move the case to Germany be denied.
[5]Broadcom 'bulldozes' VMware cloud partners as March deadline looms
[6]Twist in Tesco vs. VMware case as Computacenter files claim against Broadcom, Dell
[7]VMware must support crucial Dutch govt agency as it migrates off the platform, judge rules
[8]VMware prevents some perpetual license holders from downloading patches
Reports of this sort are documents US courts use to indicate the logic and precedents likely to inform a future decision. As is often the case with these documents, this one gives both parties 14 days to file objections but limits those submissions to ten pages, a restriction intended to focus litigants on the issues raised in the report rather than exploring new arguments.
VMware therefore appears to be in a strong position to have this case heard in its preferred forum.
The virtualization giant has settled similar cases, but its dispute with UK retail giant Tesco continues.
[9]
Dell, which is a party to the matter, last month [10]filed its own claim stating it seeks almost £14 million in damages if Tesco prevails. ®
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[1] https://www.theregister.com/2025/03/26/vmware_sues_siemens_for_using/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aYy1twwdZtmUakr258cqZgAAAFA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYy1twwdZtmUakr258cqZgAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aYy1twwdZtmUakr258cqZgAAAFA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2026/01/31/broadcom_vmware_cloud_partners/
[6] https://www.theregister.com/2025/10/28/tesco_vs_broadcom_vmware_update/
[7] https://www.theregister.com/2025/06/30/dutch_agency_wins_right_to/
[8] https://www.theregister.com/2025/07/23/vmware_patch_download_problems/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aYy1twwdZtmUakr258cqZgAAAFA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2026/01/15/dell_vmware_claim_tesco_case/
[11] https://whitepapers.theregister.com/
Re: Who writes (and signs) these contracts ?
Even if the contract says that disputes are to be settled under German law - if the software they said they wanted to extend in the US isn't covered by that contract, then this isn't actually a contract dispute at all. It's a software piracy dispute. In which case it's the US subsidiary, so it would logically happen in the US courts.
Siemens have presumably refused to cooperate in an audit to see whether they're currently operating this software to try to get Broadcom to the negotiating table, and the response has been to call in the lawyers.
Broadcom are still in their zero tolerance, zero compromise mode. I guess because their whole strategy will fall apart if they start acting reasonably in a few cases. I guess they're going to test the theory to destruction that their software is irreplaceable.
> That list, VMware claims, included plenty of software that Siemens had not licensed.
This is something that just does *not* happen, not in corporate.
And since when you see VMware you read Broadcom (who made a hellish mess with VMware product's licensing) I'm inclined to think that they are mostly trying to spill money out of Siemens.
happens all the time
did you read the history of the case? It happens all the time, especially in huge companies like Siemens because there is one contract but x number of subsidiaries have access to the license keys and repositories and everyone assumes “we are covered under an ELA”, thinking it means “all you can eat”
Siemens went and kept installing vRealize everywhere.
That was bad but when you look closely, they actually had the entitlements, they were just locked into those weird bundles VMware kept releasing for a while.
But honestly, this is all on Siemens. They sent VMware a list of what they had installed so VMware could draw up a one year support renewal and when VMware got the list they saw that there is a lot more than Siemens ever bought licenses for. VMware tried to negotiate with them to fix this but Siemens refused and threatened to sue VMware if VMware doesn’t (de facto) give them support for products they never paid a license for.
Then Siemens said “oh, that list? Our bad, we made 1100 mistakes, here is a new one that’s almost exactly the numbers you said. Pinkie promise!”
I hate the guts of VMware, but Siemens was a huge asshole here
Overreach?
If the contract does say that all disputes are to be settled in Germany then the court is wrong. This is a civil case so where the violatipn took place isirrelevant. Mind you US courts have a habit of deluding themselves that their local laws and tjeir jurisdiction are spmehow universal.
As far as the case iz concerned it is possible that Siemens had significant amounts of evaluation copies that they were seeking to licence. There is also the interesting questipn of how, or even whether, you licence software on an off line backup machine. I've noticed before that US and European companies sometimes have different opinions on that.
Oh yes and Broadcom are a bunch of crooks so I hope they lose.
Who writes (and signs) these contracts ?
Surely the jurisdiction for disputes is agreed on *before* you sign the dotted line.
I'm beginning to think some lawyers are shysters.