Siemens isn't the only company tangled in a lawsuit over VMware licensing. Check out the key events in the Broadcom-VMware-Siemens saga, plus read about similar lawsuits involving AT&T, United Healthcare and a Dutch government agency.
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Last fall, Siemens threatened to sue VMware if it didn’t provide ongoing support for its software and handed over a list of the software it was using for which it wanted support. However, that list included software that Siemens didn’t have any licenses for, perpetual or otherwise. VMware sued, Siemens countersued, and now the companies are battling over jurisdiction.
[ Related: More VMware-Broadcom news and insights ]
What makes the Siemens lawsuit so worrisome for other enterprises is that VMware – now owned by Broadcom – is the one that sued Siemens for using unlicensed VMware software. (See our related feature story, Enterprise licensing lessons from Broadcom-VMware-Siemens spat) How did things get to this point? Here’s a look at some of the key events in the Broadcom-VMware-Siemens licensing saga.
Early moves
- 2012: According to the complaint VMware filed in March of this year, VMware and Siemens signed a master software license and service agreement in 2012.
- Sept. 2021: An amended license agreement is signed, for a duration of three years, which includes a provision to extend support services for one year.
- Nov. 2023: Broadcom buys VMware.
2024 events
- Sept. 9: Siemens sends VMware a letter asking to extend support services for one year for a certain list of products.
- Sept. 10: VMware asks Siemens to provide the list of licenses they had for those products.
- Sept. 12: Siemens refuses to provide the list.
- Sept. 13: VMware offers to extend support by 30 days, repeats request for information, suggests an independent third-party auditor.
- Sept. 17: Siemens threatens legal action if VMware doesn’t extend the support agreement.
- Sept. 20: VMware sends Siemens a table of discrepancies between the list of products Siemens wanted support for and the licenses VMware had in their records.
- Sept. 25: Siemens sends VMware a formal purchase order for the renewal of support services.
- Sept. 28: Siemens threatens VMware with legal action.
- Sept. 30: The original three-year amended license agreement expires.
- Oct. 4: Siemens claims it had “effectively extended the term of the ELA until 29 September 2025” through its renewal notice.
- Oct. 8: VMware agrees to provide support services based on the Sept. 9 list but reserves “the right to seek compensation for the unauthorized overage of its software and support services.”
- Oct. 29: Siemens retracts its Sept. 9 list and offers a new, smaller, list that is closer to VMware’s records of licenses. It includes 23,000 deployments in the U.S. alone, by 18 different Siemens entities.
2025 developments
- March 21: VMware files suit against Siemens and its US subsidiaries in the District Court of Delaware. After a little back and force, Siemens gets until June 10 to respond.
- June 10: Siemens responds, saying that the case should be dismissed and moved to Munich, Germany courts based on a “forum selection clause” in their original agreement.
- June 24: VMware responds, saying that Siemens distributed infringing VMware products to its US subsidiaries in violation of US copyright law by accessing VMware’s US server.
- July 1: Nah uh, says Siemens. First, any actions taken by the parent company occurred in Germany. Also, downloading allegedly copyrighted software does not constitute copyright infringement under U.S. law. Also, Siemens disputes the allegation that there was any infringement going on and says that VMware is trying to repackage a license dispute as a copyright infringement dispute.
Other VMware licensing and legal disputes
There have been other VMware-related legal and licensing problems to emerge since the Broadcom acquisition. Here are a few to know about:
AT&T vs. Broadcom regarding VMware licensing
- Aug. 20, 2024: AT&T files suit in New York State, claiming that Broadcom is retroactively changing existing VMware licenses and demanding that “AT&T purchase hundreds of millions of dollars’ worth of bundled subscription software and services, which AT&T does not want.” AT&T says that its current support agreement expires on Sept. 8, 2024, but that there’s an option to renew for two years — an option that Broadcom is refusing to honor.
- Nov. 21, 2024: Broadcom and AT&T send a joint letter to the court saying that they’ve reached a settlement. The terms are not disclosed.
United Healthcare Services vs. Broadcom regarding CA Software, VMware
- Sept. 5, 2024: Broadcom sends United Healthcare Services a proposed amendment for its license agreement for CA Software. United Healthcare rejects it.
- Nov. 2024: Broadcom offers to replace the entire agreement. United Healthcare rejects it, as well.
- Feb. 2025: United Healthcare rejects Broadcom’s demand, Broadcom says that the CA Software renewal will be bundled with its VMware software renewal.
- March 30, 2025: CA Software license is scheduled to expire and renewed until April 18, 2025, to allow for negotiations.
- April 2, 2025: United Healthcare files suit against Broadcom, claiming that Broadcom is trying to coerce it into paying “hundreds of millions more” for access to CA software and related services.
Dutch government ministry vs. Broadcom regarding VMware licensing
RWS, the executive arm of the Ministry of Infrastructure and Water Management of the Netherlands, has been using VMware products for 15 years, spending “millions” on perpetual licenses. The most recent license dates from November 2023. (Read more: Dutch court forces Broadcom to support VMware migration after 85% price hike backlash)
- June 13, 2024: Broadcom declines to extend support agreement, offers new deal that would cost €18.65 million (US $22 million) for three years. RWS says it will take the risk of continuing to use its perpetual VMware license without ongoing support while it explores further options.
- July 12, 2024: RWS fails to get support from resellers, asks Broadcom to allow resellers to extend support.
- July 18, 2024: Broadcom extends support until September 30, but only on the condition that RWS sign a new agreement by September 13.
- July 22, 2024: RWS objects to conditions, and Broadcom extends support until November 1.
- Aug. 1, 2024: RWS receives quotes from resellers, not for new support agreements, but for subscriptions. Compared to what the agency had been paying before, this would have amounted to a price increase of 85%.
- Oct. 31, 2024: Broadcom offers a limited extension of support through July 23, 2025. RWS requests a three-year extension. Broadcom repeats its subscription offer, at an even higher price.
- March 5, 2025: RWS tells Broadcom it will phase out VMware products over next two to three years, and asks for continuing support at €2.2 million (US $2.6 million) per year — a discount, since Broadcom will no longer be doing any product development.
- March 10, 2025: Broadcom rejects the proposal.
- April 11, 2025: RWS informs Broadcom that it will begin legal proceedings.
- May 21, 2025: Preliminary hearing was held at the Hague District Court.
- June 6, 2025: Oral hearing takes place.
- June 27, 2025: Judge rules in favor of RWS. Broadcom had to pay €2,143 (US $2,526) in court costs, and, more importantly, provide maintenance updates and upgrades, bug and security fixes and technical assistance for VMware products falling under RWS’ perpetual licenses for two years, at a cost of €1.8 million (US $2.1 million) per year. If Broadcom fails to do this, it will be subject to a penalty of €250,000 (US $295,000) per day, up to a maximum of €25 million (US $29.5 million).
