Wynn Resorts Sues IBM Over Absurd Demands

The Wynn Las Vegas and Encore casino resorts have begun a legal battle against IBM over what executives say are “unreasonable demands” for money.

IBM has attempted to collect over $9 million in licensing fees from the casinos for months, claiming that a recent review of the resorts software used to track work orders and maintenance shows that an additional 2,000 licenses are needed.

IBM has charged $4,600 for each additional license they claim the resorts need to cover all employees that have used the Maximo software in the past and will in the future.

However, Wynn Resorts Limited, the owner of the casinos, said that the demands for payment “are absurd, unjustified and unconscionable” and has filed a federal suit demanding judgment and damages for breach of faith, detrimental reliance and deceptive trade.

In the court filings Wynn denied that it owes any of the $9.7 million that IBM is demanding since in 2004 the company purchased software licenses for 15 primary users, 20 secondary users, and 500 casual work requester users and should not now be required to pay license fees for every worker that every used the software merely to check on the status of an order.

“IBM’s unwavering demands have created an urgent situation of legal and financial uncertainty for Wynn that calls out for judicial intervention..”