LAS VEGAS (CN) – Wynn Las Vegas claims IBM overcharged it by $9 million for software to track work orders and maintenance. Wynn claims set up its two hotels on the Strip with 500 users for IBM’s Maximo software, and now IBM claims that every hotel worker “who merely used the software to report and follow up on guest maintenance requests” must have his or her own license, at $4,600 a pop.
IBM demands that both Wynn hotels on the Strip buy nearly 2,000 additional licenses for up to $4,600 each, according to the federal complaint.
Wynn claims that it “agreed in the fall of 2004 to purchase the software for the use of 15 primary users, 20 secondary users, and 500 casual work requester users.”
But now, “According to IBM’s apparently revised understanding of Wynn’s license, every Wynn employee who had been using MAXIMO – including every housekeeper who merely used the software to report and follow up on guest maintenance requests – was required to have his or her own multi-thousand-dollar software license,” the complaint states.
“IBM’s demands are absurd, unjustified and unconscionable; yet IBM continues to press them. For several months now, IBM has consistently demanded that Wynn pay $9.7 million for past and anticipated future use of MAXIMO software.
“IBM’s unwavering demands have created an urgent situation of legal and financial uncertainty for Wynn that calls out for judicial intervention.”
Wynn demands declaratory judgment and damages for breach of faith, detrimental reliance and deceptive trade. It says it owes nothing of the $9.7 million IBM demands.
Its lead counsel is James Pisanelli with Pisanelli Bice.