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Nuance Commc'ns Inc. v. Int'l Bus. Machs. Corp.

Agreement Over DeepQA Software's License Ambiguous; Breach Claims Over Updates Stand

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AMENDED OPINION & ORDER1  Nuance Communications, Inc. (“Nuance”) brings this Action against International Business Machines Corporation (“IBM”) alleging breach of contract and breach of the implied covenant of good faith and fair dealing. Before the Court is Nuance’s Motion for Summary Judgment, (Not. of Mot. (Dkt. No. 116)), and IBM’s Motion for Summary Judgment, (Not. of Mot. (Dkt. No. 120)). For the reasons discussed below, Nuance’s Motion is denied, and IBM’s Motion is granted in part and denied in part. I. BackgroundA. Factual BackgroundThe following facts are drawn from the Parties’ statements submitted pursuant to Local Civil Rule 56.1, both as to Nuance’s Motion, (see Pl.’s Local Rule 56.1 Statement (“Nuance 56.1″) (Dkt. No. 118); Def.’s Resp. to Pl.’s Rule 56.1 Statement (“IBM Resp. 56.1″) (Dkt. No. 135)), and as to IBM’s Motion, (see Def.’s Local Rule 56.1 Statement (“IBM 56.1″) (Dkt. No. 123); Pl.’s Resp. to Def.’s Rule 56.1 Statement (“Nuance Resp. 56.1″) (Dkt. No. 132)), as well as from the admissible evidence submitted by the Parties.2 The facts are not in dispute except to the extent indicated.31. DeepQA and Contract FormationThe IBM Research Group (“IBMRG”) is a subdivision within IBM that develops technologies it then licenses; it does not itself develop commercial products. (IBM 56.1

1-2.) By September 2010, IBMRG had developed DeepQA, a natural-language question-answering technology. (IBM 56.1

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