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UPDATE 2-Accenture sues Guidewire again over patent

Tue Nov 10, 2009 10:50pm EST

Stocks

   

* Asks court to stop sale of Guidewire insurance software

Stocks  |  IPOs

* Latest suit in ongoing legal battle

* Guideware seen as possible IPO (Updates with Guidewire comment, background in paragraphs 5-8, 10)

By Tom Hals

WILMINGTON, Del., Nov 10 (Reuters) - Technology outsourcing and consulting firm Accenture LLP asked a federal court on Tuesday to stop Guidewire Software Inc from selling its insurance software, which Accenture said infringes its patent.

Guidewire has been labeled one of the Silicon Valley Six, an elite group of private technology companies including LinkedIn that are likely initial public offering candidates.

Accenture said in a complaint filed in federal district court in Wilmington, Delaware, that Guidewire Insurance Suite and Guidewire ClaimCenter, two core Guidewire products, "have no substantial non-infringing use."

Accenture asked the court to order Guidewire to stop making and selling the software in the United States and award Accenture damages.

The suit is the latest in a series of legal spats between the two companies.

Accenture filed a 2007 complaint against Guidewire for misappropriating trade secrets. Guidewire countersued and in 2008 a judge dismissed both suits.

Guidewire said Accenture's latest lawsuit stems from a patent that never should have been issued, while noting that Guidewire also did not infringe it. A Guidewire executive said the company has asked the U.S Patent Office to review it.

"Accenture is resorting to litigation to compete," said Brian Desmond, vice president of marketing for Guidewire. "They have been left behind by the marketplace."

Guidewire, of San Mateo, California, was founded in 2002 and its 70 customers include Geico, AAA and Tokio Marine Nichido Fire. Desmond said 27 have been added since the 2007 suit was filed.

"We're very confident we will prevail. If you look at the number of customers that have invested in Guideware, they feel the same way," said Desmond.

The company's chief executive, John Raguin, has said Guidewire grew more than 40 percent in the latest fiscal year.

Accenture said it will pursue all legal remedies to protect its patents.

"The suit alleges that Guidewire infringes Accenture's U.S. patent-protected Accenture Claims Component Solution technology. This is the third patent we contend that Guidewire is infringing," said Jim McAvoy, a spokesman for Accenture.

Accenture LLP is the U.S. business of Accenture Plc (ACN.N), which is incorporated in Ireland. Shares of Accenture ended down 1.4 percent at $39.42 on the New York Stock Exchange.

The case is Accenture Global Services GmbH a Switzerland Corporation and Accenture LLP v Guidewire Software Inc, U.S. District Court, District of Delaware, No. 09-cv-00848. (Additional reporting by David Lawsky; Editing by Lincoln Feast)



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