IBM unit settles lawsuit with Cambex on use of leased mainframe computers

IBM's credit subsidiary has settled a lawsuit it recently filed with Cambex Corp, in which it accused the company of misusing a leased mainframe computer. The suit is one of three filed by the giant computer manufacturer and is seen as an attempt by the company to crack down on the activity of its competitors, who often refit leased IBM machines. Camdex will pay an estimated $5.9 million under the settlement. The other two suits against Comdisco Inc and EMC Corp remain outstanding. The suit maintained that Camdex replaced memory microprocessors in the leased machines with its own products, illegally selling or leasing the IBM chips as upgrades to other machines. Before returning the mainframes to IBM, Camdex replaced the missing chips with different, but identical, IBM products.