VMware Wins Partial Victory Against Siemens in Legal Battle Over Contract Language

Magistrate judge rules that Siemens' attempt to move case to Germany was based on too narrow contract language, but dismisses German parent company from suit.

Published on Feb. 12, 2026

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Broadcom's VMware has secured an initial advantage in its legal dispute with industrial giant Siemens, after a magistrate judge sided with the software company's efforts to keep the case in a U.S. court. Siemens had sought to move the case to Germany, arguing that the Master Software License Agreement (MSLA) it signed with VMware in 2012 stipulated legal disputes should be resolved in Munich courts. However, the judge found that the language in Siemens' MSLA was too narrow, favoring VMware's position that the dispute was over copyright infringement, not just contractual issues.

Why it matters

This case highlights the importance of precise contract language, as well as the strategic considerations around forum selection in high-stakes legal battles between major technology companies. VMware likely wanted to keep the case in the U.S. to potentially seek greater damages under copyright law, rather than be limited to breach of contract claims in German courts. The outcome also reflects VMware's ongoing struggles with customers over its licensing changes under new parent company Broadcom.

The details

VMware filed suit against Siemens' American arm last March, alleging that Siemens was using more VMware products than it had licenses for. Siemens sought to have the case moved to Germany, but the magistrate judge found that the language in Siemens' original MSLA, which referenced 'any dispute arising out of this agreement,' was too narrow compared to broader phrases like 'any dispute regarding this agreement.' This semantic distinction ultimately favored VMware's position that the dispute was over copyright, not just contractual issues. However, the judge did recommend dismissing Siemens AG, the German parent company, from the case entirely.

  • VMware filed the lawsuit against Siemens' American arm in March 2026.
  • The magistrate judge issued her report and recommendation on February 12, 2026.

The players

VMware

A software company owned by Broadcom that provides virtualization and cloud computing technologies.

Siemens

A German industrial conglomerate that was a customer of VMware's software products.

Siemens AG

The German parent company of Siemens, which was dismissed from the lawsuit by the magistrate judge.

Judge Laura Hatcher

The magistrate judge who issued the report and recommendation in the case.

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What they’re saying

“The forum selection clause in Siemens original MSLA with VMware used too narrow language.”

— Judge Laura Hatcher, Magistrate Judge (sdxcentral.com)

What’s next

The involved parties have around 14 days to file written objections to argue the magistrate judge's initial findings before a district judge makes a final ruling.

The takeaway

This case highlights the importance of precise contract language in high-stakes legal battles between technology companies, as well as the strategic considerations around forum selection that can impact the potential outcomes and damages. The outcome also reflects the ongoing tensions between VMware and its customers over the company's licensing changes under new owner Broadcom.