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Wismer Wins First Round Vs. Eds

Bert Caldwell Staff Writer

Wismer Martin Corp., with survival on the line, Tuesday won a reprieve in its battle with giant Electronic Data Systems Corp.

U.S. District Court Judge Fred Van Sickle awarded the Spokane company a preliminary injunction that prevents EDS from using its software.

Dallas-based EDS was also barred from buying three networks that provide information services to hospitals and other health care providers in Washington and Alaska.

The injunction will remain in effect until he can hear Wismer Martin’s claim for damages in excess $3 million, Van Sickle said.

Wismer Martin Chief Executive Officer Ron Holden said he was elated with the decision, despite a requirement that his hard-pressed company post a $100,000 bond.

“I’ve got $100,000,” he said, grinning.

Spokeswoman JeriAnn Crawford said EDS was disappointed, but would have no other comment while the litigation is pending.

Wismer Martin filed suit last month, alleging EDS had violated confidentiality agreements when it offered to purchase an information network owned by Blue Cross of Washington and Alaska. The network is based on Wismer software.

The confidentiality agreements were negotiated last year, when EDS was considering a purchase or alliance with Wismer Martin.

But in March, a key Wismer Martin executive defected to EDS, which Holden said offered $10 million for two Blue Cross of Washington and Alaska network and one others owned by Medical Service Corp. of Eastern Washington.

EDS wants to combine those networks, then expand them into Oregon, Idaho and Montana, he said.

More importantly, Holden said, the company wants to use Wismer Martin’s code to boost its effort to evolve from a backshop data processor - albeit one of the world’ largest - into a networking consultant.

“This is the future of our business,” he said before the hearing. “If these guys get it, it’s not pretty.

“If we lose, we’re in trouble.”

Van Sickle agreed, saying that failure to grant a preliminary injunction “may well cause plaintiff to cease to be a viable entity.”

, DataTimes