Additional feedback characters remaining. Find a Partner. Get Started Here. Action Pack. Cloud Migration. Artificial Intelligence. Business Applications. Cloud Applications. Internet of Things. Inclusive Economy. Developer Network. To service the systems, Southeastern technicians used Triad's OS, utilities and diagnostic software.
When the computer was turned on by Southeastern, copies of the OS software were made in the computer's random access memory in violation of the Triad's copyright ownership.
Peak Computer, Inc. Southeastern's defense that Triad was misusing its copyright was also unavailable since "Triad did not attempt to prohibit Southeastern or any other ISO from developing its own service software to compete with Triad. A software licensor included a provision in its license agreement prohibiting a licensee of the software from independently creating competitive software.
The court concluded that this provision constituted misuse of the copyright in the software and precluded an infringement action against a licensee. The court noted that the licensor misused its copyright by attempting to suppress any attempt by the licensee to independently implement the idea expressed in the software.
The relevant provision in the license agreement was as follows: Licensee agrees during the term of this Agreement [99 years] that it will not permit or suffer its directors, officers and employees, directly or indirectly, to write, develop, produce or sell computer assisted die making software.
Licensee agrees during the term of this Agreement and for a period of one 1 year after the termination of this Agreement that it will not write, develop, produce or sell, or assist others in the writing, developing, producing or selling computer assisted die making software, directly or indirectly, without Lasercomb's prior written consent.
Any such activity undertaken without Lasercomb's written consent shall nullify any warranties or agreements of Lasercomb set forth herein. Qad, Inc. ALN Associates, Inc. Qad developed and marketed business software for Hewlett-Packard minicomputers. ALN later developed a similar software product and was sued by Qad. Citing Lasercomb, the court held that the plaintiff had misused its copyright to obtain a preliminary injunction against the defendant's use of software in which the plaintiff itself had no rights.
The plaintiff had failed to disclose the copyrightable authorship of third parties in the software program in its copyright registration application filed with the U. Copyright Office. Damages JetPac Group, Ltd. Bostek, Inc. The defendant, a computer supplier, that made a shipment of defective computers was held liable for direct losses to the plaintiff, consequential damages for lost prospective profits, and incidental damages incurred by the plaintiff.
Incidental expenses incurred by the plaintiff in an effort to salvage the contract, such as cost of travel and increased shipping, were also charged to the defendant. Softel, Inc. Dragon Medical and Scientific Communications Ltd. Dragon intentionally misappropriated software for use in its distributed interactive computer programs. Although the general rule under copyright law is that liability is several and not joint, the court held that the director of Dragon was jointly liable to the software owner because the infringement was intentional.
Management Computer Systems, Inc. An accounting firm, holding back up copies of software licensed from Management Computers Services, Inc. MCS was entitled to damages for conversion based upon the value of the software and the value of its use, unjust enrichment based upon the benefit received by MCS and punitive damages ten times the amount of compensatory damages awarded.
Mark E. Heinemann et al. Two employees had signed an employment agreement with Electronic Data Systems Corp. The software was held to be a trade secret because of 1 existence of confidentiality agreements with employees and customers and 2 use of security measures in the office. The Court ruled that the employees did steal the trade secrets.
However, even though there was a misappropriation and unjust enrichment, the Court found that there were no damages. Finally, the Court found that the employees had breached their nonsolicitation covenant but because courts will not toll these type of provisions, the employees were only enjoined for three days from soliciting customers which was the duration remaining on the nonsolicitation covenants.
Hancock v. Essential Resources, Inc. A former employer sought a preliminary injunction enforcing a restrictive and confidentiality covenant of a former employee's employment agreement. The former employer attempted to preclude the former employee from using customer lists, customer data, mailing lists, and other proprietary and confidential information. The court concluded the customer list was not a trade secret, since during the former employee's tenure, all personnel had access to the customer list, no one was instructed to keep it confidential, and the company imposed no restrictions or guidelines on its personnel with regard to the circulation of customer lists and related information.
Panther Systems II, Ltd. Panther Computer Systems, Inc. A computer company sued its former employee seeking to enjoin the use of customer lists. One such list had been compiled as a result of individuals who had responded to views of the company's computers in a technology trade magazine. The court concluded that the "potential" customer list was entitled to the same degree of protection as an "actual" customer list. The court concluded that where information would not otherwise qualify as a trade secret, the unauthorized physical taking of internal company documents, including detailed customer information by an employee for use in his future business or employment is unfair competition.
On the other hand, where information obtained during employment relates to the identify of customers which is not secret, but is generally available from public sources to members of the trade, a former employee may disclose it without breaching a fiduciary duty of loyalty to his employer.
However, this is only if the employee has not engaged in an act such as stealing or memorizing his employer's customer lists. Tying Arrangements Systemcare, Inc. Wang Laboratories Corporation v. A Section 1 agreement was deemed present when the conspirators had a unity of purpose or a common design and understanding, or a meeting of the minds in an unlawful agreement.
Hitachi Data Systems Corp. Hitachi used its diagnostic tools, documentation and software "Tools" to provide maintenance services to end-users of Hitachi DASDs.
Hitachi did not independently sell or license the Tools. Bell Atlantic argued that Hitachi tied the maintenance services to the Tools. The court found that the Tools could constitute a separate product from the maintenance services. However, the Hitachi arrangement was not deemed a tying arrangement because Hitachi did not condition the "sale" of the Tools upon the purchase of maintenance services.
The Tools were not sold or licensed. Uniq Digital Technologies, Inc. In reaching its decision, the court compared the items to a car and its electrical system. Tricom, Inc. Electronic Data Systems Corp. The court rejected such argument stating that under patent and copyright law, EDS could not be compelled to license its software. The court rejected EDS' claim, stating that "a copyright owner may not enforce its copyright to violate the antitrust laws.
Eastman Kodak Co. Image Technical, Inc. Kodak sold copying machines, but refused to sell spare parts to anyone but its customers. A customer was prevented from providing the spare parts to third party service organizations, thereby requiring the customer to either have Kodak perform the services or take responsibility for its own service and repair.
The court found an illegal tying arrangement, despite the limited market share which Kodak had in the copier marketplace. Chuckleberry Publishing, Inc. The Court held that the posting of copyrighted materials on a website in Italy with active solicitation of customers to the site constitutes "distribution" in the United States which is enjoinable by a United States Court.
Central Point Software, Inc. A computer bulletin board operator who distributed and encouraged access to copyright works by its subscribers was permanently enjoined from allowing its subscribers to obtain copyrighted software posted on the bulletin board. The computer bulletin board operator was assessed statutory damages and ordered to deliver to the plaintiff all computer hardware and software used by the operator to make and distribute the copyrighted software, which included modems and central processing units.
Affiliate means a corporation which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with Customer. Bundled Product means the Software as separately identified and packaged or distributed to Distributors and End-Users along with data communications hardware manufactured or distributed by Customer, provided that a written list of such data communications hardware has been provided to Vendor in advance. Confidential Information means the information and materials marked or noticed by Vendor or Customer as confidential or proprietary, and any trade secrets of Vendor disclosed to Customer hereunder, but not including information that has been publicly known or available without breach of the Agreement or the Confidentiality Agreement.
Confidentiality Agreement is the written document at Exhibit A to be executed by Employees as provided herein. CPU means one 1 computer hardware central processing unit manufactured by ABC and obtained by Customer under this Agreement, designated by manufacturer model and a specific manufacturer serial number, as specified at Exhibit A, and for the internal, in-house use by Customer or Affiliate.
Derivative Work means a work which is based upon one or more preexisting works of Vendor, such as a translation, modification, revision or any other form in which such preexisting work is recast, transformed, or adapted and which, if prepared without authorization by Vendor would constitute a copyright infringement.
Documentation means the vendor's copyrighted user information relating to the operation and functionality of the Software, a copy of which is attached at Exhibit A.
Effective Date means the date on which an Agreement has been executed by an authorized representative of both parties. There are four types of bundles, as follows: Directive bundle: Performs multiple system actions. File bundle: Copies or installs system files.
Imaging bundle: Performs actions prior to an OS boot. Synonyms Software Distribution. Share this Term. Tech moves fast! Stay ahead of the curve with Techopedia! Empower your clients to engage with their data so they can answer tough business questions, uncover patterns and pursue breakthrough insights. Differentiate your client's organization with social business collaboration tools and work from almost any device. Elevate the customer experience at every stage of their journey, fueled by the power of IBM Watson and cognitive technologies.
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