Software Firm Apptricity Receives $50 Million in U.S. Army Piracy Lawsuit
November 29, 2013 11:42 AM
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Apptricity also managed to keep the Army as a client after the lawsuit
A small, Irving, Texas-based software company recently had a dispute with a client and won the court case. This sort of thing happens all the time, right? Of course, except its client was the U.S. Army.
filed a lawsuit against the U.S. Army -- its largest client -- back in 2012 for illegally installing its software on unlicensed workstations around the globe. It looks like Apptricity came out the winner, as it was just reported by
that the company received $50 million from
Apptricity took the Army as a client starting in 2004, back when the small firm had about 80 employees. Computer Sciences Corp. (CSC) brought the two together, and even after the Army terminated its contract with CSC in 2007, the Army stuck with Apptricity.
The Army used Apptricity's software to keep an eye on its scattered people and equipment. It paid for five servers and several thousand workstations, plus the annual maintenance.
But by 2008, Apptricity noticed that the Army was using the software at way more bases than it paid for. To be exact, it had installed the software on at least 98 servers and nearly 11,000 workstations.
Apptricity filed the lawsuit in February 2012 and won, although it was originally seeking $224.5 million in damages.
Even better, the small firm was able to keep its largest client despite the settlement.
“It’s like a marriage. Sometimes you really don’t want to be around each other, but it doesn’t mean you are going to break it off," said Tim Garcia, president and co-founder of Apptricity.
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11/29/2013 6:53:52 PM
It's not like this software was illegally obtained, just a bit late on its true-up by a few years :p
As Moto said, this happens all the time in large businesses. Hence the yearly (or even bi-yearly) audits of every node on the network. In most cases, the unlicensed products get paid for before a lawsuit can entail. Most businesses would rather work with the customer than just slap litigation down.
11/30/2013 2:04:51 PM
The company notified the Army of unauthorized use of its software in 2008. It was not caught by any Army audits, this is not the case of someone finding an install disc in a closet or some minor IT guy screwing up. The Army was using software without license for years and was well aware of it. The company should never have had to file a lawsuit to be compensated.
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