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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11/30/2013 2:02:38 PM
IP it is indeed, but piracy is not simply a civil matter. There are criminal penalties that may be imposed. You can go to federal prison for 5 years for software copyright infringement.
Frankly, to me this is much more than a compliance issue. The software was installed on almost 20 times as many servers as the Army had license for. They were contacted in 2008 regarding unauthorized use. The Army knowingly used unlicensed software for years, someone should get fired.
12/1/2013 6:50:42 AM
You think someone didn't get fired? Something like this definitely ended and set back quite a few careers. Hopefully those responsible weren't able to distance themselves or weasel their way out before the fallout.
12/1/2013 3:48:25 PM
I have no knowledge either way, however I have worked with the government before. It would not surprise me if no one got fired. I read the source story and several others, not a single one mentions any sort of discipline against anyone.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
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