U.S. Government Account Military Piracy Lawsuit for 50 Million Dollars
The US government has accepted to settle a piracy lawsuit with the software maker Apptricity. It was decided that the military used pirated logistics software made by Apptricity for years and regardless of initially seeking nearly a quarter billion dollars in unpaid licenses, the company ultimately agreed for 50 million dollars.
Apptricity agreed to permit enterprise software to the US Army, back in 2004. The agreement licensed the Army to use the software on 150 standalone devices and five servers. However, the software has been illegally emulated, since 2004, and used in Army missions across the globe.
It wasn’t revealed that the military had copied the software on other devices up until 2009 when the Program Director of US Army noted that a couple thousand devices were running Apptricity software.
Concretely, Apptricity claims that the government has used their software during the war in the Middle East and to help coordinate emergency management enterprises like the relief efforts in Haiti after the earthquake that devastated the region in January 2010. In total, the software was found on more than 9000 standalone devices and 93 servers – much more than were contracted for in 2004.
According to licensing fees of 5000 dollars per device and 1.35 million dollars per server, Apptricity assumed they were owed 224 million dollars in licensing fees, but the parties agreed on 50 million dollars, after negotiations on both sides.
The issue isn’t expected to blacken the relationship between the two, as both anticipate continuing their business relationship. According to Apptricity senior adviser Tim McHale who is also a retired major-general, the relationship will in fact grow considerably.