[A2k] US govt caught using pirated software for military, settles for $50mn
Riaz K Tayob
riaz.tayob at gmail.com
Thu Nov 28 14:22:39 PST 2013
US govt caught using pirated software for military, settles for $50mn
Published time: November 28, 2013 02:28
Edited time: November 28, 2013 05:03
Get short URL <http://rt.com/usa/us-army-pirated-software-413/>
Reuters / Rick Wilking
Reuters / Rick Wilking
Army <http://rt.com/tags/army/>, Copyright
<http://rt.com/tags/copyright/>, Crime <http://rt.com/tags/crime/>,
Military <http://rt.com/tags/military/>, USA <http://rt.com/tags/usa/>
The Obama administration has agreed to pay Apptricity US$50 million for
pirating the company's logistics software the US Army used beyond
While the Obama administration's has launched efforts against
intellectual property theft - including the Joint Strategic Plan run by
Vice President Joe Biden that aims to curb copyright infringement - the
US Army was concurrently using pirated Apptricity enterprise software
that manages troop and supply movements. The company sued the
government, accusing the US military of willful copyright infringement.
The Administration settled with the company, it was recently announced,
agreeing to pay US$50 million, though Apptricity originally called for
over four times that amount to cover unpaid licenses, TorrentFreak
In 2004, Apptricity agreed with the US Army to license the
troop-movement software, allowing the government to use it on five
servers and 150 standalone devices. Despite the deal, the Army has used
the software worldwide.
/"The Army has used Apptricity's integrated transportation logistics and
asset management software across the Middle East and other theaters of
operation. The Army has also used the software to coordinate emergency
management initiatives, including efforts following the January 2010
earthquake in Haiti,"/ the company said.
The improper installation of thousands of unlicensed copies of software
was discovered incidentally, when the US Army Program Director said
during Strategic Capabilities Planning 2009 that thousands of devices
had Apptricity software.
Ultimately, 93 servers and over 9,000 standalone devices of the Army had
the unlicensed software. Apptricity figured it was owed US$224 million
based on usual fees of US$1.35 million per server and US$5,000 per device.
Apptricity filed a lawsuit at the US Court of Federal Claims, alleging
the government of willful copyright infringement, all while concealing
/"The Government knew or should have known that it was required to
obtain a license for copying Apptricity software onto each of the
servers and devices,"/ the company told the court, asking for at least
US$224,543,420.80 in damages, equal to what it lost in licensing fees.
The government went on to admit the illegal use and entered into lengthy
negotiations with Apptricity to settle.
/"After Alternative Dispute Resolution proceedings, the parties agreed
to settle for $50 million. The figure represents a fraction of the
software's negotiated contract value that provides a material quantity
of server and device licenses for ongoing and future Department of
Defense usage,"/ Apptricity announced.
Apptricity expects to continue doing business with the US military
/"Now that this process is behind us, it is envisioned the Apptricity
and Army relationship will continue to grow exponentially,"/ says Tim
McHale, an Apptricity senior adviser and retired major-general.
The Administration has yet to comment on the settlement. But Biden's
words upon announcing the federal anti-copyright-infringement plan ring
"Piracy is theft, clean and simple."
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