Software company is suing my friend

[ArmenK]

My friend runs a small web development and hosting company. I think he has somewhere around 10-20 sites up. He purchased shopping cart software from digishop and set it up on one of his sites.

Another one of his clients wanted to see how it would look if he had the same software on his site. My friend set it up for him and (here is where he made the mistake) used the same license he had for the original purchase. A week later, he got a notice from the company that he had broken the license agreement.

This is in response to your unauthorized use of our software. It is against the license agreement to install the software for any reason without purchasing a license. By doing so this immediately violated our license agreement. This may have been a misunderstanding on your part; please contact Holly Deal immediately for payment of the license at 1-800-747-4270.

My friend called emailed them and told them the situation and that they had decided not to purchase the software for this site. The shopping cart on this new site was set up but never actually used. The response:

This does not remove your obligation to pay for the software license that you have used. You have been using our software illegally regardless of your plans not use it in the future. We will be pursuing this matter further as this is a violation not only of our license agreement but also state and federal intellectual property laws. Your client can also be held liable pending your further refusal to settle this matter.If you wish to settle this matter before we hand it over to our attorneys, you will need to make arrangements for payment of $800 for the violation by 10/13/2004. Full payment must be remitted to Sum Effect Software, Inc. by 10/18/2004. This is your last opportunity to settle this matter amicably.

I realize that he broke the license agreement. If he had bought a new license, it would have cost him $300. The question that remains is what should he do and how far can/will the company go to collect money from him.

He is in CA, the company is in TN.

Summary:

-My friend broke a software license agreement
-Company threatens to sue if he doesnt pay $800

 

[spunkz]

see if they'll settle for 300

 

[yukichigai]

The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

 

[DaveSimmons]

Since he's already admitted to violating the license (and they obviously have logs of the license running on 2 sites), they can go after him for a lot more than $800. Those BSA scare ads say it's either a $50,000 or $500,000 fine, I forget which.

Getting his own lawyer would also cost a lot more than $800, and at that point the lawyer would probably just tell him to settle (guessing -- I Am Not A Lawyer!).

He should pay the money and learn from his stupid mistake not to violate software licenses, especially in his professional work.

 

[DaveSimmons]

Originally posted by: yukichigai
What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

How so? He violated his license terms and they caught him. Them offering a settlement for the normal license cost to avoid litigation is in no way "extortion."

Chances are good the application "phones home" periodically, their logging software notified them, and they collected sufficient evidence in the week before sending the email.

 

[SuperTool]

Originally posted by: DaveSimmons

Originally posted by: yukichigai
The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

How so? He violated his license terms and they caught him. Them offering a settlement for the normal license cost to avoid litigation is in no way "extortion."

The normal license cost is $300. The $500 part is extortion.

 

[yukichigai]

Originally posted by: DaveSimmons

Originally posted by: yukichigai
What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

How so? He violated his license terms and they caught him. Them offering a settlement for the normal license cost to avoid litigation is in no way "extortion."

The normal license cost is $300, not $800. It's the extra $500 that makes it extortion.

 

[ArmenK]

Originally posted by: yukichigai
The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

The license agreement says

confirm that the Software will electronically register itself with us, and you agree that we may monitor your use of the Software to ensure that you are complying with the terms of this license, which monitoring may include accessing the web server on which the Software and content generated by it is deployed.

 

[yukichigai]

Originally posted by: ArmenK

Originally posted by: yukichigai
The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

The license agreement says

confirm that the Software will electronically register itself with us, and you agree that we may monitor your use of the Software to ensure that you are complying with the terms of this license, which monitoring may include accessing the web server on which the Software and content generated by it is deployed.

Your friend is a dumbass.

This was a Bill Cosby moment: ugly truth, but the truth nonetheless.

 

[Bateluer]

Kinda BS if you ask me, especially the 500 dollar 'fee'. I'd probably settle with them, but let them I'll be changing to one of their competitors. I don't like doing business with groups that don't have a certain degree of flexibility and common sense.

 

[DaveSimmons]

Originally posted by: yukichigai

Originally posted by: DaveSimmons

Originally posted by: yukichigai
What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

How so? He violated his license terms and they caught him. Them offering a settlement for the normal license cost to avoid litigation is in no way "extortion."

The normal license cost is $300, not $800. It's the extra $500 that makes it extortion.

Good point, but for it to be extortion I think they would have to be a third party offering to suppress evidence rather than the injured party offering a settlement on whatever terms they choose.

But I'm not a lawyer, so who knows?

 

[ArmenK]

Originally posted by: yukichigai

Originally posted by: ArmenK

Originally posted by: yukichigai
The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

The license agreement says

confirm that the Software will electronically register itself with us, and you agree that we may monitor your use of the Software to ensure that you are complying with the terms of this license, which monitoring may include accessing the web server on which the Software and content generated by it is deployed.

Your friend is a dumbass.

This was a Bill Cosby moment: ugly truth, but the truth nonetheless.

Given hes not the smartest guy, he is a friend nonetheless and a really innocent, good natured person.

 

[ArmenK]

From the license agreement:
"You agree to indemnify us for reasonable attorney fees in enforcing our rights pursuant to this license."

I guess that's the $500.

 

[Audiotherapy]

bit off topic but here are some open source e commerence softwares:

MyMarket
osc2nuke
osCommerce
Zen Cart

you can chk em out on www.opensourcecms.com

 

[zimu]

probably smart ot pay the 800, given the viewpoints above. alternatively you could reply to the company, say its extortion and say you'll pay $300, otherwise you'll sue for extortion.

gotta love the law.

 

[Rufio]

damn that sucks

 

[CPA]

Originally posted by: yukichigai

Originally posted by: DaveSimmons

Originally posted by: yukichigai
What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

How so? He violated his license terms and they caught him. Them offering a settlement for the normal license cost to avoid litigation is in no way "extortion."

The normal license cost is $300, not $800. It's the extra $500 that makes it extortion.

uh, no it doesn't. It is their legal and administrative costs for this matter.

Go to court and I'll guarantee it'll be a hell of a lot more than $800.

 

[mesonw]

Is there no member on here who works in or has studied Corporate Law? Where are y'all?
Come help advise the poor guy....

 

[spidey07]

Originally posted by: yukichigai
The question is: how did they know? Maybe they're talking out of their asses.

What they're doing is technically extortion. If your friend asks them to settle for $300 and they balk, you may want to consider an extortion suit. "Pay $800 or we sue" is sure as hell extortion.

That sure isnt extortion its "pay for what you owe us or we'll make you pay" What happens when you don't pay a bill? Sure enough, they pursue legal routes.

That's how this country works, you pay for what you use. He stole something and the store expects him to pay for it.

 

[Passions]

What a totally shady and unprofessional company.

You can tell how small and low-budget they are with their "contact Holly Deal immediately," lolzzzz.

What kind of company uses personal names for corresspondance?

And the $800 is pure BS, maybe $300 for a license, but $800 is just cheap and shady. You will not win over customers through tactics like this.


SHADY!!!!!

 

[OutHouse]

Originally posted by: Passions
What a totally shady and unprofessional company.

You can tell how small and low-budget they are with their "contact Holly Deal immediately," lolzzzz.

What kind of company uses personal names for corresspondance?

And the $800 is pure BS, maybe $300 for a license, but $800 is just cheap and shady. You will not win over customers through tactics like this.


SHADY!!!!!

no its not.

 

[Biggerhammer]

He may be able to explain that it was a mistake, point out via logs that it was never used and explain that he would have purchsed the software before any actual use. I suspect that he's going to wind up paying the $800, though. I would certainly suggest to him that he publicize his story well- with as much competition as there is out there, Sum Total will take more than $800 worth of damage if people kniow what kind of hardassed knuckleheads run the company.

Cliffs for the really lazy: He's technically guilty and probably gets to wave bye-bye to $800.

 

[Codewiz]

What company so I know to avoid them at all costs?

 

[ragazzo]

ouch. sucks to be sued :/ good luck

 

[acemcmac]

I'd inform them that you have retained a lawyer and to send all further correspondance to him via certified mail

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