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When Threatened By Lawyers for Licence Violations?

An anonymous reader asks: "I help run the a small branch-office (15 staff) in a foreign country. Today I received a letter from Borland's lawyer saying that we are illegally using their software. We spoke to the programmers and with their permission, we did a 100% check of all the staff's PC. We found NO evidence of violations. The Borland rep/lawyer mentioned that their HQ has received online registration of their commercial software in the companies name. They refused to name the software and the person involved. I told them what we did but they insist we pay. But pay for what? Borland's lawyer has given us 10 days to act and reply. I feel threaten and angry. Other than paying good money for a lawyer to defend what I view as Borland threatening us, what can I do to get Borland to pay for my wasted time and my lawyer's fee. Slashdot users, anyone has receive such threats from Borland or other companies ?" It seems that when dealing with commercial software, any vendor you deal with can level these kinds of accusations, which will result in Cease and Desist letters appearing in your CIO's inbox. Many times, these letters show up on the basis of very little and sometimes incorrect information. How can a company accused of infringement convince the software publisher that no such infraction has occurred (assuming the company is innocent) without spending a barrel full of dollars to prove it? Update: 12/26 Noon, EDT by C :A few spelling errors corrected. Sorry about that.

7 of 70 comments (clear)

  1. Ignore them until they sue. by mcgroarty · · Score: 2, Interesting
    Ignore them until they sue. They likely won't follow through if it's just a single copy they're talking about here.

    If they do follow through, it's going to be an expensive disappointment for them, and you've got grounds to counter-sue.

    Regardless, everyone's gotten a taste of Borland's business ethics from your article now. On top of that, if you do buy Borland's software, I'll also advise you all that Borland's C++ Builder comes node-locked now, and if you call them up, they're even more prohibitive about one user installing in multiple locations for his own use than Microsoft are with Visual Studio.NET.

    In this case, I'm making an earnest effort to convert the dialog code we were using away from Builder. Away from Builder and to Visual C++ so that we can prevent new licneses until Borland stops being ugly.

  2. Thanks for the info by Lord+Sauron · · Score: 3, Interesting

    I was about to choose between Borland's Delphi and MS's VB for my company. I think MS has more ethics than Borland. My decision is done.

  3. Fishing by airuck · · Score: 5, Interesting

    You have already responded correctly. You investigated the accusation, determined that it is incorrect, and communicated your position. They are fishing, which is exactly what licensing officers get paid to do. Ignore them.

    I run a biotech company and received a similar communication on Christmas Eve [Merry Christmas]:

    You may not be aware that [technique] is a patented process and that performing [technique]-based service assays for third parties (or internal quality control) requires a license under patents owned by [company A]. [company B] has the exclusive right to grant licenses for this purpose in certain fields
    1. A license issuance fee of US$10,000.00, which is fully creditable against the first year's royalties;
    2. A royalty of 15% of the net selling price for all [technique]-based services;
    3. The requirement that all such testing be carried out using Authorized [technique equipment] purchased from a licensed source;
    4. Quarterly reporting of all [technique]-based services performed, along with payment of royalties.

    Since we have over 115 licensees worldwide, the terms and conditions are not negotiable.[We are Borg...]

    [Finally, the accusation:]

    ...As your website mentions analysis of pathogen load, [your company] may require a license in at least one field, most like that of Quality Assurance/Quality Control Testing, although I would need more information regarding the types of samples being analyzed to determine this.

    As a matter of fact, my company does not offer pathogen load testing for QA/QC, or any other service requiring a license as per their defined criteria. I responded once, and unless we offer relevant services in the future, I will not respond to further letters. They can fish elsewhere.

    --
    First entomology, then virology, and finally bioinformatics systems. Bugs follow me wherever I go.
  4. Re:Before you do anything else... by airuck · · Score: 2, Interesting

    Double and triple check your systems, including servers, workstations, laptops and any remote installations (teleworkers, etc).

    Great advice, but after determining that you have not violated any software licenses, merely document the audit, communicate a denial, and stop there. There is no need to either harass your employees or bend over for Borland. Very simply, Borland is not going to give you a penny for an internal audit. They will claim, correctly, that legal compliance is your responsibility. You will be stuck with the bill. In addition, requiring employees to make verbal or written statements offers little legal protection and will send a clear message of mistrust to your own people. Does your company already have an employee handbook with a policy on pirated software? If so, then a simple emailed memo reminding the employees of this fact (or stating this policy) will add to your documentation without sacrificing employee moral. As an employer, I would not consider sacrificing trust for Borland.

    --
    First entomology, then virology, and finally bioinformatics systems. Bugs follow me wherever I go.
  5. Re:Before you do anything else... by swillden · · Score: 3, Interesting

    Don't forget...

    6. Begin investigating alternative development tools.

    Switching to tools from another company that promises to be less obnoxious or, even better, to Free software tools isn't going to help you out of your current situation, and it may turn out that there aren't any better alternatives, but it's a good idea to look into it. Switching is something that takes time and costs money, but managing software licenses and performing audits also takes time and costs money.

    Also, after Borland is satisfied that you aren't using infringing copies of their software (or after they decide it's not worth their effort to investigate), you should mention that the experience has motivated you to look elsewhere, and that you'll be moving away from Borland software in the future. This won't make them change their minds about investigating you, but maybe it will encourage them to be a bit more cautious about making poorly-substantiated accusations about paying customers. Microsoft would just thumb their collective nose at you, but Borland isn't so entrenched that they can afford to piss off customers needlessly.

    --
    Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
  6. Re:Before you do anything else... by PD · · Score: 2, Interesting

    And politely remind them that barratry is a serious offense that could cause their lawyers to lose their licenses.

  7. Re:Before you do anything else... by innocent_white_lamb · · Score: 2, Interesting

    Make it clear to Borland that you are willing to cooperate in any way possible,

    Reading this over, it strikes me that somewhere the relationship between supplier and customer has gone off of the rails in regard to commercial computer software of whatever type.

    The "balance of power" has shifted from the customer (NOT "the consumer", by the way) to the vendor/supplier in some way.

    "We will cooperate with Borland in any way possible." Pardon me? Since when should it be MY responsibility as a customer to "cooperate" with a company who theoretically wants to sell me more stuff and keep me coming back?

    Hell, if I am a big customer and I want my next copy of their software to be delivered in a green plaid package they should be getting the green paint out!

    What other industry is there where the supplier is in a position to basically threaten their customers, the customers bow to their demands however unreasonable, and then the customers, by golly, come back for more! "Sell me more software, please, I'll be good and give you more money. Kick me again!"

    Truly amazing. As I said, I don't think there is any other industry that operates in this manner, or could.

    --
    If you're a zombie and you know it, bite your friend!