US government pays $50 million settlement for pirated software

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

US government pays $50 million settlement for pirated software

The US government has agreed to pay $50 million to settle a copyright infringement suit after the Army allegedly installed software on thousands of unlicensed computers.

Apptricity, an 80-employee company that supplies the Army with logistics software, filed a copyright infringement lawsuit with the US Court of Federal Claims seeking $250 million from the government.

In 2004, the Army paid for licenses for Apptricity software for three servers at $1.35 million each, along with licenses for individual computers. In 2007 the Army purchased licenses for another two servers and thousands of workstations, along with annual maintenance.

But Apptricity claims that the Army also installed approximately 100 server and 9,000 device licenses that it did not procure. The situation came to Apptricity’s attention when the US Army Program Director publicly stated in 2009 that thousands of devices had Apptricity software.

The software tracks the movement of goods, equipment and troops in real time across multiple time zones. The Army has used it in the Middle East and to handle emergency management efforts such as the aftermath of the January 2010 earthquake in Haiti.

“Field commanders were focused on the mission-critical nature of Apptricity software and the need to protect warfighters and facilitate mission objectives,” said Apptricity CEO Tim Garcia. “Our battle-tested integrated logistics software performed so well that it went viral.”

After mediation, the parties agreed a settlement of $50 million for the present and future use of the software.

The US government is a frequent proponent of tough penalties for violators of IP rights and has run initiatives including the Joint Strategic Plan aimed at curtailing copyright infringement.

more from across site and SHARED ros bottom lb

More from across our site

Top talking points also included news of an appellate ruling concerning ‘Pisco’ and Indian drugmakers gearing up to launch generic versions of Ozempic as Novo Nordisk’s patent expires
The government’s keenly awaited view on AI and copyright has positive themes but leaves rights owners wanting, says Rebecca Newman at Addleshaw Goddard
While IP Australia’s updated manual could be favourable to computer-implemented inventions, stakeholders would like to see whether a consistent and reliable standard is followed during actual examination
UKIPO will remain a competitive option as long as efficient service continues
A future opt-out has not been ruled out, but practitioners warn that the UK could fall behind in the AI race
US patent lawyers say they are increasingly advising clients on China strategies as corporations seek to gain leverage in enforcement, licensing, and supply chain management
Mike Rueckheim reunites with 12 of his former Winston & Strawn colleagues as King & Spalding continues aggressive hiring streak
As global commerce continues to expand through e-commerce platforms and digital marketplaces, protecting brands has become a growing challenge for organisations worldwide. Counterfeiting, intellectual property infringement, and online brand abuse are increasing across industries, making brand protection strategies a critical priority for businesses.
Henrik Holzapfel and Chuck Larsen of McDermott Will & Schulte explain why a Court of Appeal ruling could promote access to justice and present a growth opportunity for litigation finance
A co-partner in charge says the UK prosecution teams are a ‘vital’ part of the firm’s offering, while praising a key injunction win
Gift this article