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 2025

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

Åsa Gustafson, global patent paralegal manager at Zacco, provides insight into the world of a paralegal, explains how she keeps abreast of legal developments, and reveals a passion for weaving
Alif Gultom and Andrew Diamond of Januar Jahja and Partners explain why Indonesia must adopt reforms against bad-faith filings and safeguard its trademark system for the future
In the third episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss the ‘Women in IP’ network and the current state of diversity within the profession
Practitioners, including two ex USPTO directors, say the Patent Eligibility Restoration Act could restore clarity and predictability to US patent law, though concerns remain
News of an alliance between two Malaysian law firms and the launch of a self-help video aimed at supporting IP professionals through menopause were also among the top talking points
Speakers at the EUIPO’s IP Mediation Conference discussed how lawyers can act in tandem with clients during mediation, and the importance of showing a united front
A report that revealed top legal LinkedIn influencers are generating hundreds of thousands in advertising value is the push lawyers need to up their social media presence
Speakers at the EUIPO’s Mediation Conference say mediation can offer a ‘cathartic’ and effective alternative to litigation that IP owners should consider
Partner Scott Sudderth says he is looking forward to building strong client relationships and expanding the firm’s patent practice
Find out which firms secured the most nominations for Managing IP’s Asia-Pacific Awards 2025, ahead of the winners being revealed on November 6
Gift this article