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

Erise IP has added a seven-practitioner trademark team from Hovey Williams, signalling its intention to help clients at all stages of development
News of prison sentences for ex-Samsung executives for trade secrets violation and an opposition filed by Taylor Swift were also among the top talking points
A multijurisdictional claim filed by InterDigital and a new spin-off firm in Germany were also among the top talking points
Duarte Lima, MD of Spruson & Ferguson’s Asia practice, says practitioners must adapt to process changes within IP systems, as well as be mindful of the implications of tech on their practices
Practitioners say the UK Supreme Court’s decision could boost the attractiveness of the UK for AI companies
New awards, including US ‘Firm of the Year’ and Latin America ‘Firm to Watch’, are among more than 90 prizes that will recognise firms and practitioners
DWF helped client Dairy UK secure a major victory at the UK Supreme Court
Hepworth Browne led Emotional Perception AI to victory at the UK Supreme Court, which rejected a previous appellate decision that said an AI network was not patentable
James Hill, general counsel at Norwich City FC, reveals how he balances fan engagement with brand enforcement, and when he calls on IP firms for advice
In the second of a two-part article, Gabrielle Faure-André and Stéphanie Garçon at Santarelli unpick EPO, UPC and French case law to assess the importance of clinical development timelines in inventive step analyses
Gift this article