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

Patrick Zhang, formerly of Atlassian and TiVo, will become Via’s vice president of licensing and commercial strategy, tasked with helping expand client partnerships and licensing deals
IP services firm says new platform will cut patent portfolio analysis from months to minutes and optimise monetisation efforts
New role for the High Court judge will leave a gap for an IP specialist judge at the first instance
Laura Achával, founder of Achával IP in Argentina, shares how an evolving vision led her to launch her own practice
Monetisation is standing at the forefront of patent development, and one firm says AI is increasingly being deployed
Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Gift this article