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Software development partners battle it out in court

Publish date: 31 January 2007
Issue Number: 1168
Diary: Legalbrief eLaw
Category: General

The joint owners of a SA software development house have become bitter enemies, with six separate court cases in play as each accuses the other of reneging on agreements and flouting their fiduciary duties.

MyADSL.co.za reports that the clash within Authority Online has escalated into all-out litigation, with founder Chris Boyes-Moffatt claiming his business has been hijacked by the partner who invested in the venture and distributes its products. Two cases have been instigated by Boyes-Moffatt against his partner, Deon Botha, and Botha’s company, Ultimate Retail Solutions (URS), with a third case being prepared. The affidavits accuse URS of breach of copyright, illegally withholding licence fees paid by customers, flouting fiduciary duties and ignoring the rights of minority shareholders. But URS has instigated action of its own, claiming it is entitled to the rights of the software’s source code, accusing Boyes-Moffatt of defamation, and demanding compensation and a refund of some of its investments. Full MyADSL.co.za report

In the UK, a dispute between two software houses remains unresolved after the Court of Appeal refused to rule that one company definitely did not copy the other\'s software. The ruling does not mean that copying did take place, though. Out-Law.com reports that in an unusual case centring on a software development outsourcing contract, a development company pulled out of an agreed mediation process in order to seek a court order which declared them innocent of copying the other company\'s technology. The court had to make its decision without analysing any of the software involved. Point Solutions was commissioned by Focus Business Solutions to do some outsourced contracting work on Focus\'s market leading software, Goal. Both companies make software for the creation of electronic application forms in the financial services sector. Full Out-Law.com report

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