http://www.wps.com/FidoNet/FidoNews/1988/FIDO533.NWS http://www.ordiecole.com/html/pkzip.html ----------------------------------------------------------------- FidoNews 5-33 Page 1 15 Aug 1988 ================================================================= ARTICLES ================================================================= From: System Enhancement Associates, Inc. (SEA) and PKWARE, Inc. and Phillip W. Katz (PK) August 2 1988 - Milwaukee, WI In the first known "Shareware" litigation, pending in the local United States District Court, the parties System Enhancement Associates, Inc. (Plaintiff - SEA) and PKWARE, Inc. / Phillip W. Katz (Defendants - PK), after reaching agreement, consented to the entry of the attached Judgment for Plaintiff on Consent. That Judgment was entered by Judge Myron L. Gordon, effective on August 2, 1988. Part of the agreement reached by the parties included a Confidential Cross-License Agreement under which SEA licensed PK for all the ARC compatible programs published by PK during the period beginning with the first release of PKXARC in late 1985 through July 31, 1988 in return for the payment of an agreed upon sum which was not disclosed. Additionally, PK was licensed, for an agreed upon royalty payment, to distribute its existing versions of PK's ARC compatible programs until January 31, 1989, after which PK is not licensed and agreed not to publish or distribute any ARC compatible programs or utilities that process ARC compatible files. In exchange, PK licensed SEA to use its source code for PK's ARC compatible programs. PK agreed to cease any use of SEA's trademark "ARC" and to change the names or marks used with PK's programs to non-confusing designations. The Judgment provided for the standard copyright, trademark and unfair competition injunctive relief for SEA against PK, as well as damages and litigation expenses to be paid by PK to SEA. Both parties agreed to refrain from any comment concerning the settlement of the disputes, other than the text of this press release. Also, the parties instructed all of their representatives to refrain from any such activity. Any other details of the Cross-License Agreement were agreed to be maintained in confidence and under seal of the Court. In reaching the agreement to dispose of the pending litigation and to settle the disputes that are covered thereby, PK did not admit any fault or wrongdoing. ----------------------------------------------------------------- FidoNews 5-33 Page 2 15 Aug 1988 U.S. DIST. COURT EAST DIST. WISC. FILED SOFRON B. NEDILSKY AUG 1 1988 /s/ in chambers UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF WISCONSIN ---------------------------------------------------------- SYSTEM ENHANCEMENT ) ASSOCIATES, INC., ) ) Plaintiff, ) ) v. ) Case No. 88-C-447 ) PKWARE, INC. and ) PHILLIP W. KATZ, ) ) Defendants. ) ---------------------------------------------------------- JUDGMENT FOR PLAINTIFF ON CONSENT ---------------------------------------------------------- THIS MATTER, having been brought before the Court, on joint application by the parties, and upon the respective counsels' representation that the parties hereto have settled and composed their controversies that caused this action to be instituted in a CONFIDENTIAL CROSS-LICENSE AGREEMENT, dated effective as of August 1, 1988 between the parties hereto, a true executed copy of which is hereto attached under the seal of the Court, to be opened only upon further order of this Court; and Each of the parties by their respective counsel have stipulated and agreed to the entry of this JUDGMENT FOR PLAINTIFF ON CONSENT and as to the form thereof, as well as the final disposition of this matter thereby; NOW THEREFORE, the Court having been fully advised of the foregoing premises and agreements: IT IS HEREBY ORDERED AND DECREED THAT: (1) Defendants and each of them, jointly and severally, and any of their agents, servants or any in active concert or participation with any of them, be and hereby are enjoined permanently from infringing Plaintiff's copyrights in any manner, and from publishing, licensing, selling, distributing or marketing or otherwise disposing of any copies of Defendants' works PKARC and PKXARC, except as expressly provided for otherwise in the Agreement between the parties effective as of August 1, 1988; and from infringing in any manner Plaintiff's trademark ARC; and (2) Defendants, jointly and severally, are hereby ----------------------------------------------------------------- FidoNews 5-33 Page 3 15 Aug 1988 Ordered to pay Plaintiff such damages as Plaintiff has sustained in consequence of Defendants' acts of infringement of Plaintiff's copyrights, trademark and the unfair trade practices and unfair competition by paying the amounts specified in and at the times stated in the Agreement between the parties effective as of August 1, 1988; and (3) Defendants are hereby ordered to deliver up to the Court for destruction all copies of any infringing work, including all copies of said works entitled PKARC and PKXARC, in the possession or control of Defendants or either of them or any of their employees, agents, servants, distributors, or licensees, as well as all computer media, diskettes, documentation and any means for making such infringing copies, which are not expressly licensed under the Agreement between the parties effective as of August 1, 1988 or which are on hand as of the termination date of the license granted by Plaintiff to Defendants as specified the Agreement between the parties effective as of August 1, 1988, and shall no later than February 1, 1989 certify to the Court in writing that all copies have been destroyed and that they have retained no copies; and (4) Judgment is hereby entered awarding Plaintiff the costs of this action and reasonable attorneys' fees against Defendant in the amount specified in the Agreement between the parties effective as of August 1, 1988. SO ORDERED. /s/2nd MLG This 1st day of August, 1988 ("1st" struck out) /s/Myron L. Gordon Myron L. Gordon UNITED STATES DISTRICT JUDGE /s/2nd KAK Entered on this 1st day of August, 1988 ("1st" struck out) /s/Katherene M. Kirchman /s/Deputy Clerk of Court STIPULATED and AGREED TO AS TO FORM AND CONTENT: ----------------------------------------------------------------- FidoNews 5-33 Page 4 15 Aug 1988 This /s/29th day of July, 1988. By: /s/Michael A. Lechter Attorneys for Plaintiff. FOLEY & LARDNER By: /s/Michael A. Lechter Michael A. Lechter, Esquire 777 East Wisconsin Avenue Milwaukee, Wisconsin 53202 and Thomas M. Marshall, Esquire Powder Mill Village 89 Patriots Road Morris Plains, New Jersey 07950 This /s/29th day of July, 1988. Attorneys for Defendants. FULLER, PUERNER & HOHENFELDT, S.C. By /s/Nicholas A. Kees Nicholas A. Kees, Esquire 633 West Wisconsin Avenue Milwaukee, Wisconsin 53203 ATTACHMENT UNDER SEAL OF THE COURT: CONFIDENTIAL CROSS-LICENSE AGREEMENT EFFECTIVE AS OF AUGUST 1, 1988