ITECHLAW 2014 * Planning for the unexpected: A case study and lessons learned from a US class action and mediation and its effect on an Australian software developer (10131)
A small Australian software developer supplied software under a white label licence agreement to a large US based software house. The US software business was named in a class action lawsuit commenced in Boston, that was, in the opinion of all defendants completely without merit, but likely to cost many millions to defend. The Australian developer had taken out insurance.
The US software house made a claim under the indemnity in the white label agreement and the Australian software developer was ultimately joined as a defendant in the US proceedings. The Australian developer also made a claim under its insurance policy in respect of the indemnity claim and to defend the litigation. The matter went to mediation in Boston and was settled (although, as at the date of this submission, not yet sanctioned by the court).
As technology lawyers we draft contracts and assist our clients manage their risks in all manor of licencing and associated arrangements. However rarely do we get to see the contractual arrangements tested or argued. This paper will consider the matrix of circumstances and competing interests that existed and how they assisted or complicated the resolution of the dispute in mediation.
