Copyright and Contract Damages for Inadvertent Software Distribution

From: Michael Sobel <msobel[_at_]gj.com>
Date: Tue, 21 Apr 1998 09:07:24 -0700

Has anyone come across any law concerning what damages (if any) might be due for the inadvertent distribution of another's software, where no harm results?

For example: A & B enter into an agreement whereby B is to pay A a license fee for every copy of A's programming code that B incorporates into its own software and sends to customers. An innocent screw-up occurs (essentially, someone presses the wrong button) and B inadvertently includes some of A's code (inoperative to the customers) in software packages sent to customers. As soon as this is detected, all of the inadvertently shipped code is retrieved. In the end, B did not benefit from the screw-up (e.g., customers were not charged more for the screwed-up version of the software), the customers did not benefit from it (indeed, most--if not all--did not know that the wrongfully shipped code was even there, and the customers were not capable of using the code), and A did not lose any sales.

Is anyone aware of any authority in these circumstances as to whether copyright damages or breach of contract damages (such as contract license fees) would be due/not due? (Of course, the facts also would affect what a jury might award in copyright statutory damages as well.)

Many thanks for any leads--



Michael E. Sobel, Esq.
Graham & James LLP
600 Hansen Way
Palo Alto, California 94304
msobel[_at_]gj.com
(phone) 650/856-6500
(fax) 650/856-3619
Received on Tue Apr 21 1998 - 16:16:25 GMT

This archive was generated by hypermail 2.2.0 : Mon Mar 26 2007 - 00:35:29 GMT