
Teamquest sues former parent Unisys for alleged licence breach
by Cath Everett in Silicon Valley
Teamquest has filed a complaint against former parent, Unisys, for an alleged breach of its software licensing agreement.
The performance management software supplier, which was spun off in 1991, filed papers in the US District Court for the Northern District of Iowa, Central Division, in the hope of winning punitive damages of more than $65 million.
It claims that Unisys had initially agreed to resell Teamquest products and pay it royalties based on a fixed price per unit of software sold, even though Unisys knew - but did not disclose to Teamquest - that "its computer systems were incapable of maintaining accurate records of units sold and revenue received".
Unisys also engaged in accouting practices that minimised its ability to account for royalties owed to Teamquest, the firm attested, and "extended licenses for customers without charge in a concerted effort to deprive Teamquest of rightful royalties". Unisys refused to comment, saying it had not yet seen the complaint.
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