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Copyright Terms
Press Release: 02-17-99 * Contact: Marc Perkel * 417-866-1222
Network Associates Rips off small Software Developer Computer Tyme.
Network Associates, formerly McAfee, has breached its Software Contract with Computer Tyme Software Lab the two companies signed in 1994. Under the agreement, Network Associates was to bundle Computer Tyme's INI file manager with each copy of their NetTools product. In January of 1999, Network Associates arbitrarily decided to stop paying Computer Tyme royalties pursuant to the contract.
This is a "David and Goliath" type story. Network Associates is ripping off a small one programmer software house hoping that Computer Tyme Software doesn't have the resources to do anything about it. If you are a reporter and want to cover an interesting story, please contact me at the address below.
Network Associates (McAfee) is the owner of many software packages including ZAC, Saber Lan Workstation, Saber Software, Net Tools, NetTools, Anti Virus, Virus, Network Associates, McAfee Total Virus Defense, McAfee Helpdesk, McAfee Service Desk, Sniffer, Network General, PGP, Security, McAfee Helpdesk, McAfee Service Desk, Sniffer, Network General, PGP, Security, Helpdesk, and Dr. Solomon.
Important Links
It makes the entire software industry look bad when companies like Network Associates breach their contracts with small software suppliers like Computer Tyme. |
Computer Tyme's IniTool program was so good that McAfee chose to buy IniTool instead of using their own IniMan product for free. |
McAfee's end of the bargain
Although Computer Tyme provided McAfee with a solid software product, McAfee has always had problems making their royalty payments on time. Not only were they often late, but they would come up short on the count. McAfee has never really had a system where they actually knew how many units they shipped. A problem that Computer Tyme has a hard time understanding. At one point Network Associates was almost a year behind on their royalty payments. At first we just assumed they hired incompetent help, but now I think they were trying to cheat me every chance they got. I think that over half the time I would have to pester them to get it right and they would have to send an additional check to make up the short amount.
More Problems in 1998
I started having additional problems in 1998. I got a good check in April for Q1 of 1998. However, Q2 was rather short. Then the Q3 check came and it was even less, and it had a bunch of unexplained deductions on it. I tried to get Network Associates to explain it and they stonewalled me. Then finally in December I get a letter telling me that they haven't bundled my software since July of 1998. They even had the nerve to claim that I owed them money!
Network Associates have over the years made a lot of mistakes in calculating Computer Tyme's royalty payments, and always in their favor. |
Network Associates Excuse
In a conversation on the telephone with Kent H. Roberts, Director of Legal Affairs for Network Associates, they claim that they have a right to stop bundling IniTool any time they want. Computer Tyme doesn't dispute that they can ship what they want, but the contract isn't about what they ship, but the number of units of the "NetTools Bundle" they sell. I compared it to buying a hamburger at McDonalds. If you don't eat it, you still have to pay for it.
There are two flaws in their argument. A software bundling agreement is an agreement that they are going to bundle the software and pay a royalty for each copy. Because of the agreement to bundle, they are agreeing to a large volume, and the royalty price is agreed to based on the fact that this program is going out with each and every unit they sell. That's why Computer Tyme agreed to a 17 cent a license price. If Network Associates feels they don't have to bundle the software, then why did they enter a bundling agreement?
Network Associates is trying to pretend that they don't know that a "Software Bundling Agreement" is an agreement to bundle software. |
If Network Associates can decide out of the blue to stop bundling the product, then why can't Computer Tyme, out of the blue, decide the same thing? Suppose I called up Network Associates and said, I've decided that you should stop shipping IniTool today. What would they do? They'd point to the contract and say that I can't do that. So if this contract would protect them from Computer Tyme deciding to stop the bundling process, why then doesn't it stop Network Associates from doing the same thing? In fact, it does.
On January 11th 1999, Network Associates sent a certified letter to Computer Tyme terminating the contract. In their letter it says, "This letter constitutes notice of termination of the above-referenced Software Bundling Agreement pursuant to Section 11.1 thereof." According to the contract, they have the right to do this. However, the effective date of termination is July 1st 1999, not July 1st 1998. Notice must be given 30 days before the start of the next 6 month renewal period. The next period after January 11th 1999 is July 1st 1999. Computer Tyme contends that by sending this letter, Network Associates has acknowledged that Section 11.1 is, in fact, the correct method of terminating the contract, and that claiming that they stopped shipping IniTool is not.
Network Associates is not some little ma and pa company who doesn't understand contracts. You can't be a billion dollar software company without knowing what a software bundling agreement means. Computer Tyme therefore contends that Network Associates is acting in bad faith in breaching this contract.
Network Associates is Pirating my IniTool Software
Although Network Associates claims that they are no longer shipping IniTool, they are in fact still licensing it. Network Associates licenses their software for a limited period of time and then it has to be renewed. A person who doesn't renew is expected to remove the software from their system. Computer Tyme have been paid based on these renewals.
Now Network Associates claims they are no longer shipping IniTool to it's customers. But have they told these existing customers that are using IniTool that they have to stop using the product? No! These IniTool users are paying Network Associates money to renew IniTool, and Network Associates isn't paying Computer Tyme any royalties. If Network Associates really is going to stop licensing IniTool as they claim, they are obligated to inform their customers to remove IniTool from their systems and stop using the product.
Network Associates has made no effort to contact their customers to inform them that they are no longer licensed to use IniTool. Nothing on their web site indicates that IniTool is no longer a part of their software products. |
The Y2K Issue
Network Associates is shipping an older version of IniTool. Computer Tyme will not certify that version as Y2K compliant. Computer Tyme will be able to produce a Y2K compliant version of IniTool well before the end of the year. I'm not saying the IniTool will crash in 2000. I don't know of any bugs in it. IniTool is written in MarxMenu. MarxMenu is another Computer Tyme product. I have made a number of Y2K fixes to MarxMenu since the version of IniTool that McAfee shipped was compiled. I would rather have IniTool users get a version compiled with the Y2K compliant MarxMenu.
Computer Tyme in no way warrants that the version of IniTool that Network Associates has shipped to its customers is Y2K compliant. |
Where we Stand
Now, in spite of our contract, Network Associates has made it clear that they are not going to honor our contract and that they are going to screw me out of my money. I'm rather surprised by this. I do business with a lot of big companies and I rarely ever get burned. Most big companies are of high integrity and can be trusted. Obviously there are some exceptions and it would appear that Network Associates is one of them.
Computer Tyme seeks help from anyone who can assist in getting Network associates to honor their contract. |
Here's a list of things I need:
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