Some years ago, Autodesk launched a law suit against CAD software vendor ZwSoft. The American company alleged that the Chinese one had copied its source code. The suspicion arose after a rare bug in AutoCAD involving the Hatch command exhibited identical behavior in ZwCAD. The suit ended in resolution, whereby ZwSoft agreed to allow Autodesk to check the source code three months before any release. The blame was placed on an employee who had borrowed the code, rather than write it from scratch.
For ZwSoft, this event was a setback. The company had originally relied on the IntelliCAD Technical Consortium for its code base, but then went through the arduous process of rewriting all its code from scratch to become independent of the ITC, just as Bricsys had done a few years earlier. Creating its own code would allow ZwSoft to change direction in the crowded field of AutoCAD workalikes.
After the lawsuit ended, the company returned to the ITC, using it as an umbrella against further legal action. The feature set of ZwCAD again aligned to that of IntelliCAD.
ITC vs GstarSoft, v2015
The umbrella of the ITC, however, isn't always a shield; it can also be a sword. The ITC has now twice launched law suits against another Chinese CAD software firm, GstarSoft, once in 2015 and again last month.
GstarSoft followed a similar route as ZwSoft and Bricsys, changing the code from IntelliCAD to its own version, proudly announcing that the process took three years and hundreds of programmers. The new code base is called GstarCAD8, where the '8' is actually the infinity symbol.
To check GstarSoft's claim of all-new code, the ITC requested that it be allowed to audit the code, in accordance with the ITC membership agreement that GstarSoft had signed. The Chinese company objected to being singled out in this way, saying the action would cause customers in China to lose confidence in it; it proposed that all other Chinese CAD firms using IntelliCAD code should also be audited during the same time period.
The ITC prevailed in Oregon court, winning a judgment of $273,892, which GstarSoft did not pay. As a result, GstarSoft cannot operate in the USA, and, I would presume, cannot operate in jurisdictions that have court order enforcement agreements with the USA.
You can read interviews with the two antagonists from back then:
ITC vs GStarSoft, v2019
Now the ITC is back with a second lawsuit against the GstarSoft. It asks the Oregon court for enforcement of the first judgement, repeats earlier claims (that GstarSoft used IntelliCAD code in its GstarCAD8 program, and that it is refusing an audit to determine whether code had been copied), but then adds this remarkable claim: that GstarSoft is soliciting ITC members to switch from IntelliCAD to GstarCAD8.
First page of case 3:19-cv-01963
The court document lists... Evidence of copying -- 'icad' and 'ic' identifiers appear in code, documentation, and/or support files. If GstarCAD8 were indeed truly written from scratch, then 'ICAD' and 'ic' would not normally appear, although they might be present in a limited number of cases to maintain compatibility with IntelliCAD, such as BricsCAD reading .icm IntelliCAD menu files.
Evidence of 'ICAD' in the help file for GstarCAD
Evidence of solicitation -- none provided.
This time, the ITC wants the judge to throw the book at GstarCAD, asking for
- Three counts of at least $10 million in damages each for copyright infringement, misappropriation of trade secrets, and breach of fiduciary duty
- Costs
- Immediate injunction against sales in the USA
As well, the ITC wants the court to order the Chinese company to
- Stop selling GstarCAD throughout the world, and to destroy all copies
- Write to all customers (about 600 thousand), telling them to stop using the software
- Assign the source code to Iron Mountain as the independent caretaker
- Report all financial and sales information regarding GstarCAD8
- Shut down gstarcad.net (the English language Web site) and all other sites selling the software
Here is the document filed by the ITC with the court in early December: www.intellicad.org/hubfs/GStar/1%20Complaint.pdf
Statement From Gstarsoft
by Meiyu Huang Regarding the recent ongoing intellectual property litigation between Gstarsoft Co., Ltd. and the IntelliCAD Technology Consortium in the U.S., Gstarsoft hereby makes the following statement:
1. The current GstarCAD is developed by near hundred programmers of Gstarsoft via years of hard work. Gstarsoft owns the intellectual property rights of GstarCAD and the copyrights have been registered and certificated by the PRC [China] Copyright Administration. With the continuous efforts of Gstarsoft and its partners, GstarCAD has been recognized by the market and has obtained certain fame among the relevant users.
2. As a software enterprise, Gstarsoft always attaches great importance to the protection of intellectual property and abides by global intellectual property rules. Since its establishment nearly 30 years ago, Gstarsoft has been recognized by many authoritative organizations at home and abroad, including the World Intellectual Property Organization (WIPO).
3. Gstarsoft has had no connection with the ITC since it quit the organization in 2015. In December 2019, the ITC filed a lawsuit against Gstarsoft alleging intellectual property infringement, which lacked facts and legal basis. We believe that Gstarsoft has the confidence and ability to defend the lawsuit and to strongly counter the ITC’s allegations.
4. Since April 2019, the ITC and some of its members began to harass Gstarsoft’s partners and customers frequently and actively both inside and outside of China, spreading false information, and sending contents of the complaint before the lawsuit is heard by the court. Such behavior has completely separated from the intellectual property litigation itself, and turned the litigation into a mean for some of its members to conduct unfair competition against Gstarsoft with the intention to damage the business and product reputation of Gstarsoft.
5. Against the aforesaid unfair competition behaviors of the ITC and its offending members, Gstarsoft has retained all relevant evidence and intends to take legal actions as soon as possible to investigate the organizations and individuals that continue to spread false information in bad faith through legal means, including but not limited to demanding compensation for all direct and indirect economic losses of Gstarsoft. [Meiyu Huang is Gstarsoft vp of international business development.]
What Ralph Grabowski Thinks
IntelliCAD is not open-source software, even though it has that reputation, perhaps because the ITC is a non-profit organization. It is closed-source, with the source code guarded by confidentiality agreements signed by staff and member companies. ITC members can expand on the IntelliCAD code, but cannot combine it with software that competes with the ITC. One part of the membership agreement states that the ITC can audit the software of members -- and ex-members -- to ensure that no breach has occurred.
- - -
When I investigated that GstarCAD8 release (equivalent to GstarCAD v2013-4), I found references to 'icad' in the documentation, but not in the program. For instance, the documentation stated that the Program and Product system variables return 'icad', but when I entered the two sysvars at the command prompt, the program returned 'gcad' and 'GstarCAD' respectively.
Similarly, the documentation for the Linetype command refers to icad.lin but the program provides and uses gcad.lin; there is no icad.lin file. I searched the program's .exe file and three largest .dll files with a hex editor, but found no references to 'icad'.
The follow-up releases, GstarCAD 2015 through 2020, also contain references to 'icad' in the help files.
The ITC notes that GstarCAD contains commands and system variables unique to IntelliCAD. I found that this was true through to GstarCAD 2020. However, DWG editors such as ARES (not based on IntelliCAD), BricsCAD (originally based on IntelliCAD but no more) and IntelliCAD contain system variables originally unique to AutoCAD so that they can be compatible with one another.
Software companies are permitted to copy each other's user interface, as established by a law suit going back to the days of Lotus 1-2-3. What they cannot copy is the code that operates behind the interface.
- - -
The ITC has shown that elements of the GstarCAD8 platform copy IntelliCAD's UI, and so it is asking to court that it be able to examine the underlying code -- or else be paid compensation. Should the ITC win a second time, GstarSoft is likely ignore the ruling a second time, in my opinion.
In the meantime, Gstarsoft threatens legal action against the ITC and ITC members its says were harassing it.
So, what is the point to this new law suit? I think that the ITC's legal representation, Harris Berne Christensen LLP, is sending the message that the ITC vigorously defends its product. Meanwhile, under the threat of a $30 million judgement, Gstarsoft awakens a dormant motivation to counter-sue.
|
Recent Comments