#2 was certainly the scenario.

So what's the deal. Was or is Scott being bullied out of both of his businesses? Didn't Scott maintain an equity stake in both companies?

That write up on the case just sounds like thievery.

Matt



Andy Schmidt wrote:

Well, Darin -- it may be relevant to look at the timeline.

Example:

1.       Declude is developed

2.       Declude is purchased

3. Developer keeps source code and NOW starts to reuse it to develop DNSstuff.com

vs.

1.       Declude is developed

2.       DNSstuff is developed

3.       Declude is purchased from Developer

4.       DNSstuff is also purchased from Developer

I would see how concerns may be raised in the FIRST case. But in the SECOND case, there are no hidden surprises. Over time, they purchased two different applications that had previously been developed by the same developer, and obviously would share some common generic functions.

If I sold you a "one of a kind" car and then sold you a "one of a kind" motorcycle -- you can't act surprised years later when you "find out" that I was using the same hex-nuts and headlight bulbs, where appropriate.

*From:* [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] *On Behalf Of *Darin Cox
*Sent:* Tuesday, September 09, 2008 2:03 PM
*To:* declude.junkmail@declude.com
*Subject:* Re: [Declude.JunkMail] Re:Declude vs Perry (ES)

Did he keep a copy of the code, or did he just use libraries he developed through the years, as all programmers do, that he used for all of his programming? It's not possible to tell that without an in-depth review of source code for both products.

Also, bear in mind that programmers tend to do the same tasks the same way, so two completely separate development projects can have very similar looking code just due to the way a particular programmer solves problems and writes his/her code.

Also, as someone on another list pointed out, you typically aren't buying the soure code, per se, when you buy all rights to a product. What you typically buy are the rights to all marketing for the product (names/trademarks, domain names, etc.), the customer base and any other data specific to the product, and a non-compete from the seller. While source code is necessary to continue development of the product, and is included in the sale, copyrights on the source code are often meaningless due to the above points. In this case, the additional product is not a competing product. I don't know the terms of the sale, however, so it is possible that the source code was central to the purchase. However, the above two points still apply.


Darin.

----- Original Message -----

*From:* Craig Edmonds <mailto:[EMAIL PROTECTED]>

*To:* declude.junkmail@declude.com <mailto:declude.junkmail@declude.com>

*Sent:* Tuesday, September 09, 2008 1:42 PM

*Subject:* RE: [Declude.JunkMail] Re:Declude vs Perry (ES)

I am not a lawyer so dont understand 100%.

So Scott Perry agreed to sell the code but kept a copy anyway and when the new owners of Declude went to raise capital they found out that Scott Perry had already developed an additional product with the code they had bought.

I dont see the problem myself?

The new owners of declude are just protecting their interests no?

Kindest Regards
Craig Edmonds
123 Marbella Internet Services
W: www.123marbella.com <http://www.123marbella.net/>
E : [EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]>



*From:* [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] *On Behalf Of *Nick Hayer
*Sent:* 09 September 2008 16:16
*To:* declude.junkmail@declude.com
*Subject:* [Declude.JunkMail] Re:Declude vs Perry

Hi David -

Below was forwarded to me - as a long time Decluder I am very disappointed in seeing something like this -

-Nick

http://dozierinternetlawpc.cybertriallawyer.com/computer-lawyer

DECLUDE, INC. AND DNSSTUFF, LLC. v. R. SCOTT PERRY DISTRICT OF MASSACHUSETTS (BOSTON) 1:08-cv-11072

FILED: 06/25/08

*The ownership of source code and the ownership of the code in general used to build a website is often an overlooked issue. Make sure that you have spelled out not only the ownership of the code but also the requirements relating to what code can be retrieved from the public domain. If you are using a web developer who retains ownership of source code then you risk having that developer use the code with future competitors at much lower costs and with the benefit of your intellectual capital in developing the architecture, engineering, and business processes. *

Declude purchased the Defendant's anti-virus, anti-spam and anti-hijacking software in September, 2000, and sold the products as "Declude Virus", "Declude Junkmail", and "Declude Hijack". The Defendant, R. Scott Perry, allegedly used the same source code in developing an additional product, and when the Plaintiff went to venture capitalists to raise capital, the detailed due diligence revealed that Defendant had retained a copy of the source code contrary to the provisions of the purchase agreement in 2000, and had again sold some of the same code to the Plaintiff in the new product he had launched.

The Plaintiff has sued the individual Defendant for copyright infringement, breach of contract, fraud, conversion, unjust enrichment, and unfair and deceptive acts and practices. Dozier Internet Law Cross-Reference Number 1190.


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