Wednesday, January 6, 2010

COPYRIGHT, TRADE SECRETS: CYBERsitter, LLC Sues Peoples Republic of China, PC Manufacturers, Others for Software Piracy

According to PC Magazine's security blog, Security Watch and Reuters, CYBERsitter, LLC (formerly known as Solid Oak Software) recently sued the Peoples Republic of China, PC manufacturers Sony, Lenovo, Toshiba, ACER, ASUSTeK, Haier Group and BenQ, and software developers Zhengzhou Jinhui Computer System Engineering and Beijing Dazheng Human Language Technology Academy for "misappropriation of trade secrets; unfair competition; copyright infringement; and civil conspiracy."

According to Security Watch, CYBERsitter, LLC is alleging that China (via its contracted software developers) illegally appropriated thousands of lines of code from CYBERsitter, an internet-filtering software that helps parents control websites accessed by children, then incorporated the code into Green Dam Youth Escort, China's Internet-filtering software.

According to Reuters, "[i]n mid-2009, China issued a requirement that all PCs sold in the country would have to carry the Green Dam software, which it said was designed to prevent the country's youth from watching pornography but was seen by some as a veiled move at broader censorship." The requirement was later rescinded after criticism and protests from human rights groups and others, but the manufacturers had already complied with the government mandate. CYBERsitter alleges that the manufacturers continued to distribute computers with the preloaded Green Dam Youth Escort software even after they became aware of the misappropriated code.

CYBERsitter is seeking over $2.2 billion in damages, representing 56.5 million unauthorized copies of CYBERsitter at $39.95 per copy.

More information about the lawsuit can be found on the Security Watch blog here and from Reuters, here.

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