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The client filed a lawsuit against Infor

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09.03.11, 13:01, Msk

The BMP America company, the regular customer of the supplier of ERP solutions of Infor, filed a lawsuit on vendor in response to its requirement of additional runtime royalty fees in the amount of $150 thousand.

According to the complaint which BMP America filed on February 24 to district court of the Western District of State of New York this manufacturing company of products from textiles and polyurethane elastomer for the first time obtained the software license MAPICS from Marcam company in 1995 for $3992, and then spent tens of thousands of dollars for the additional software and an annual service fee.

In 2004 SSA Global purchased Marcam, and in 2006 itself was purchased by Infor company. According to the contract, the software could be used only for data processing of BMP company, but not for provision of services on data processing to other companies. According to the judicial complaint, BMP adhered to these conditions.

In August the company approved result of audit of the software license, and at the end of December Infor contacted BMP, claiming that that violated conditions of the license agreement. At the same time, Infor referred to use of the software of BMP Asia Industries, BMP subsidiary company and also BMP system integrator - Innovative Solutions.

BMP answered Infor that access to the software by Asian divisions was provided via the terminal "only for the purpose of order placement of BMP for clients in Asia (i.e. BMP does not provide service in data processing for BMP Asia Industries)", having added that Innovative Solutions used the software only in the course of support of work of the BMP systems.

These explanations did not satisfy ERP supplier company, and she demanded that BMP Asia and Innovative Solutions obtained the license. BMP should pay the expanded one-time fee in the amount of $73.5 thousand for each company. In case of the consent of BMP to these conditions till February 28, Infor would refuse collection of a payment for Innovative Solutions, but BMP rejected the requirement, having referred to "non-compliance with accuracy" by legal department of Infor company.

On the basis of the e-mail messages received from Infor at BMP concerns and belief were created that Infor initiates legal procedure against BMP, said in the judicial complaint. BMP asks court to announce that the company did not violate copyright or terms of the contract that it is not a debtor of Infor and has right to use of the software.