NetSys claims dismissed, damages awarded to Open Text
The international tribunal conducting binding arbitration in a dispute between between NetSys Technology Group, a distributor of software products based in Sweden, and Open Text has announced findings in favor of Open Text.
The final findings include:
1. The distribution and licence agreement entered into January 17, 1997 is declared to be at an end, for material and continuing breaches by NetSys of its terms, including selling outside its territory. The tribunal went on to find that, even if the agreement had not been ended, NetSys had failed to pay royalties in 1999 and its exclusivity expired after Dec 31, 1999.
2. The tribunal ordered NetSys to account for all profits it made for sales outside its territory, which has the effect of ultimately requiring NetSys to pay these amounts to Open Text once they are determined.
3. The PolarSearch Agreement was performed by Open Text according to its terms.
4. Open Text is awarded US$130,000 for unpaid hosting fees under the PolarSearch agreement.
5. As no evidence was advanced in support of NetSys' claims against Open Text, the counterclaim (approximately $117,000,000US) is dismissed without costs.
6. Open Text is entitled to recover its full costs of this arbitration including expert's fees, arbitrator's fees and lawyer's fees.
Any prior distribution privilege NetSys may have held has been extinguished. Open Text will take immediate steps to provide ongoing support to Scandinavian customers of the company's products.