Caselaw

C.C. 32162-06-17 Mitug Ma’archot Mevuzarot Ltd. v. Automated Bank Services Ltd. et al. - part 10

March 7, 2023
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101. Keren HaTamar claimed that there is no difficulty regarding additional copies... given Shva's ownership... As we saw, the question of ownership was decided in Mitug's favor...

102. Keren HaTamar further claimed that in any case Shva was entitled to assign the right to install the Software on additional ATM machines against payment...

103-106. (Analysis of this claim). Even under this assumption... Keren HaTamar did not comply with the agreement provisions (reporting/payment). "Purchase before installation".

This conduct... can be considered breach of contract and... direct copyright infringement (copying).

107. ... Another possibility is that the Source Code was not transferred... but the copies were created via the Source Code (implying cooperation between Shva and Keren HaTamar)... In any case, breaches of agreement and copyright infringements.

Note Regarding the Source Code

108-111. (Discussion on the factual dispute: Did Shva transfer the Source Code to Keren HaTamar?).

Basically "word against word"... I will not be able to determine as a factual finding that the Source Code was transferred...

Additional Interim Summary

112. From the above it emerges that ownership in the Software remained Mitug's and Shva was entitled to transfer to Keren HaTamar the copies for which it purchased usage licenses.

Transfer of 290 copies... was lawful.

One copy, "The Additional Copy", was created and installed contrary to authorization...

Copies installed in additional ATM machines... were created in a manner contrary to the license agreements...

Absent a possibility to determine a factual finding of transfer of the Source Code... there are no conclusions regarding breaches... in this matter.

Additional Causes and Claims

113-114. (Rejection of Trade Secret theft claim concerning the source code, as it overlaps with copyright or wasn't proven).

115-120. (Rejection of Unjust Enrichment claim). The Software was necessary, but not the "heart" of the 63 million NIS transaction...

122. The Plaintiff did not lift the burden to convince that the Software is the core of the system...

Remedies

123. ... Injunctions, mandatory orders, rendering of accounts, and monetary.

Injunctions and Mandatory Orders

124. (Mitug requested orders to stop use and remove software).

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