A few days later, Mitug appealed in a similar manner also through its attorney. Appeals, also referring to copyrights, were sent both to Shva and to the company that, according to reports, was expected to win the tender (E/21 and E/22, respectively).
21. Shva's counsel responded that an agreement had been signed for the sale of Shva's ATM network to Margalin. The letter noted that Shva and the Plaintiff are divided regarding the right of ownership in the Software; that Shva did not sell the ownership of the Software and the Source Code remained in its ownership, and Mitug's rights in the Source Code defined in the 2005 Agreement were fully preserved; and that within the framework of the sale agreement, Shva would transfer to the purchaser the ATM machines it owned, with each machine including an authorized copy of the Software (MultiXFS) for which full licensing fees had been paid (Letter dated July 22, 2013, E/20).
22. Following this, a "Warning Prior to Taking Legal Proceedings" was sent on behalf of Mitug (E/19). Shva rejected the warning and referred to the arbitration clause in the 2005 Agreement (Letter dated July 25, 2013, E/18). The purchaser's counsel also rejected Mitug's claims, noting that Shva had provided a detailed response to the claims and that this was a matter between the Plaintiff and Shva (E/16).
23. Despite the warning letters, Mitug did not open a proceeding in 2013 nor close thereto. In an email dated September 8, 2013, to Milvitzky (Shva), Shitrit wrote that due to circumstances and matters beyond his control, he was forced to cut off the proceedings regarding the matter but still stands behind the letters sent and reserves all rights of himself and Mitug (E/14).
Shitrit's next contact with Shva was in April 2017 (E/11), and after further correspondence, including vis-à-vis Keren HaTamar (E/7-E/8), the instant lawsuit was filed in June 2017.
Normative Framework
24. The main causes of action upon which Mitug relies are claims for breach of contract by Shva, inducing breach of contract by Keren HaTamar, and copyright infringement in the Software by both Shva and Keren HaTamar.