A full bench of Supreme Court of Appeals judges yesterday ruled Telkom and Marconi Communications would have to pay the full legal costs of Technical Information Systems (TIS).
This stems from an appeal lodged by Telkom against a copyright infringement ruling.
Last year, Telkom and Marconi were found guilty of copyright infringement after a complaint by TIS that its internally-developed software had been changed and was being distributed online by Telkom.
TIS had an agreement with Marconi that allowed the telecoms company to supply a telephone management system, Man3 000, to Telkom, which then supplied it to end-users. However, the agreement ended in March 2005 and was not renewed.
Despite this, Telkom continued to offer the Teltrace Soho System product for download via its Web site.
The system, sold under the name Teltrace Soho System, has a software interface component and a hardware component - known as a buffer box - that interfaces with a company's PABX system to collect data.
Telkom lodged an appeal against last year's copyright infringement ruling, but withdrew the action two weeks ago, without giving reasons. Despite this, TIS director Tim Hammerich says his company was awarded the cost of the appeal, including the costs of two counsel.
"The exact figures still need to be worked out, but we also managed to finally get Telkom to remove our software from its site," says Hammerich.
Meanwhile, he says TIS is seeking expert opinion in preparation for launching a lawsuit against Telkom and Marconi, which could total R122 million.
Hammerich says the damages claim for copyright infringement will amount to R95 million and TIS will seek a further R2.4 million for the continued distribution of the software outside of the agreement. He adds the company will seek R24 million for the publication of confidential documentation during the initial court case.

