Microsoft is suing an Atlanta-based provider of software to insurers, claiming copyright infringement and breach of contract in licensing Microsoft products.
In the suit filed Thursday in U.S. District Court in Atlanta, Microsoft claims Ebix has reproduced software without authorization under a 2010 licensing agreement. It also claims Ebix refuses to conduct an internal audit or agree to an independent audit to determine the amount of money it owes.
A spokesman for Ebix said Friday that the company does not comment on pending litigation. Microsoft is seeking unspecified damages and an order for the Atlanta company to comply with its agreement.
Earlier this month, Ebix announced it would be acquired by an affiliate of Goldman Sachs Group for $820 million. After the deal closes, which is expected in the third quarter, Ebix will become a private company.
Ebix provides software products and e-commerce services to more than 100 companies in 50 countries. The companies include life, annuity, health and property & casualty insurance providers.
In its lawsuit, Microsoft said Ebix enrolled in a licensing program that allowed it to license its software at a volume discount on a pay-as-you-go basis. The “Select Plus” program provides master copies of Microsoft products and clients can make as many copies of the software they wish provided they order and pay for it promptly, the suit says.
Microsoft said Ebix refused to submit license orders monthly, refused to keep records of products it used and would not agree to be audited, all terms of its agreement, the suit says.
Microsoft said it asked Ebix to verify its licensing compliance in January 2012. “Since then, Ebix has systematically obstructed Microsoft’s verification rights despite admitting to unauthorized use of Microsoft products.”
The suit claims the company held up audits because of concerns about data privacy and insurance and when it finally agreed to an audit, it said it was having technical difficulties and couldn’t conduct one. The “stalling tactics” is proof it has breached its contract, Microsoft said.
The suit does not put a value on the licensing agreements.
