Online Software Company Crashes for Selling First and Asking Questions Later

Originally published by Justin Yee.

Gone are the days when online companies promised everything to their customers, but failed to deliver what their customers truly wanted (or needed).

On Tuesday, November 10, 2015, a jury in Silicon Valley (US District Court, Northern District of California) unanimously returned a verdict in favor of Vethan Law Firm, P.C. (VLF)’s client in a software and web application development case. The dispute involved promises made by Photon Infotech Private, Ltd. (“Photon”), an international software development company that develops unique software, including Siri (a voice recognition software used on iPhones).

VLF’s client, Simulados Software, alleged that Photon promised to create a software platform for Simulados Software’s primary product on a PC and Mac platform, and a web application; but misrepresented the expertise of its design team and the quality of the products it would deliver. Photon counterclaimed that it had substantially performed, and that Simulados Software failed to pay the full amount due under the contract. After a one week trial, the jury deliberated for almost two days, and returned a verdict in favor of VLF’s client, finding that Photon breached its development contract with VLF’s client, Simulados Software, and fraudulently induced Simulados Software to sign the development contract. The jury awarded a total verdict amount of almost $900,000 in favor of Simulados Software for lost profits and out of pocket expenses, and did not award Photon anything on its counter-claim against Photon for payment. VLF will further claim an additional recovery of approximately $200,000 in attorney fees to represent our client and defend it against Photon’s claims.

Whether online or on the street, misrepresentations by online service providers have the potential to cause serious harm to aggressively growing companies. Speak to VLF’s business attorneys and copyright lawyers to protect your intellectual property.

The post Online Software Company Crashes for Selling First and Asking Questions Later appeared first on Vethan Law Firm.

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