Opinion ID: 77733
Heading Depth: 2
Heading Rank: 2

Heading: The Sale of Units of Software to Network Systems

Text: In June 1999, an individual who identified himself as Gino Barrett offered to sell units of Netware for approximately $2000 each to Network Systems, a computer hardware and software engineering firm owned by Michael Oken. Because the wholesale price would have been around $10,000 each, Oken sent two individuals, Scott Richardson and Donald Coleman, to inspect the units of software. When asked how he obtained the units, Barrett stated that he was a dealer of Novell software. At trial, Richardson and Coleman identified Robertson as Barrett. Network Systems purchased units of Netware from Robertson on more than ten occasions. During the period in which Robertson acquired Netware from Novell, Network Systems bought Netware only from Robertson. Robertson admits that Network Systems purchased 239 of the 378 units of Netware shipped by Novell to ACL Learning Center, Cobb Academy, Fulton County Educational Services, and Atlanta City Educational Services. There is no evidence that Robertson sold the other 139 units. Network Systems resold the units of Netware for a profit of $42,721. If the customer requested it, the unique serial number of each unit purchased was printed on the sales invoice. Serial numbers reflected in the sales invoices of Network Systems match serial numbers of units of Netware shipped by Novell to all four fictional educational institutions. In November 2004, Network Systems and Novell settled civil litigation related to the Netware purchased from Robertson. As part of a confidential settlement agreement, Network Systems paid Novell $125,000. Robertson asserts that Novell sued Network Systems for breach of a distributor agreement, because Network Systems purchased units of Novell software from a source other than Novell or an authorized Novell distributor, but there is no evidence in the record of the precise grounds for the lawsuit between Network Systems and Novell. In a victim impact statement made at sentencing, Oken mentioned [t]he Lanham Act but did not elaborate further.