Ubiquiti Pays Synopsys $18 Million to Settle Software Copyright Suit

In February 2017, Synopsys sued the network-equipment maker Ubiquiti Networks, a Ubiquiti subsidiary and one individual in federal court in California.

The allegations

Synopsys alleged that the defendants obtained its chip-design software under the pretext of evaluating it for licensing. It also alleged that, for about three years, they used evaluation keys and counterfeit license keys to access and copy the programs and support materials again and again.

The settlement

Ubiquiti settled on January 17, 2019. In its quarterly report to the SEC, Ubiquiti disclosed that it paid $18 million and agreed to a permanent injunction against any unlicensed use of Synopsys software. The court dismissed the case with prejudice. As is usual, the settlement includes no admission of liability.

Why it matters

Publishers of high-value engineering software do take large customers to court, and the cost of settling can far exceed the cost of the licenses.

Sources: Ubiquiti Form 10-Q for the quarter ended December 31, 2018; US District Court, N.D. Cal., No. 17-cv-00561.

Header photo: Michael from San Jose, California, USA, CC BY 2.0, via Wikimedia Commons (cropped and toned).