Bruhn Newtech, Inc. v. United States

129 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1914, 2016 WL 7373888
CourtUnited States Court of Federal Claims
DecidedDecember 2, 2016
Docket16-783C
StatusPublished
Cited by3 cases

This text of 129 Fed. Cl. 656 (Bruhn Newtech, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bruhn Newtech, Inc. v. United States, 129 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1914, 2016 WL 7373888 (uscfc 2016).

Opinion

Motion to Dismiss; Subject Matter Jurisdiction; Failure to State a Claim; Breach of Contract; Copyright Infringement; Uniform Trade Secrets Act; 28 U.S.C. § 1498(b); 17 U.S.C. § 501.

OPINION

HORN, J.

FINDINGS OF FACT

Plaintiff, Bruhn NewTech, Inc. (BNT-US), filed the current complaint in the United States Court of Federal Claims asserting claims of breach of contract, copyright infringement, and violation of the Uniform Trade Secrets Act against the United States Marine Corps. 2 In the current complaint before this court, plaintiff asserts that, pursuant to the Contract Disputes Act, 41 U.S.C. § 609 (2012), it submitted a breach of contract claim to the contracting officer on August 31, 2015, which was denied on January 8, 2016, and which decision plaintiff now seeks this court to review.

According to the complaint, plaintiff, BNT-US, is “a Delaware corporation” that is “a wholly owned subsidiary of Bruhn New-Tech A/S (‘BNT-Denmark’), a Danish corporation.” Plaintiff asserts that both BNT-US and BNT-Denmark “are in the business of marketing and selling commercial computer software created by BNT-Denmark.” 3 The commercial computer software “is sold worldwide and is utilized in military systems that track and analyze chemical, biological, radiological and nuclear agents (‘CBRN’) in battlefield or civilian environments.”

On May 13,1998, defendant awarded plaintiff a contract for commercial software, which was identified as contract number M67854-98-C-2076 (the contract). Under the contract, defendant purchased Bruhn NewTech’s NBC (Nuclear, Biological, and Chemical) Analysis software. The contract was intended to support the development of phase one of the Joint Warning and Reporting Network (JWARN). According to defendant, the Department of Defense has deployed the JWARN since 1998, and described it as “a collection of computer programs used to track and analyze chemical, biological, radiological and nuclear agents.” The “purchase description” for the contract stated that the JWARN phase one commercial software consisted of the Bruhn NewTech NBC Analysis software. The contract’s Statement of Work stated that the JWARN was intended to “provide uniform integration and analysis of Nuclear, Biological, and Chemical (NBC) detection information” on the battlefield and to “automate NBC warning and reporting for the Army, Navy, Air Force, and Marine Corps.” 4 The contract called for the delivery of “NBC Analysis Software,” and included additional contract line items for “Training Material,” a “Cqntractor Training Course,” “Commercial Software Manual,” and “Software Upgrade and Maintenance.” The Statement of Work explained that the tasks to be performed by plaintiff included “the delivery of the NBC analysis (NBCA) software packages, software maintenance and upgrades, contractor support, and training.” Plaintiff asserts that, during the life of the contract, “the NBC Analysis software was re-designated as ‘CBRN-ANALYSIS’ software.” In its complaint, plaintiff explains that the term “Software” used throughout the complaint “refers to the subject software licensed by *659 Plaintiff to Defendant under the Contract, regardless of whether designated as NBC Analysis software or CBRN-Analysis software.”

In its complaint, plaintiff states that the software it delivered to defendant under the 1998 contract is “the primary product of BNT-Denmark,” and that BNT-Denmark is “the proprietor of registered copyrights in the United States on the computer source code within the Software.” Plaintiff explains in its complaint that BNT-Denmark has authorized “Plaintiff to market and sell Software licenses to countries and government organizations outside of Europe” for many years. Plaintiff states that the software source code that was delivered under the contract finished development in 1998, and it was first published in January 1999. Plaintiff asserts that, after January 1999, “BNT-Denmark ... made refinements and improvements to the code, updating the Software at least once per year for its customers.” According to plaintiff, in 2014, BNT-Denmark completed copyright registration for the software code as it existed in January 1999, U.S. Copyright Reg. No. TX0007836500, and for the software code that was updated and improved after January 1999, U.S. Copyright Reg. No. TX0007836490. The Copyright Registration Certificate for Registration Number TX0007836500, the software code as it existed in 1998, identifies the “Title of Work” as “NBC Analysis—CRID 0040,” and the “Year of Completion” as 1998. Separately, the Copyright Registration Certificate for Registration Number TX007836490, the software as it existed after 1999, identifies the “Title of Work” as “NBC Analysis JWARN IF Phase 2, CRID 1489, 1490, 1491” and indicates the ‘Tear of Completion” as 2008. The author and copyright claimant of both registered copyrights is listed as “Bruhn New-Tech A/S,” “Citizen of: Denmark.” According to plaintiff, as a result of the copyright registration, “the Software as it existed on the date of the Contract is the subject of a US copyright registration, as are all updates and improvements made to the Software after that time and through the date of the relevant acts of breach and infringement.”

The 1998 contract incorporated Federal Acquisition Regulation (FAR) clause 52.227-19, “Commercial Computer Software—Restricted Rights,” and contained a commercial computer software license agreement (the software license agreement). Plaintiff asserts that the software license agreement granted defendant a “commercial, restricted, national license to use the Software.” According to the software license agreement, “[a]ll software to be delivered under this contract including source codes, is commercial computer software subject to restricted rights specified in FAR 52.227-19.” Additionally, the software license agreement provided:

The Government may make an unlimited number of copies of the software and may distribute and use the software in any computers owned or leased by the Government and operated by the U.S. Government personnel working for U.S. Government departments, organizations and agencies.

The software license agreement, however, also stated:

The Government shall not disclose the software and shall not give, sell, license or otherwise provide copies of the software or use of the software to any third party person or entity including but not limited to members of the public, governments of foreign countries, or international agencies or organizations.

In addition to the software license agreement, plaintiff alleges that it placed the following legend on copies of the software that it provided to defendant:

COMMERCIAL COMPUTER SOFTWARE
RESTRICTED RIGHTS

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Bluebook (online)
129 Fed. Cl. 656, 2016 U.S. Claims LEXIS 1914, 2016 WL 7373888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bruhn-newtech-inc-v-united-states-uscfc-2016.