riddle@hoss.unl.edu (Michael H. Riddle) (10/30/90)
An interesting item appeared recently in several newspapers. A small
Silicon Valley software house, Logisticon, apparently had a contract
with the giant Revlon for process and inventory control systems.
The stories indicate that Logisticon delivered the product and Revlon
was using it, but the software wasn't doing everything Revlon thought
it should. While the stories indicate Logisticon was working with
Revlon to fix the problems, they must not have been making much
progress.
Revlon withheld (or threatened to withold) substantial payment, and
threatened to cancel the contract.
So far, an ordinary contract dispute? Remember, this is Silicon Valley!
{begin telecom angle
Logisticon had dial-up access to the Revlon system, so late one night
recently they dialed up and disabled the software, in the process
encrypting at least the critical parts of the data. According to the
news reports, two major Revlon distribution centers were shut down for
three days.
Logisticon then re-enabled the software, apparently at the advice of
their counsel.
end telecom angle}
As you can imagine, the lawyers are licking their chops and each side
is trading charges.
Revlon accuses "computer terrorism."
Logisticon responds with [high tech] repossession of unpaid-for
merchandise.
To a law student with 20+ years telecom experience, this is a
fascinating case. Almost certainly wiser heads will prevail and it
will settle, but it could turn out to set new law as the courts play
catch-up with the modern world.
riddle@hoss.unl.edu | University of Nebraska
riddle@crchpux.unl.edu | College of Law
mike.riddle@f27.n285.z1.fidonet.org | Lincoln, Nebraska, USA