A federal bankruptcy judge has ruled that a declaration of bankruptcy will not shield a Texas company accused of pirating Novell software.
Novell sued Shawn Richeson and his company RTI of Killeen, Texas, in November 1994. The suit accused RTI of illegally manufacturing and selling counterfeit software.Novell's anti-piracy team received information that RTI was selling counterfeit versions of Novell software to several branches of the United States Army without the Army's knowledge.
RTI filed for bankruptcy in August 1995. However, federal law states that intentional torts, such as counterfeiting, cannot be discharged in bankruptcy.
"We are very happy with the judge's ruling in this case," said David Bradford, senior vice president and general counsel for Novell. "We have demonstrated once again that Novell is committed to fight this type of activity and that we will not allow counterfeiters to use the bankruptcy laws as a shield to legal liability."