Legal Question in Intellectual Property in North Carolina

Obligations after dissolution of S-Corps

I sold a computer software product to a corp. formed to market the product. Three of the 5 members of this corp were also members of another corp. The corp that was to market the product subsequently dissolved, yet the other corp of which the three members are in still market a version of the product. Since the original corp was dissolved, they no longer pay me royalties. They claim they rewrote the software, but the original agreement specifies it is in effect as long as the product is written in MS Access, which it still is. It also specifies it is in place for a minimun of 5 years, which have not yet expired. What are the legal implications? To me, it is an attempt to divert funds owed me.


Asked on 3/08/02, 5:25 pm

2 Answers from Attorneys
Martin Jenkins Martin Jenkins PLLC

Re: Obligations after dissolution of S-Corps

If your facts are accurate, it sounds like a straight-forward breach of contract case. (Or, if you have trouble reaching past the technical contracting party, an unjust enrichment case.)

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Answered on 3/08/02, 8:06 pm
Daniel Press Chung & Press, P.C.

Re: Obligations after dissolution of S-Corps

In addition to breach of contract/unjust enrichment, it may well be copyright infringement. You need to contact a lawyer experienced in software copyright and see if your work is copyrightable subject matter and if they are using enough of it to infringe. There may also be other claims, such as breach of fiduciary duty, that could be brought as well.

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Answered on 3/09/02, 1:29 pm


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