Microsoft suit against Ebix allowed to proceed

A U.S. district judge has shot down an attempt by EBIX to have a copyright suit filed by Microsoft dismissed, arguing Microsoft's allegations were sufficient for the suit to proceed.

Microsoft sued Ebix last year for copyright infringement and breach of contract, alleging the insurance software vendor made unauthorized copies of Microsoft products and refused to do an independent audit to determine how much it owes.

Ebix is also contending with investigations from the SEC and a U.S. Attorney office, and reportedly one from the FBI as well. The company announced earlier this month a court had given preliminary approval to a $6.5M investor class-action settlement.

Comments (11)
  • Contrarian Research
    , contributor
    Comments (168) | Send Message
    The SEC and FBI investigations are in the pastor are speculation as far as I'm concerned.


    The DOJ investigation against the Goldman Sachs Deal is what is pushing the stock price down.
    And of course the short attacks/articles.


    Future investors please do your due diligence. I still believe Ebix is one of the greatest opportunities in the stock market today. Investors who have held throughout the volatility after the Goldman crash have been handsomely rewarded, but there is still significant upside and irrationality that exists. The moat is too wide.
    14 Feb 2014, 07:20 PM Reply Like
  • sid18
    , contributor
    Comments (380) | Send Message
    Handsomely rewarded indeed. Lots of institutional buying recently.
    14 Feb 2014, 09:37 PM Reply Like
  • sid18
    , contributor
    Comments (380) | Send Message
    I really want it to go back to $8/share and stay there for a year so EBIX can finally buy back a huge chunk of the shares.
    14 Feb 2014, 09:36 PM Reply Like
  • llbarfield
    , contributor
    Comments (3) | Send Message
    Where does this news feed come from?? Do not see anywhere else.
    15 Feb 2014, 05:40 AM Reply Like
  • Brandond
    , contributor
    Comments (492) | Send Message
    Very long on Ebix and the open suits is the reason why Ebix has a multiple of about 50% of their peers. I understand why the other matters remain open (the SEC takes their time in these matters) but I cannot understand why they don't make best efforts to settle with Microsoft and pay MSFT any royalties owed. I'm not overly troubled by this latest news as lots of public companies have legal open matters but watch for one of these anonymous "writers" to come out with some new "research" saying Ebix is worth $0 trying to shake weak hands.
    15 Feb 2014, 09:05 AM Reply Like
  • newnnly
    , contributor
    Comments (325) | Send Message
    Everyone get ready for another fear mongering Gotham piece. Anyone besides me notice that after the last Gotham piece MSN stopped putting SA articles on their site? Perhaps I'm mistaken and would appreciate any input.
    15 Feb 2014, 10:57 AM Reply Like
    , contributor
    Comments (7) | Send Message
    15 Feb 2014, 02:22 PM Reply Like
  • User 6428051
    , contributor
    Comments (2) | Send Message
    I am long on ebix.


    Brandon, the original motion to dismiss (the one that filed 07/10/13) is available here:


    Reading claims the claims ebix make there I think that ebix doesn't run to pay the royalties because it really believe it doesn't own them.


    (I couldn't find the amended motion to dismiss filed 08/29/2013 nor Microsoft's responses, I'd be pleased if any one who know where I can find them will refer me)


    Few citations, (I urge you to read the original):


    License Agreement grants Ebix the right to run copies of Microsoft’s software, and
    to later submit orders and payment for those copies to an authorized reseller who
    determines price and other payment terms
    "Though Microsoft and Ebix
    discussed the manner in which the audit would be conducted, an audit did not
    occur, and Microsoft filed this lawsuit."
    "In conclusion, Ebix’s alleged failure to pay in full for licenses under the
    License Agreement may, at most, subject it to liability for the damages provided
    for in the agreement. It does not, as shown above, amount to the failure of a
    condition to the License Agreement. Ebix remains, therefore, a licensee of
    Microsoft’s software regardless of any failure of payment, and any copying of that
    software cannot subject Ebix to copyright liability. It is not only improbable, but
    impossible, that Microsoft’s allegations state a claim for copyright infringement.
    Accordingly, Microsoft’s claim should be dismissed, with prejudice, pursuant to
    Federal Rule of Civil Procedure 12(b)(6)."
    18 Feb 2014, 07:49 AM Reply Like
  • User 6428051
    , contributor
    Comments (2) | Send Message
    * Wrote "own" meant "owe"...
    18 Feb 2014, 08:35 AM Reply Like
  • Brandond
    , contributor
    Comments (492) | Send Message
    Picked this up on Stocktwits: good Forbes article today

    19 Feb 2014, 12:59 PM Reply Like
  • Brandond
    , contributor
    Comments (492) | Send Message
    As we all suspected, Gotham publishing more false allegations. Fool me once...


    Looks like the Street has wised up to this BS: large funds buying today's dip for big long term gains
    21 Feb 2014, 02:48 PM Reply Like
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