Introduction

You may have recently received a letter from a Texas law firm of Daniels and Trednick. This company has a strong presence in handling software piracy cases. GibbsCam is one of the products they enforce as far as intellectual property rights are concerned. Their demands in software infringement cases can be very high, often due to the expensive nature of the software at issue (Ansys, Siemens are other expensive products that surface in software piracy cases). If you received a demand letter or cease and desist notice, contact us BEFORE you ever think about responding directly and without a lawyer. Once you reach out, you may cement your position that you can never later retract. This blog discusses GibbsCam.

Attorney Steve® Software Litigation Tip: I searched the federal court docket and did NOT see any instances of GibbsCam suing anyone in federal court for copyright infringement. However, if you search "Cimatron Gibbs" (see below) there are two cases popping up.

Who is GibbsCam?

According to the GibbsCam website:

"GibbsCAM is a cutting-edge CAM system for programming CNC machine tools. GibbsCAM has the power and flexibility to let you make parts the way you want. With its shop-friendly interface that is easy to navigate, you'll maximize productivity. Whether CNC programmer, machinist or manufacturing engineer, the user will find familiar terminology. Icons will make sense. Processes will be logical. With GibbsCAM, CNC programming is flexible, fast, reliable, and efficient."

What products do they offer?

Here are a few products I found on their website (check website for current offerings):

• GO Milling
• GO Tuning
• GO MTM
• GO Swiss
• GO 5-axis
• GO Wire EDM

They have a partner component with Solidworks

I noticed there was a connection with Solidworks and their software. The Solidworks website touts their tool:

"GibbsCAM's solid-based modules including 2.5D Solids, SolidSurfacer, and Advanced 3D for high-speed machining can directly open and machine native SOLIDWORKS solid models files. A custom add-in for SOLIDWORKS allows part files to be transferred directly to GibbsCAM from within the SOLIDWORKS session with a single menu selection."

General overview of their pricing (check current prices as this may not be accurate):

From what I can tell, GibbsCAM software pricing varies depending on the specific modules and features, but a basic package may start around $4,500 with annual maintenance fees of $550, and more advanced features can push the price up significantly. Their attorney told me 60k is a realistic figure for their more advanced software.

Here's a more detailed (potential) breakdown:

Basic Package: A basic GibbsCAM package, suitable for many users, starts around $4,500.

Annual Maintenance: You'll need to factor in annual maintenance fees, which are around $550 per year.

Advanced Features: If you need more advanced features like 3D or 5-axis machining, the cost can increase considerably, including $25,000 or more.

Student License: A Gibbscam student license is available for $100.

GO Milling and GO Turning: Check current pricing.

Prosoftstore: Prosoftstore also sells GibbsCAM software.

SouthernCAM: SouthernCAM offers GibbsCAM demos and information.

What to do if you get a legal demand letter from GibbsCam or their copyright lawyers

First off, do not panic. Do not throw your computers into the San Francisco Bay. Stay calm and lawyer up. Many times there can be significant monetary demands and extremely large legal exposures for companies using unlicensed software. Call us to discuss your case in confidence. Since 2004, Vondran Legal® has handled over 1,000 copyright infringement matters. It is doubtful any other firm can tout this amount (except perhaps Strike Three Holdings, which has sued thousands of people for illegal downloads of their adult movies). Call us to discuss. We will have you preserve the evidence until the case is resolved, usually with a monetary settlement that can range from thousands to many thousands depending on the usage at issue and other factors such as the financial position of the targeted company.

Does GibbsCam file lawsuits for infringement?

Yes, a recent search of the federal court docket identified two software piracy cases against alleged infringers.

Sample allegations in their civil copyright infringement lawsuits - two recent cases filed in Texas federal court.

Here are a few allegations they are making in their Texas federal court lawsuit:

The complaint was filed by DANIELS & TREDENNICK PLLC 6363 Woodway, Suite 700 Houston, Texas 77057.

• GibbsCAM is in the business of developing innovative solutions for manufacturing, toolmaking and CNC programming applications in the automotive, aerospace, consumer electronics, toys, medical, optics and telecom industries. Among the software programs developed and licensed by GibbsCAM in connection with its business is software known simply as GibbsCAM, a cutting-edge computer-aided manufacturing (“CAM”) system for programming CNC machine tools that can drive CNC milling, turning, mill-turn or wire EDM machines performing 2-axis turning and 2.5 axis milling, to 3-, 4- and 5-axis simultaneous and the most complex multi-spindle, multi-turret, multi-tasking and Swiss-style MTM machines. GibbsCAM is world renowned.
• GibbsCAM generally sells perpetual licenses and maintenance subscriptions to GibbsCAM Software. As long as a maintenance subscription is maintained, the customer has access to and may download updates and subsequent versions of the GibbsCAM Software, as well as associated user documentation.
• To purchase a license to GibbsCAM Software, a customer must issue a purchase order to GibbsCAM or to an authorized reseller or sign an agreement. To download GibbsCAM Software from GibbsCAM, a customer must log in through their GibbsCAM account. Once GibbsCAM has obtained a signed contract or payment from the customer, the customer can log in to the customer portal and download the executable files for the licensed GibbsCAM software.
• Once GibbsCAM has obtained a signed contract or payment from the customer, in a separate email or through a download from the customer portal, GibbsCAM sends the customer a license key for the customer's copy of the purchased GibbsCAM software. The license key is readable by the licensing tools that are integrated directly into the GibbsCAM Software and facilitates GibbsCAM Software license compliance for its products.
• When a user installs an GibbsCAM software program, and specifically when the user runs the executable files associated with the setup of an GibbsCAM software program, a local copy of the GibbsCAM software (the usable, object code version thereof) is created on the user's machine.
• To reduce the use of illegally copied software, software providers, including GibbsCAM, implement license verification technology that will prevent the software from functioning unless the user has legally purchased a license. This license verification technology may be a software mechanism or a physical mechanism attached to a single computer. The license verification technology may be in the form of either a license key (i.e., a series of numbers and letters sometimes stored in a computer file) that a user types in or that the software reads from a file during the software installation or launch process, or a hardware device, where the software will only operate correctly when the hardware device is attached to the computer executing the software. The license verification technology and the license key are provided by the software provider to the buyer when the software is purchased legally. Users who have not made a legitimate purchase of a software license will not have access to the license key or hardware device provided by the software provider, and therefore the software will not function properly.
• Software hackers reverse engineer the technological measures used to control access to the software and then provide processes and utilities to bypass the license verification technology, thus allowing unauthorized use of the software. The hackers' processes and utilities mimic the license verification technology (e.g., keys, hardware devices, etc.) and allow pirated software to function as fully as legally purchased software. Software utilities that mimic the license verification technology are often referred to as “cracked” licenses. Software hackers may also create hacked versions of the software such that a license is not needed during installation.
• Sophisticated websites exist where illegally obtained software, the software utilities that mimic the license verification technology, and hacked versions of the software may be downloaded and installed by those who do not want to pay for properly licensed software. Each hacked version of the software represents a lost sale and/or license for the company that owns the software and for resellers of the software (who may provide hardware installation and support, and software configuration, customization, and maintenance).
• Software that has been hacked or modified to use a cracked license may also contain malware that can damage computer systems, and/or infiltrate the computer network and the data on the network. Software that has been hacked also may not operate properly, negatively impacting the reputation of the software company that now has no oversight or control over the quality of the hacked versions of its software in use or the products produced by that software.
• Pirated versions of the GibbsCAM Software cannot be downloaded and installed accidentally or innocently. Rather, downloading and installing pirated GibbsCAM Software is a multi-step process that requires willful and deliberate action to circumvent technological measures that are put in place to deter and detect such conduct.
• Piracy Detection and Reporting Security Software (“PDRSS”) exists to identify instances of pirated software in use and provides the identity and location of organizations utilizing the pirated software to the software providers. Identification of pirated software allows the software providers to take legal action against intentional software piracy, notifying organizations and individuals of the illegal use of the software (and the potential malware problems that can accompany pirated software), and sell valid software licenses in the place of the previously illegally obtained software programs to recoup lost sales. GibbsCAM identifies pirated software.
• in use through PDRSS which, along with the license verification technology, is a component of the technological measures used to control access to the software. Software providers, such as GibbsCAM, embed the PDRSS within their software, validate the patterns and thresholds will trigger on pirated software.
• Data reported from the embedded PDRSS generates a report that identifies, among other things, the software that has been pirated and the organizations utilizing the pirated software. Through the technological measures used to control access to the software, GibbsCAM collects this identifying information to determine when pirated and unlicensed versions of its GibbsCAM Software are being utilized.
• GibbsCAM collects a large volume of data through the use of PDRSS that must be reviewed, analyzed, and investigated to determine and confirm the source of the infringement. Through review, analysis, and investigation of the PDRSS data (which included a list of specific IP addresses for each unauthorized installation, use, and reproduction), GibbsCAM discovered that Defendants used unlicensed and pirated GibbsCAM Software.
• Defendant Hale committed direct copyright infringement and DMCA violations when he downloaded pirated GibbsCAM Software, circumvented technological measures protecting the software, and used the unlicensed GibbsCAM Software in Defendant TWC's business. Defendant TWC committed vicarious and contributory copyright infringement and was unjustly enriched by Hale's use of pirated GibbsCAM Software for its benefit.

The full range of copyright infringement damages are being sought.

Attorney Steve® software piracy licensing tip: GibbsCAM software can be very expensive 50k or more). Demand letters should be taken seriously. Many companies accused of software piracy are willing to try to ignore their legal demands, hoping a lawsuit will not be filed. As you can see, this is a risky approach. Once you get into federal litigation, you need to hire a copyright law firm to represent your company, and you then risk paying their other parties attorney fees if you lose the case. Many times, it makes most sense to reach a reasonable out-of-court settlement.