Context of 'November 15, 1985: Justice Department Makes Counterproposal for Settlement of PROMIS Dispute'

The Justice Department makes a counter-proposal in the dispute over whether Inslaw should provide an enhanced version of the PROMIS software and documentation to the department to ensure against the company’s bankruptcy (see December 6, 1982). The counter-proposal is made in a letter from Peter Videnieks, the department’s contracting officer, to Harvey Sherzer, an attorney for Inslaw. Videnieks still wants a copy of the enhanced PROMIS software, but is willing to limit the software’s dissemination to the attorneys’ offices contemplated by the original contract. However, the department does not admit that Inslaw has made privately-funded enhancements to the software, so this limitation on dissemination will only apply if Inslaw can demonstrate the privately-funded enhancements that it claims have actually been made. Nevertheless, no mechanism for producing such proof will be specified. If Inslaw can show the software contains such enhancements, the department will either tell it to remove them, or negotiate regarding inclusion of the enhancements. [US Congress, 9/10/1992]

The Justice Department makes a counterproposal in the dispute with Inslaw over rights to an enhanced version of the PROMIS software. The principles of the settlement, set out by the Justice Management Division’s general counsel Janice A. Sposato in a letter to Inslaw lawyer Harvey Sherzer, are:
The department will not pay Inslaw any additional money for the enhanced software obtained under a contract on implementation of PROMIS at US attorneys’ offices;
Inslaw will recognize that the US government has the right to unrestricted use of the enhanced software obtained under the contract for any federal project, including projects implemented by independent contractors;
The department will agree not to make or permit any disclosure or distribution of the software other than as described above, or as required by federal law.
Inslaw will not accept the counterproposal, and the dispute will continue. [US Congress, 9/10/1992]

The Bankruptcy Court for the District of Columbia awards $8 million in damages to Inslaw in the dispute over the Justice Department’s use of the enhanced PROMIS software. The decision follows on from a ruling by the court that the department had violated Inslaw’s automatic stay bankruptcy protection rights by using and copying an enhanced version of Inslaw’s PROMIS software (see September 28, 1987). The award consists of $6.8 million in actual and punitive damages, as well as $1.2 million in attorneys’ fees. [US Congress, 9/10/1992]