Software company finds itself in the middle of an antitrust lawsuit over patents
- by admin
RADIOLOGY software companies were the targets of an intense investigation by a federal grand jury on Wednesday, with the firm’s CEO filing a $1.6 billion antitrust complaint against a number of the world’s biggest companies.
In the complaint, Radiologic founder Richard Kline accuses Oracle of conspiring with the American Civil Liberties Union (ACLU) and the Recording Industry Association of America (RIAA) to “intimidate, threaten, and disrupt” the company.
The complaint says Oracle and its subsidiaries “have systematically and repeatedly discriminated against Plaintiffs in the marketplace, including, without limitation, by denying Plaintiffs access to the source code of their software, by threatening and discouraging Plaintiffs from distributing their software and by engaging in other anticompetitive acts.”
Kline, who was named in the complaint as co-defendant, says the complaint is the largest antitrust lawsuit filed by an American software company.
It is not immediately clear what Kline plans to do with the company’s case, which could be settled.
Oracle declined to comment.
The RIAA and the ACLU did not immediately respond to a request for comment.
The FTC says it is reviewing the complaint.
Oracle did not respond to requests for comment on Wednesday.
The Justice Department said the case is “about anticompetition law, unfair business practices, and an alleged conspiracy between Radiology and the defendants.”
Oracle said in a statement that the complaint “is not the first or even the third time Radiological has been the subject of an investigation by the FTC.”
In 2013, the FTC launched an investigation into Radiologic, accusing it of selling a patent that was used in a wide range of products, including a software application.
The company denied any wrongdoing.
Radiologists have a license to the Radiograph software, which is used to make the images of CT scans.
In a response to the investigation, RadioLogic argued that the patent was in the public domain, which meant that it could not be patented.
The company said the patent could be used for “many legitimate uses, including commercial, academic, scientific, or governmental purposes.”
Radiologic has denied any involvement in the patent.
The case will be presented to a federal judge in San Francisco, California.
The FBI is conducting a parallel investigation, which the DOJ said could result in a penalty of up to $250 million.
RADIOLOGY software companies were the targets of an intense investigation by a federal grand jury on Wednesday, with the firm’s…
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