An Orange County, California-based software company specializing in database management filed a lawsuit against Nike Tuesday for breach of license agreements and copyright infringement.
Quest Software alleges that Nike used pirated keys to bypass the company's security measures and made unauthorized copies of its programs.
The relationship between the two parties began in November 2001, when Nike signed what's known in the industry as a software license agreement (SLA). The contract limited which licenses and versions of the software the Swoosh was able to access.
Rather than negotiate a new arrangement, Quest alleges that Nike took matters into its own hands. After conducting an audit in January 2017, the software company discovered Nike had used its products "far in excess" of what was outlined in the SLA.
"Despite further communications between the parties, Nike has refused to purchase the additional licenses necessary to bring its deployments of the Quest Software Products into compliance with the parties’ SLA," reads the filing.
In addition to claims of breach of the SLA and copyright infringement, Quest says Nike also violated the Digital Millennium Copyright Act.
The software company is now calling for an injunction to prevent Nike from continuing to use the pirated software. It's also seeking a monetary award for damages and court fees.
