Reuters loses right to use crucial IM technology

Logo ReutersThomson Reuters Corp. must remove a crucial layer of software from its instant messaging service beginning Friday under a federal court order that threatens to disrupt communications within dozens of stock brokerages and banks.

The decision issued Tuesday by U.S. District Judge Colleen McMahon penalized Thomson Reuters for being two weeks late with its final licensing payment to Silicon Valley software maker FaceTime Communications Inc.

Reuters, the news and information service bought by Thomson Financial earlier this year, stitched FaceTime's computer coding into an instant messaging service that has been sold to about 100 customers in the financial services industry.

FaceTime's technology provides Reuters' instant messaging customers with two vital features ??” security against computer hackers and tools to comply with a variety of government regulations that include a mandate to store the electronic conversations of securities traders and brokers.

The decision won't affect banks and brokers that independently license FaceTime's tools for their internal instant messaging systems.

The FaceTime elements are so important to Thomson Reuters that a company executive, Eran Barak, warned in a July 1 declaration that losing the technology would have a "devastating impact on customer satisfaction and customer goodwill."

Barak, Thomson Reuters' head of strategy and collaboration services, estimated the New York-based company's 2009 revenue could decline by millions of dollars if disillusioned customers seek other instant messaging alternatives. He also indicated switching might not be easy, warning some instant messaging users "would be crippled in their day-to-day operations" without access to FaceTime's protections.

Messages left late Tuesday with a Thomson Reuters spokesman and attorney weren't immediately returned. FaceTime remains willing to negotiate a new licensing agreement with Thomson Reuters, said Jim Obrien, the Belmont-based company's general counsel.

Although Reuters' instant messaging would still be able to relay electronic conversations without FaceTime's technology, the service probably couldn't be used by many brokers and banks without the security and compliance tools.

McMahon, a New York federal judge, showed little sympathy for Reuters in what she called an "open-and-shut case."

After paying $1.3 million to FaceTime as part of a two-year contract, Reuters could have nailed down the permanent right to use the software by making a $150,000 payment by Jan. 31 this year, according to McMahon's decision.

But Reuters didn't wire the funds until Feb. 15 ??” two days after FaceTime's Obrien sent a letter notifying the company that the previous deal had expired.

Source: Yahoo

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Is this an error or it is really happening?
 
 
The proposed topic and architecture was originally presented to the JPEG Committee in 2016
 
 
The rest of the specs as seen on Geekbench include 8GB of RAM
 
Samsung is likely to be made official in February at next year's Mobile World Congress in Barcelona
 
Lumia 950 XL shown running Windows 10 on ARM
 
The company has studied such an option in the past
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
  12345
6789101112
13141516171819
20212223242526
2728293031  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)