Tuesday, August 31, 2021
Aye, Kalyptio, the places you've been to, The things that you've shown us, the stories you tell
The classics never die. Just rebooted with new names.
Thanks for your response and as requested, I'm providing a detailed explanation of what happened. My company “KALYPTIO INNOVACIÓN TECNOLÓGICA” has a license agreement with “Coupa Software Inc”, to translate, develop and distribute our Bar Code Reading software system (LCPPRO-LE64) in the United States. The Bar Code Reading devices are embedded or preloaded with our proprietary software coded in Spanish language but equipped with a Spanish to English language translator from our factory plants here in Mexico before being shipped to Coupa Software Inc.(Local Address Here)
However, as a result of increased market demand for our wholesale packaging supplies and wholesale shipping supplies in the US and to make our products compete more favorably with other products, there was the need to have the embedded software written in English language. It was considered that these will remove several inefficiencies as a result of translation from Spanish to English language. As a result of the foregoing, we entered into a copyright license agreement with "Coupa Software Inc". 401 2nd Ave, Suite #101 Seattle, WA 98104 United States., for the translation of our software programs from Spanish to English language for our wholesale packaging supplies and wholesale shipping supplies. As a result of the foregoing, we entered into a copyright license agreement with “Coupa Software Inc” in January 2018.
However, in July 2019 during a scheduled inspection tour by our auditor from Mexico to our client’s manufacturing facility in the US it was uncovered that “Coupa Software Inc”, was equally manufacturing the Chinese versions of our product without license. In addition, our client was equally distributing the unauthorized Chinese language versions of our products within and to outside the US which was a complete violation of our agreed terms.
Following the initial discovery by our audit consultant, another detailed investigation was carried out by an independent auditor and it was uncovered and confirmed by the independent auditors that 250,000 copies of the Chinese language version of the software programs have been produced and 200,000 shipped and sold already in the US and South America. Clearly our license agreement has been breached, after which we had a lengthy negotiation back and forth through our lawyers, and consequently it was mutually resolved and agreed that sixty-five percent (65%) earned profits on the unauthorized production which is of Three Million Eight Hundred and Eighty-Five Thousand Dollars Only ($3,885,000.00) should be payable to us and payment deadline of 30th of December, 2019 was agreed. However with this current economic climate, we can't afford to have $3,885,000.00 pending indefinitely with this customer. Previously, the settlement agreement deadline date was extended from December 2019 to 28th of March, 2020 as requested by “Coupa Software Inc” and it is quite unfortunate the extended deadline was not honored.
Despite the foregoing, I would like to draw your attention to the relationship with Coupa Software Inc, which has been cordial and we have had a successful business relationship over the past few years, and it is our position to maintain the relationship after settling the issues on hand. Right now, I will like to take appropriate steps and measures to enforce our copyright license agreement and/ or claim infringements and damages as appropriate. Our expectation of your services for now will be within the scenario of a Demand letter to them (Coupa Software Inc USA). This approach will trigger the much needed response from them towards amicable settlement of the matter and we are ready to go to litigation if they do not pay up.
Let me know when you would be able to take a call so we can discuss your retainer fees. I've attached the License and The Settlement Agreement between us and Coupa Software Inc USA as well. I look forward to your prompt response.
Roberto Sandoval
CEO, KALYPTIO INNOVACIÓN TECNOLÓGIC
www.kalyptionline.com
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Thanks for posting these! Our office just received a variation of this one with different business names (one being Bree Concept, whose website was created only 2 weeks ago).
ReplyDeleteThank you for email and I appreciate you wanting to refer us. I would provide you with a summary about my case for your review and if it is something your firm can handle then I would love to schedule a phone discussion with you this week.
ReplyDeleteWe are currently in contract agreement for the production of scanning chips and codes to be used for packaging and shipping of all sorts of general supplies and merchandise to customers in the US with a company known as HBS Systems.These chips and codes are embedded and preloaded with our proprietary software codes in Spanish but equipped with a language translator (Spanish to English) and are shipped to HBS Systems at their ground office - 3400 Waterview Parkway, Richardson, TX 75080
Our business relationship with HBS Systems improved and identifying the need to increase production, we opted to insert them with an English version of our proprietary software codes to avoid the delays that could arise from translation and inefficiencies there from. This triggered the signing of a Copyright License Agreement with HBS Systems that protects our intellectual property from being duplicated since all our codes had been simplified and provided in English.
In July 2021, we conducted a routine facility inspection by our auditors to a facility owned by HBS Systems and discovered production and distribution of the replica scanning chips and codes without our authorization which is a complete violation of our existing agreement. We also discovered a production of 2,000,000 replicas of the scanning chips was done and 450,000 sold.HBS Systems was contacted by a team from the office in Mexico and they admitted to the discovery of production of replicas and violation of our terms and agreement.
After negotiations due to the violation, we reached a settlement agreement of 58% of the proceeds from the unauthorized production amounting to Four Million Seven Hundred Thousand Dollars Only. ($ 4,700,000.00) and the agreed amount would be payable at the end of December 2021 and there was a signed agreement to this effect.Despite the existing relationship with HBS Systems which we wish to maintain, we have been unable to receive payment as agreed. I would appreciate it if you can inform, educate and guide through a peaceful process of receiving our settlement.
Our expectation of your services for now will be within the scenario of a Demand letter to HBS Systems. I believe that this approach will trigger a much-needed response/action from them in regards to an amicable settlement of the matter as well as remittance of what is due to my company.I am aware that a retainer will be charged for your services if you are interested in taking on this case. Kindly let me know your thoughts with the information I have shared concerning the case to know the next step to take.
I look forward to hearing from you.