A press release by FaceTime stated that according to the court, Thomson Reuters must cease use of FaceTime technology effective August 1, 2008. Since 2006, FaceTime technology has been used in a component of the Reuters Messaging Network that provides instant messaging compliance for its financial customers.

Many financial institutions rely on the Reuters Messaging Compliance Manager to ensure compliance with SEC and Sarbanes-Oxley regulations for logging, archiving and retrieval of electronic communications regarding financial transactions.

Reuters has not renewed its license with FaceTime following its expiration on January 31, 2008. After efforts to renegotiate the contract failed, FaceTime filed suit against Reuters to protect its Intellectual Property Rights.

"While we are pleased that FaceTime's Intellectual Property Rights are protected, we are concerned about Reuters' timetable for installing replacement technology in light of its representations to the court as to its ability to provide adequate compliance protection for its customers," said Kailash Ambwani, president and CEO of FaceTime Communications.

Concern over timing of the technology change is based on Reuters' representations to the court in the lawsuit. Reuters' pleadings, filed earlier this month, state:

“24. If Thomson Reuters were suddenly unable to make use of the Reuters Messaging compliance product, Thomson Reuters' customers would be crippled in their day-to-day business operations…

25. There is no practical immediate substitute for the Reuters Messaging compliance product in the event of any disruption. Any development of a suitable replacement (and complete transition of existing customers to the new product) would take several months (and would involve tremendous expenditure of money and labor) for Thomson Reuters to convert to an alternative product …"

(Decl.of Eran Barak, pp. 6-7; 1:08-cv-4730-CM Document 19)

July 29th final judgment declares:

“1. The parties' Source Code Licensing Agreement terminated effective February 1, 2008.

2. Effective February 1, 2008, Reuters cease[d] to be authorized to "copy, use, distribute or sublicense the Licensed Material or the Derivative Works" (i.e., works created by Reuters that incorporate or rely on the Licensed Material) to customers ("End Users").

3. The contractually permitted "grace period" for continuing use of the Licensed Material and/or Derivative Works incorporating the Licensed Material by End Users holding existing sublicenses expires on July 31, 2008, pursuant to Section 8.4.2 of the Agreement."

FaceTime Communications enables the safe and productive use of instant messaging, Web usage and Unified Communications platforms.

Source: ag-IP News