FOR IMMEDIATE RELEASE
SCOTTS VALLEY, Calif.-March 9, 1995 -- The United States Court of Appeals for the First Circuit today reversed a District Court ruling that Quattro and Quattro Pro, spreadsheet products formerly developed and marketed by Borland International Inc., infringe the copyright of Lotus 1-2-3. Further lower court proceedings, which had been scheduled to begin Monday, March 13, will be canceled.
In written opinions, all three appellate judges held in favor of Borland, overturning previous decisions by the district court. The lower court had held that a single element of Borland's Quattro and Quattro Pro spreadsheets -- the menu command hierarchy -- infringed the copyright of Lotus 1-2-3.
In its opinion, the court concluded: "Because we hold that the Lotus menu command hierarchy is uncopyrightable subject matter, we further hold that Borland did not infringe the copyright by copying it."
"This is a clear victory for consumers, computer programmers and open systems, which will foster a more competitive software industry and promote innovation," said Philippe Kahn, chairman of Borland International.
"This decision removes a huge cloud of uncertainty from Borland and allows us to move forward with our business plans to develop and market world class software development tools," said Gary Wetsel, president of Borland.
"With this decision the First Circuit has established clear guidelines reflecting Congress' intent for what is and is not copyrightable in a computer program," said Robert Kohn, senior vice president of Corporate Affairs and general counsel for Borland. "This decision is consistent with rulings of other federal circuit courts and we are extremely pleased that the software industry now has a clear standard to follow."
Lotus v. Borland Background
In August 1992, the District Court ruled that an optional feature in Borland's spreadsheet products, called the Command Hierarchy, infringed the copyright of Lotus 1-2-3. Borland voluntarily removed this feature from shipping versions of the product following the decision. The court reaffirmed its decision in July 1993.
In August, 1993, the Federal District Court ruled that another compatibility feature in Quattro Pro and Quattro Pro for Windows infringed the copyright of Lotus 1-2-3. The court subsequently entered an injunction against Borland against further sales or distribution of then current versions of Borland's spreadsheet products. In response, Borland shipped new versions of Quattro Pro that did not include the features found to be infringing, and announced it would seek an immediate appeal.
Borland sold its Quattro Pro spreadsheet to Novell Inc. in March 1994. The case, which is nearly four years old, has attracted widespread attention from copyright experts, government agencies and computer users who have submitted "friend of the court" briefs.
About Borland
Borland International Inc. (NASDAQ:BORL) is a leading provider of products and services targeted to software developers. Borland is distinguished for its high-quality software development tools, which include Delphi, Borland C++, dBASE, and Paradox. Borland's award-winning products are supported through comprehensive programs for small- and large-sized software developers, corporate developers, value added resellers and systems integrators. Founded in 1983, Borland is headquartered in Scotts Valley, California.
Contact: