22 September 2017

Copyright: Otoy New Zealand v. Kozlov

Armed with a New Zealand court judgment identifying breach of copyright, US software company Otoy Inc is now on the hunt to break-up a pirate operation run by former employee, Russian software engineer Andrey Kozlov.
Mr Kozlov spent three years in New Zealand working for Otoy’s Auckland subsidiary before leaving for Russia in April 2015.  Otoy holds copyright in Octane software which runs on computer graphic processing units to create computer-generated pictures.  Its special feature enables manipulation of the way light refraction is rendered on screen.  Within a year of Mr Kozlov leaving, Otoy found software called FStormRender being offered online for free download.  Software settings and user interface mirrored Otoy’s Octane, including terminology in setting options unique to Octane.  Analysis of source code identified typographic errors also found in Octane’s code.  FStormRender’s code uses lower-case letters at the start of each setting dialogue; as did the second version of Octane Mr Kozlov was working on before leaving Otoy.
Justice Muir ruled it was a clear case of breach of copyright.  Source code is protected as a “literary work”.  Nominal damages only of one dollar was awarded.  Otoy did not have access to any of Mr Kozlov’s business records.  It could not assess if any revenue had been received.  FStormRender is marketed by Pinksoft SRO, a Russian company controlled by Mr Kozlov.  He was ordered to pay exemplary damages of $50,000 as punishment for what Justice Muir called a flagrant and calculated breach of copyright.  Otoy was authorised to seize any copies of FStormRender it could trace.  Otoy is also taking legal action in the Moscow City Court.    
Otoy New Zealand Ltd v. Kozlov – High Court (22.09.17)

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