It was a case of David against Goliath with Goliath having the upper hand now a full-court press by US technology company Fidelity National has forced Wellington software developer Montoux Ltd into a corner over disputed allegations of copyright infringement and misuse of confidential information.
Fidelity’s annual revenue tops USD ten billion; Montoux’s NZD 2.7 million.
The New Zealand High Court imposed an interim injunction blocking Montoux’s promotion and sale of its specialist software used to price insurance risks, ruling while it is debateable whether Montoux has copied Fidelity National’s product, a related dispute over allegations that Montoux misused confidential information justifies calling a temporary halt on promotion of Montoux’s actuarial software.
Whether Montoux acted improperly has yet to be decided.
Justice Gendall declined to order a priority hearing date for a full trial, allowing only that an ‘early’ hearing date be allocated.
Delays in getting a court hearing date allows Fidelity National to win by default; Montoux is kept out of the market while Fidelity is free to respond to threats it perceives from Montoux’s rival product.
At time of Fidelity National’s legal challenge, Montoux had operating subsidiaries in Australia, USA and UK.
Fidelity National provides back-office support for the insurance, finance and healthcare sectors with transaction processing, record keeping and data analytics. Its proprietary ‘prophet’ software has some 10,000 users world-wide.
The High Court was told Montoux began offering actuarial modelling software in 2016. Three years later its set out to design a more open system, taking a view the prophet product in use had too many limitations and was not sufficiently user friendly. By 2022, clients were being migrated to Montoux’s new platform and further customers acquired, including Amazon Web Services.
With no warning, Montoux’s US subsidiary was hit in 2024 with a Fidelity National breach of copyright court action. Montoux says there was no prior ‘cease and desist’ demand and no prior offer of commercial discussions.
In New Zealand, Montoux director Klaas Stijnen claimed in the High Court that Montoux’s product is based on independent technologies; there has been no breach of copyright, he says.
Montoux claims what Fidelity National says is its proprietary source code are simply variables included in the software package; mathematical formulae, part of any standard actuarial calculation, that are not subject to copyright.
Justice Gendall commented the technical nature of this evidence made any interim decision ‘somewhat difficult.’ No decision could be made on breach of copyright at this initial stage, he said. Further evidence is needed.
Justice Gendall ruled that a more pressing legal question was potential misuse of confidential information obtained by Montoux interacting with Fidelity National customers then using customer feedback to build competing software.
In court, Montoux complained Fidelity National is using a vague breach of confidence claim as a weapon; part of a strategy of harassment and oppression, it claims.
Terms of the interim injunction, pending a full trial, block Montoux from promoting or using its rival software, despite no definitive proof to date that its product is in breach of Fidelity National’s claimed copyright.
In the High Court, Justice Gendall commented that Fidelity National has not properly clarified what part of the ‘prophet’ code Montoux has allegedly copied.
Montoux Ltd is in liquidation, with its liquidator contesting Fidelity National’s claims.
Fidelity National Information Systems Inc v. Montoux Ltd – High Court (29.08.25)
25.190