A1.docx - A1 On Tuesday software giant Amcott posted a year-end operating loss of $3.5 million Reportedly $1.7 million of the loss stemmed from its

A1.docx - A1 On Tuesday software giant Amcott posted a...

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A1 On Tuesday software giant Amcott posted a year-end operating loss of $3.5 million. Reportedly, $1.7 million of the loss stemmed from its foreign language division. At a time when Amcott was paying First National a hefty 7 percent rate to borrow short-term funds, Amcott decided to use $20 million of its retained earnings to purchase three-year rights to Magicword, a software package that converts generic word processor files saved as French text into English. First-year sales revenue from the software was $7 million, but thereafter sales were halted pending a copyright infringement suit filed by Foreign, Inc. Amcott lost the suit and paid damages of $1.7 million. Industry insiders say that the copyright violation pertained to “a very small component of Magicword.” Ralph, the Amcott manager who was fired over the incident, was quoted as saying, “I’m a scapegoat for the attorneys [at Amcott] who didn’t do their homework before buying the rights to Magicword. I
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