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
With short-term interest rates at 7 percent,
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 projected
annual sales of $7 million per year for three years. My sales forecasts were right on target."
Do you know why Ralph was fired?1
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