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LUC DEVROYE


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Adobe sues Linotype

In its 2007 quarterly holdings report, Monotype (Linotype) states that it was sued by Adobe. I quote: On October 30, 2006, Adobe Systems filed an action in the United States District Court of the Northern District of California against Linotype alleging that Linotype breached its obligations under agreements between Linotype and Adobe by failing to pay all royalties due under those agreements, submitting inaccurate royalty reports, and using the fonts licensed under those agreements improperly and without authorization. Adobe requests unspecified money damages, a declaratory judgment, costs and attorneys fees. On March 2, 2007, the court entered an order staying the action. The parties have moved jointly to extend the existing stay until November 15, 2007. We intend to vigorously contest the action. Monotype realizes though that it can't live without Adobe: f Hewlett-Packard or Adobe were to discontinue their use of our text imaging solutions in their products, our business could be materially and adversely affected. Because of their market position as industry leaders, the incorporation by Hewlett-Packard, or HP, of our text imaging solutions in its laser printers and the incorporation of our text imaging solutions by Adobe Systems, or Adobe, in its PostScript product promote widespread adoption of our technologies by manufacturers seeking to maintain compatibility with HP and Adobe. If HP or Adobe were to stop using our text imaging solutions in their products, the market acceptance of our technologies by other CE device manufacturers would be materially and adversely affected, and this would in turn adversely affect our revenue. So, Monotype finds itself in a tough position. As a minimum, they should pay Adobe all due royalties on fonts and become good corporate citizens.

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Luc Devroye ⦿ School of Computer Science ⦿ McGill University Montreal, Canada H3A 2K6 ⦿ lucdevroye@gmail.com ⦿ http://luc.devroye.org ⦿ http://luc.devroye.org/fonts.html