Breaking Down Software John Doe Lawsuits: What Engineers, Tech Professionals, and Attorneys Need to Know

Each year, large software publishers file copyright lawsuits targeting hundreds of anonymous “John Doe” defendants for alleged unlicensed use of their enterprise software. These lawsuits threaten disruption and potentially severe financial consequences.

Software publishers use detection tools that can identify unauthorized installations and track usage patterns. These tools collect data like IP (internet protocol) addresses, installation dates, and usage frequency. Based on their findings, the companies then file lawsuits in federal courts in Texas and elsewhere to unmask the infringers’ identities.

These anti-piracy cases impact professionals and companies across many industries. While some cases may involve legitimate claims, others ensnare innocent subscribers or stem from misunderstandings and oversights.

This article outlines what engineers, designers, tech professionals, and attorneys need to know.

The Software at Issue

These cases typically involve high-value enterprise software used in engineering, design, and technical fields. For example, Siemens files lawsuits relating to its Product Lifecycle Management (PLM) suite includes NX for CAD/CAM, Solid Edge for 3D prototyping, and Star CCM for engineering simulation. Ansys's portfolio includes Ansys Electronics Enterprise, Ansys Fluent, and Ansys Mechanical for engineering simulation and analysis

Programs like these aren’t consumer products; they’re advanced tools used by professionals in engineering, design, and simulation-intensive fields, with licenses often costing tens of thousands of dollars per seat. Impacted industries include:

• Automotive engineering
• Aerospace design and testing
• Industrial machinery design
• Consumer product development
• Electronics manufacturing
• Medical device design
• Robotics engineering
• Construction and infrastructure

‍How This Kind of Litigation Works

These cases follow a distinct pattern that creates unique challenges. The software publisher tracks unauthorized use of its software through IP addresses. It then files suit against unnamed "John Doe" defendants and obtains court authorization to issues subpoenas to ISPs(internet service providers) like Comcast and Charter for subscriber information.

The ISPs then notify their customers that their identities will be disclosed unless they challenge the subpoena within a specified period of time. These customers have the option of filing a motion to quash to keep their identities hidden. While every case is different, it should be noted that overcoming these subpoenas and preventing disclosure can be tough.

Following disclosure, unless the parties reach a resolution, the plaintiff will amend its complaint to name specific persons as defendants. It may then proceed with discovery and litigation against the named persons.

The Stakes for Professionals and Companies

The potential ramifications of a software copyright case are significant. Under U.S. copyright law, a plaintiff can seek either lost profits or statutory damages of up to $150,000 per infringed work for willful infringement, plus other remedies including attorney's fees and injunctive relief.

Beyond copyright damages, some companies pursue claims for circumvention of technological protection measures under the Digital Millennium Copyright Act (DMCA), which can result in additional statutory damages.

Companies risk legal exposure when employees exceed license limits or use unauthorized copies of proprietary software. Remote work has further blurred the line between corporate and personal access, creating new challenges for companies to manage and monitor software use.

Individual defendants face a double threat. Even those who believe they were authorized through their employer may find themselves exposed to personal liability. Beyond financial liability, public identification can have adverse professional consequences.

Potential Defenses in a Software Copyright Case

Several scenarios may give rise to defenses that eliminate or mitigate liability for alleged software copyright infringement:

• ‍Misidentification: Some cases target the wrong party due to shared networks or other errors.‍
• Unwitting Download: In some cases, software was installed through malware or compromised networks.‍
• Unauthorized Actions: Employees sometimes install software without employer knowledge (or vice versa).‍
• Existing Licenses: Defendants may already be covered by a valid license for multiple users, versions, or legacy software.‍
• De Minimis Use: Some defendants may argue their use was so minor that it does not constitute copyright infringement.‍
• Experimentation: Some can show their use was limited to personal experimentation, research, or interoperability testing.

This list is by no means exhaustive. The strength of each potential defense should be carefully vetted to determine the optimal litigation or settlement strategy.

Strategic Considerations

Your strategy should be tailored to the circumstances—considering, for example, whether the alleged use is commercial or non-commercial, whether there may be shared liability between employer and employee, and the availability of any valid defenses and the strength of the evidence supporting them. These and other factors can greatly affect the outcome. Obviously the best-case scenario is where you can affirmatively prove you never accessed or used the software at all, though things are rarely that clearcut.

In certain cases, the best path forward is to litigate the case and potentially take it to trial. But in most cases involving end users, early resolution will make sense for both sides. Even if the plaintiff has you dead to rights, its initial demand will often be negotiable. Moreover, unlike some plaintiffs, software companies may view defendants as potential customers rather than simply as targets for quick payouts. This can potentially open up creative settlement opportunities.

Do These Things Right Away

If you receive a subpoena notice from your ISP or otherwise find out you've been sued for alleged copyright infringement, immediate action is crucial. Key steps include:

• Preserving any and all potentially relevant digital and other evidence
• Documenting how and why the software was accessed or used
• Gathering evidence of any valid licenses and payments
• Identifying anyone who had access to relevant devices or IP addresses
• Consulting with a copyright attorney experienced in software cases

Given the high stakes, complex issues, and potential for public exposure, software copyright cases should not be taken lightly. A thorough case assessment and informed gameplan are essential for navigating these cases successfully. With the right preparation and strategy, you can work toward a resolution that makes sense for your situation.

Maxwell Goss represents clients in copyright and other intellectual property cases in Michigan and nationwide.