Stopped in its Tracks: The Government’s Failure to Track Software Use Constitutes Infringement Under 28 U.S.C. § 1498
Client Alert | 1 min read | 03.09.21
In Bitmanagement Software GmbH v. United States, the Federal Circuit vacated and remanded a decision by the Court of Federal Claims (COFC) that found the Navy was not liable for copyright infringement even though it was undisputed that the Navy made 429,604 copies of Bitmanagement’s BS Contact Geo software when it only paid for 119 copies. The COFC reasoned that the Navy was not liable because it had an implied-in-fact license that permitted it to make copies. The Federal Circuit’s majority agreed the Navy had an implied-in-fact license, but that the COFC’s analysis should not have stopped there; rather, the COFC should have also considered whether the Navy complied with the terms of that implied license. The Navy did not. According to the Court, the implied license was conditioned on the Navy’s use of a license-tracking software at the time of copying to monitor usage by limiting the number of simultaneous users of Bitmanagement’s software. However, the Navy failed to use that license-tracking software. The Court held that the Navy’s copying outside of the scope of the implied license created liability for infringement. In a concurring opinion, Judge Newman reached the same conclusion; however, she disagreed as to the existence of an implied license, simply finding that the Navy’s “massive copying” infringed Bitmanagement’s copyright.
The case was remanded to the COFC for the calculation of a reasonable royalty for the Navy’s actual usage in excess of the licensed number of copies, which the burden is on the Government to prove.
Contacts
Insights
Client Alert | 4 min read | 02.20.26
SCOTUS Holds IEEPA Tariffs Unlawful
On February 20, 2026, the Supreme Court issued a pivotal ruling in Trump v. V.O.S. Selections, negating the President’s ability to impose tariffs under IEEPA. The case stemmed from President Trump’s invocation of IEEPA to levy tariffs on imports from Canada, Mexico, China, and other countries, citing national emergencies. Challengers argued—and the Court agreed—that IEEPA does not delegate tariff authority to the President. The power to tariff is vested in Congress by the Constitution and cannot be delegated to the President absent express authority from Congress.
Client Alert | 7 min read | 02.20.26
Section 5949 Proposed Rule Puts the FAR Council's Chips on the Table
Client Alert | 5 min read | 02.20.26
Trump Administration Pursues MFN Pricing for Prescription Drugs
Client Alert | 4 min read | 02.19.26
Proposed NY Legislation May Mean Potential Criminal Charges for Unlicensed Crypto Firms


