Veritec, the Minneapolis-based producer of the Vericode two dimensional barcode system, announced today that it had received notice from the International Court of Arbitration of an award in its arbitration dispute with Mitsubishi Corporation.
The arbitration panel dismissed all of Veritec’s claims against Mitsubishi arising out of a series of agreements dating back to the early 90’s. The panel awarded Mitsubishi approximately $8.1 million in compensatory damages, attorneys fees and costs based on findings that Veritec had breached a 1996 agreement between the parties and infringed a Mitsubishi copyright on its error detection and correction functionality software (EDAC).
EDAC is used in the Veritec’s software that writes and reads the Vericode symbol, a small, chessboard-like matrix capable of holding more than 500 bytes of data.. In addition, the arbitration panel enjoined Veritec from further violations of the Mitsubishi EDAC copyright.
“We are shocked and dismayed over the arbitration ruling,” said Veritec CEO, Van Tran. “Veritec does not currently have resources available to pay the cash portion of the arbitration award and will be considering all of its alternatives.
“We remain hopeful that we will be able to satisfy the award or reach an accommodation without significant adverse consequences to our business, but at this point we can have no assurance that this will be possible.”