A computer software company based in Park City has filed suit in U.S. District Court to enforce a contract that allows a California company to distribute its product.
Athena Software Corp. filed the action against MicroPro International Corp., based in San Rafael, Calif., saying that in February 1987, the two entered into a licensing agreement granting MicroPro an exclusive, worldwide, nontransferable license to sell one of Athena's computer programs, "Fill-a-Form." This software program was to be bundled with MicroPro's word-processing software, known as Wordstar, and other programs.The contract calls for minimum royalty payments of $10,000 per month. But in an Oct. 17, 1988, letter, MicroPro's corporate counsel wrote to Athena's president, Jan Collins, saying MicroPro had decided to discontinue the licensing agreement effective Nov. 1, 1988.
However, the section of the contract cited by MicroPro does not have a provision allowing the termination of the license by discontinuing payment. "No other provision of the contract gives MicroPro any such right," the suit says.
The suit asks for payment of the monthly minimum royalties for the remaining term of the contract, which was to last a total of five years.