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* * * * * * *
The Licensee [HSN] shall pay to the Licensor [HSC] the
sum of 2% of its gross profits of which 1% of gross
profits shall be remitted to Pioneer Data, Inc. for its
development of the existing computer licenses,
programs, tapes. * * *
* * * * * * *
This agreement shall continue in perpetuity * * *
With its signal being broadcast to a national audience, HSN
believed that it would need a larger computer system to handle
the potentially large customer base. Time was of the essence in
locating a computer system, because the Satellite Agreement
required HSN to begin broadcasting on July 1, 1985. HSN and
Pioneer approached IBM and other computer hardware companies to
determine the type of computer system that would best suit HSN’s
needs. Burroughs was the company ultimately selected to provide
the computer hardware as a result of its ability to upgrade
computer hardware without extensive modification of computer
software, its willingness to have the order entry system
completed by July 1, 1985, its team approach, and its flexible
pricing.
On May 13, 1985, Pioneer and Burroughs entered into a
contract for the purchase of computer hardware and for Burroughs’
programming services to develop software, based upon the Local
Software but written in a fourth-generation computer language
known as LINC (the National Software), so that the program could
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Last modified: May 25, 2011