- 23 - right to transfer the software load in conjunction with a transfer of the digital switch without NTI's consent. Respondent attempts to characterize that right as a “right without substance” because any new owner of the digital switch would have to acquire a new software load, unless the switch was used in the same location. That condition, however, appears relatively unrestrictive in light of Sprint's trade of approximately 30 similar digital switches with ConTel Co., in the late 1980s, which resulted in none of the switches actually changing location. Lastly, the Sprint/NTI agreement provided that the risk of loss with respect to the digital switch, including the NTI software load, would pass to petitioner upon delivery. Respondent points to certain provisions in the Sprint/NTI agreement as evidence that the benefits and burdens of ownership did not pass from NTI to petitioner. In particular, respondent focuses on certain provisions in the Sprint/NTI agreement that provide that the software transferred with the digital switch manufactured by NTI was to be treated as the exclusive property and trade secret of NTI and that petitioner was under certain obligations to protect NTI’s interest in the software. The provisions of the Sprint/NTI agreement cited by respondent all relate to NTI’s interest in the intellectual property underlying the NTI software load. Those provisions protect, reinforce, and extend NTI’s intellectual property rights in that software. NTI’s retention of those rights is consistent with the conclusionPage: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011