- 111 -
information. Thus, the installation process, including the
interfacing of SBS with Norwest's existing deposit and credit
modules and other systems, and the subsequent testing, was critical
to the success of SBS. This was all part of the research process.
It was far from routine. Mr. Teixeira, in a book published in
1990, indicated that installation and conversion of large
integrated software systems like SBS "can be risky".
We agree with respondent, however, that customization
activities relating to SBS by Norwest after delivery by EDS that
were unrelated to the installation and interfacing activities are
not qualified research as those activities relate only to style,
taste, cosmetic, or seasonal design factors. See sec. 41(d)(3)(B).
We also agree with respondent that any activities performed by
Norwest after the first SBS release was installed at each bank is
not qualified research. Section 41(d)(4)(A) excludes from
qualified research any research conducted after the beginning of
commercial production of the business component. Although Congress
anticipated that some postproduction activities, including internal
use software activities after the installation of commercially
available software, could be treated as qualified research, H.
Conf. Rept. 99-841 (Vol. II), at II-73, II-74 n.4 (1986), 1986-3
C.B. (Vol. 4) 1, 73, 74 n.4, Norwest has not shown that the
subsequent releases of SBS by EDS involved qualified research by
EDS or Norwest, Rule 142(a).
Page: Previous 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 NextLast modified: May 25, 2011