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Telecommunications service provider Continuant recently won a favorable ruling in its suit with business communications company Avaya. Continuant characterized the suit as an effort to restore consumer choice in the telecom market and eliminate a potential monopoly in the industry.
In its latest ruling in this 5-year-old case, the court denied Avaya's motions for summary judgment. Avaya had claims against Continuant that previously dismissed because the court ruled Continuant did not violate or circumvent two sections of the Digital Millennium Copyright Act when it accessed Avaya's software.
The Digital Millennium Copyright Act decreases the liability of online service providers whose users share copyrighted work. The act was mainly created to prevent the duplication of digitized works and make it more difficult to share copyrighted material over the internet, without putting a damper on internet-based businesses.
Companies like Continuant that face exposures related to the DMCA would be wise to invest in professional liability insurance, which can provide protection to tech companies faced with lawsuits regarding copyright and patent issues.