Sperry Rand contracted with Industrial Supply Co. to supply Industrial with upgr

Question

Sperry Rand contracted with Industrial Supply Co. to supply Industrial with upgraded computers and inventory control systems. An employee of Sperry Rand spent several days at the Industrial facility to better understand their processes and design the inventory control system to Industrial’s needs. Actually, the Sperry Rand employee copied existing software already produced by Codex, Inc., and Industrial was found liable for infringing Codex’s software patent. Which of the following is true regarding Sperry Rand and Industrial?

Industrial is not liable to Sperry Rand because Industrial breached its implied warranty against infringement in giving Sperry Rand specific instructions regarding its software needs.

Sperry Rand is not liable to Industrial because Industrial received value in the transaction.

Sperry Rand is liable to Industrial because suppliers of computer equipment may be held strictly liable.

Sperry Rand is liable to Industrial because Sperry Rand breached its implied warranty against infringement in supplying Industrial with Codex’s software.

Explanation / Answer

The following is true regarding Sperry Rand and Industry:

Sperry Rand is liable to industry because Sperry Rand breached its implied warranty against infringement in supplying industrial with Codex’s software. Warranty of infringement is a warranty offer by the seller that the goods which being sold are not violating any trademark, patent, copyright and other intellectual property claims. Here the software was copied by the existing software which was patent software of Codex. So this is a breach of warranty against infringement by Sperry Rand.

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