In a textbook example of why it is important to carefully read and negotiate software license agreements, particularly those for mission-critical software applications, a robotic parking garage came to a grinding halt in Hoboken New Jersey last week, effectively imprisoning the several hundred cars that were parked there.

This situation had it all. The city was terminating its services contract with Robotic Parking, Inc. of Clearwater Florida, and intended to retain Israel based Unitronics to operate the garage (and hence Robotic’s software program). Robotics was not pleased, and claimed that such use was not permitted under the applicable license agreement.  It sued and sought a court order preventing the Israeli company from using and operating its proprietary software. The city got mad, and then got even, when it had the police escort all of the Robotic’s employees from the premises. Robotic got its revenge, when shortly after being kicked off the premises the software that runs the intricate maze of hoists, pulleys, lifts and dollies that ferry the cars to and from their cubby holes ceased operating.

Needless to say, the city made good friends with the people at Enterprise Rent-A-Car, while the battle moved to the courtroom. It has since been settled.

The lessons here are too numerous to list, but generally fall in the category of carefully considering and addressing every contingency when licensing mission-critical software. Of particular importance are the clauses addressing various termination events, and the scope of use clauses, to ensure that use by contractors and outsourcers is permitted.

Giant Robot Imprisons Parked Cars

GARAGE STANDOFF: Hoboken says firm 'hijacked' software

Photo courtesy of John Boyd under Creative Commons license (photo is not of the Hoboken garage).