SIEMENS INDUSTRY SOFTWARE INC. LAWSUITS

Siemens Industry Software Inc. (formerly known as Siemens Product Lifecycle Management Software, Inc.) lawsuits have been filed in federal courts since 2011.  The goal here is to keep up to date on this plaintiff, and to discuss their various cases.  Should you learn of any updates regarding one of their cases, please post it here using the following format — (e.g., “Siemens Industry Software Inc. v. Does 1-268 (Case No. 4:23-cv-00498) filed in the U.S. District Court for the Southern District of Texas).  Please also feel free to post new cases you find where Siemens Industry Software Inc. is listed as the plaintiff.

Siemens Industry Software Inc. v. Does Lawsuits

Siemens Industry Software Inc. has been known for suing John Doe Defendants across the US for the unauthorized use of their NX, Solid Edge, Star CCM, Femap, FloTHERM, Simcenter Testlab, and Jack software versions.  Recent lawsuits have expanded the software to include a mix of other copyrighted titles owned by Siemens Industry Software.  The lawsuits are all copyright infringement lawsuits filed in the Federal Courts, and each lawsuit sues for statutory damages of $150,000.

Remember to please exercise discretion when posting (e.g., do not post your real name or e-mail address), and as usual, avoid using vulgar or offensive language (both towards the plaintiff and towards other users).

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CASE HISTORY OF THE SIEMENS INDUSTRY SOFTWARE INC. CASES:

Siemens Industry Software Inc. (formerly known as “Siemens Product Lifecycle Management Software, Inc.” or “Siemens PLM Software”) has been filing lawsuits against John Doe Defendants in federal courts across the US since 2011. Their most recent lawsuit was filed in February, 2023.

In 2011, Siemens Industry Software Inc. started their lawsuits in New York (NYSD) with two innocuous cases containing 50 John Doe Defendants which spanned NX 7 users living across the US. This led Siemens PLM to sue TWIVision Engineering Group, LLC in the Texas Eastern District Court (TXED) later in the year.

In 2012, they sued 50 John Doe Defendants in the Eastern District of Pennsylvania (PAED).

From 2012-early 2014, there was a lack of lawsuits from Siemens, but in 2014, they sued 100 John Doe Defendants AGAIN in New York (NYSD). Later, they again reached into Texas (TXED), but this time, they sued a number of engineering companies, including BTL Machine, Inc., and Mercury Metal Forming Technologies, LLC. They also initiated two John Doe lawsuits, Case Nos. 4:15-cv-00582, and 4:15-cv-00017.

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2014-2015 Siemens Industry Software Inc. continued its litigation strategy in the Texas Eastern District Courts for the remainder of 2015.

2016 was a busy year for Siemens Industry Software Inc., as they filed large 100-Defendant cases against John Doe Defendants, this time in the Houston-based Texas Southern District Courts (TXSD). They also reached their individual lawsuits into both Ohio (OHSD) and Connecticut (CTD) where they sued Manufacturing Services International, Inc. and Demin, an individual defendant.  The main “100-person John Doe” lawsuits eventually suffered procedural issues of Siemens missing deadlines to name and serve defendants, and the lawsuit was dismissed.  However, even after the lawsuit was dismissed, Siemens continued to contact select defendants soliciting $50K+ settlements.

In 2017-2023, Siemens Industry Software Inc. has continued filing lawsuits in the Texas Southern District Court (TXSD), most recently in their Siemens Industry Software Inc. v. Does 1-268 (Case No. 4:23-cv-00498) lawsuit.

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Siemens Industry Software Inc. lawsuits in Texas

The cases of note currently in Texas are:

2023:
Siemens Industry Software Inc. v. Does 1-268 (Case No. 4:23-cv-00498) — this is their most recent lawsuit, filed in February, 2023.

2022:
Siemens Industry Software Inc. v. Does 1-100 (Case No. 4:22-cv-00588), filed in February, 2022.

2021:
Siemens Industry Software Inc. v. Does 1-142 (Case No. 4:21-cv-00385), filed in February, 2021.

2020:
Siemens Industry Software Inc. v. Does 1-150 (Case No. 4:20-cv-00798), filed in March, 2020, and
Siemens Industry Software Inc. v. Does 1-10 (Case No. 4:20-cv-00801), filed on the same day as the Does 1-150 case.

2019:
Siemens Product Lifecycle Management Software Inc. v. Does 1-118 (Case No. 4:19-cv-02448), filed in July, 2019, and
Siemens Product Lifecycle Management Software Inc. v. Does 1-150 (Case No. 4:19-cv-00129), filed in January, 2019.

2018:
Siemens Product Lifecycle Management Software Inc. v. Does 1-107 (Case No. 4:18-cv-02344), filed in July, 2018, and
Siemens Product Lifecycle Management Software Inc. v. Does 1-97 (Case No. 4:18-cv-00397), filed in February, 2018.

2017:
Siemens Product Lifecycle Management Software Inc. v. Does 1-93 (Case No. 4:17-cv-01796), filed in June, 2017.

2016:
Siemens Product Lifecycle Management Software Inc. v. Does 1-100 (Case No. 4:16-cv-03552), filed in December, 2016, and
Siemens Product Lifecycle Management Software, Inc. v. Does 1-100 (Case No. 4:16-cv-01422), filed in May, 2016.

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As of writing this page, most of the attention and controversy will be surrounding the February 2023 4:23-cv-00498 case here in Texas.  As such, to learn how a Texas defense attorney should handle a Siemens Industry Software Inc. case based on their past filings, click here.

WHERE DO I LEARN ABOUT THE SIEMENS CASES IN DEPTH?

To learn about the Siemens cases in depth, click here.

SIEMENS INDUSTRY SOFTWARE INC. STRATEGY:

In short, it appears as if the Siemens Industry Software Inc. strategy is as follows:

1) File a large 100+ Defendant lawsuit (most recently, v. 268+ defendants), encourage the court to approve early discovery allowing Siemens Industry Software Inc. to obtain the contact information for each of those 268+ John Doe Defendants.
2) Contact each of those defendants, convert accused defendants into paying customers (where the cost of the software can range from a few thousand dollars to tens of thousands of dollars).
3) Expand the lawsuit inquiry to the employer of the accused defendant engineer, and ascertain whether they have purchased volume licenses for their engineer employees.
4) Name and Serve and/or sue one or so defendants in a court outside the jurisdiction of the original court (this demonstrates that their reach is not limited to the courts in which they filed their original lawsuit). Unclear whether this is to obtain a $150,000 judgment for copyright infringement, or to convince that company to comply with their software licensing demands. I understand the goal of the lawsuits is to convert accused defendants into customers.
5) Proceed over the next three years contacting the various John Doe Defendants [even after the case is dismissed <– this has happened]. File a new lawsuit against 100+ more John Doe Defendants, and repeat Steps 1-5.

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BLOG POSTS:

Articles Written on the Siemens Industry Software Inc. cases (most recent first):

Siemens Industry Software Inc. – Software Piracy Lawsuits — “They’re Back!”, on 7/30/2017 (modified for each of the subsequent lawsuits filed, most recently on 2/28/2023).

Siemens Industry Software Inc. NX-based lawsuits – converting accused engineers into loyal customers, on 1/9/2017.

Software Developers are now tracking piracy through the USE of downloaded software, on 9/9/2016.

The Siemens Industry Software Inc. Case IS a File Sharing Case, on 6/20/2017.

What to do about the Siemens Industry Software Inc. v. Does case (TX), on 1/16/2016.

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LIST OF FEDERAL COURT CASES FILED (*UPDATED*):

IN THE CONNECTICUT DISTRICT COURT:
Siemens Product Lifecycle Management Software Inc. et al v. Demin (Case No. 3:16-cv-00553)

IN THE NEW YORK SOUTHERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. Does 1 – 100 (Case No. 1:14-cv-01926)
Siemens Product Lifecycle Management Software, Inc. v. Does 1-50 (Case No. 1:11-cv-08469)

IN THE OHIO SOUTHERN DISTRICT COURT:
Siemens Product Lifecycle Management Software In v. Manufacturing Services International, Inc. (Case No. 3:16-cv-00182)

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IN THE PENNSYLVANIA EASTERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. Does 1-50 (Case No. 2:12-cv-06795)

IN THE TEXAS EASTERN DISTRICT COURT:
Siemens Product Lifecycle Management Software, Inc. v. BTL Machine, Inc. (Case No. 4:14-cv-00506)
Siemens Product Lifecycle Management Software, Inc. v. Does (Case No. 4:15-cv-00582)
Siemens Product Lifecycle Management Software, Inc. v. Mercury Metal Forming Technologies, LLC (Case No. 4:14-cv-00002)
Siemens Product Lifecycle Management Software Inc. v. Does (Case No. 4:15-cv-00017)
Siemens Product Lifecycle Management Software Inc. v. TWIVision Engineering Group, LLC (Case No. 6:11-cv-00679)

IN THE TEXAS SOUTHERN DISTRICT COURT:
*NEW* Siemens Industry Software Inc. v. Does 1-268 (Case No. 4:23-cv-00498)
Siemens Industry Software Inc. v. Does 1-100 (Case No. 4:22-cv-00588)
Siemens Industry Software Inc. v. Does 1-142 (Case No. 4:21-cv-00385)
Siemens Industry Software Inc. v. Does 1-150 (Case No. 4:20-cv-00798)
Siemens Industry Software Inc. v. Does 1-10 (Case No. 4:20-cv-00801)
Siemens Product Lifecycle Management Software Inc. v. Does 1-118 (Case No. 4:19-cv-02448)
Siemens Product Lifecycle Management Software Inc. v. Does 1-150 (Case No. 4:19-cv-00129)
Siemens Product Lifecycle Management Software Inc. v. Does 1-107 (Case No. 4:18-cv-02344)
Siemens Product Lifecycle Management Software Inc. v. Does 1-97 (Case No. 4:18-cv-00397)
Siemens Product Lifecycle Management Software Inc. v. Does 1-93 (Case No. 4:17-cv-01796)
Siemens Product Lifecycle Management Software Inc. v. Does 1-100 (Case No. 4:16-cv-03552)
Siemens Product Lifecycle Management Software, Inc. v. Does 1-100 (Case No. 4:16-cv-01422)

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HOW AN ATTORNEY SHOULD REPRESENT A SIEMENS INDUSTRY SOFTWARE INC. CLIENT:

Because software-based copyright infringement cases are especially concerning the John Doe Defendants who are accused of using pirated software (such as what is going on right now with the Siemens Industry Software Inc. v. Does 1-268 [4:23-cv-00498] case in Texas), I thought it would be beneficial to take a few moments and simplify the process. That way, when you pay an attorney, you will know exactly what the attorney will be doing.

Here are the steps your attorney (us, or anyone else) should be taking on your behalf — specifically with the Siemens Industry Software Inc. v. Does 1-268 (Case No. 4:23-cv-00498) case:

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STEP 1) STOP PLAINTIFF FROM CONTACTING YOU OR ANYONE ELSE ON YOUR BEHALF (WORKPLACE) ABOUT THE CLAIMS AGAINST YOU.

Once your plaintiff attorney learns that you are represented by an attorney, all communication must be with that attorney alone. Phone calls or letters to client directly once a notice of representation is provided can jeopardize that attorney’s law license.

STEP 2) RESEARCH AND DISCUSS CLAIMS COMPARING PLAINTIFF ATTORNEY’S DATA OF USE VERSUS ACTUAL USE OR NON-USE.

Siemens Industry Software Inc. likes to research the claims, and they take their time in getting the entire picture before discussing settlement. It is important to share truthful information with your defense attorney so that claims against you can be disputed with facts and dates. And obviously, your attorney should have the common sense to discuss the claims without admitting guilt on your behalf.

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STEP 3) DISCUSS AND NEGOTIATE SETTLEMENT OPTIONS WITH PLAINTIFF ATTORNEY, WHETHER A SOFTWARE PURCHASE, A LICENSE, A SETTLEMENT FEE, OR NO SETTLEMENT (PROCEED WITH LAWSUIT).

Normally the plaintiff attorneys in a copyright infringement lawsuit (or more frequently, an IP address-based “copyright troll” lawsuit) will immediately approach a settlement regardless of guilt or wrongdoing. This is not the case with the Siemens Industry Software lawsuits. Rather, it appears as if they are seeking to convert those using unlicensed versions of their software into paying customers. For this reason, once the investigation is completed and claims are discussed, settlement options are discussed as well. This might include purchasing software, paying a settlement, or negotiating a license based on the limited past use of the software.

The “no settlement” option is obviously the scenario where the client did not do the download. Because Siemens Industry Software Inc. software is expensive (costs can range from a few thousand dollars to over thirty thousand dollars), there is no reason to negotiate a settlement if the accused John Doe Defendant did not download or use the software. Rather, the alternative is to provide proof that the John Doe Defendant is not the individual Siemens Industry Software is looking for (it is difficult to prove a negative, but it is doable), or to help Siemens Industry Software Inc. come to the realization that the actual software user is the engineer next door running his business from his home.

Obviously if neither side can agree on anything, then yes, it makes sense to proceed to allow the plaintiff attorney to name and serve your client, file an answer with the court, and proceed with defending your client’s interests in the courtroom.

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STEP 4) NEGOTIATE PRICE (IF BENEFICIAL, CONSIDERING CLIENT’S ABILITY TO PAY). PROVIDE DOCUMENTATION OR STATEMENT IF NECESSARY TO SUBSTANTIATE CLAIMS.

Many accused defendants installed the software for educational purposes — to ‘tinker’ with the softare, to learn the software, or to become conversant with the software. While the intention of the unlicensed use is noble (e.g., that user would later be working with a licensed version of the software at their workplace or in their business), for the moment, there was folly in their initial use of the software. This is our goal — to have these specifics be relevant and useful in a negotiation with Siemens Industry Software Inc. to arrive at a settlement price the client can afford.

STEP 5) NEGOTIATE TERMS OF SETTLEMENT AGREEMENT. NEGOTIATE A SOFTWARE LICENSE IF NEEDED OR REQUIRED.

These are two separate steps. The settlement agreement should be specific to the claims of copyright infringement, and they should include the nuances of Texas contract law in order to ensure the agreement is enforceable. The software license also is full of nuances and words that requires an attorney who knows what terms mean in software licenses (because certain words have meanings in the context of a software license which are contrary to the plain meaning of the word), and who is forceful enough to be willing to argue for terms or clauses which protect the client’s rights. Lastly, the software license should provide the accused John Doe Defendant the right to use the software in the way the accused defendant wants or needs to use the software in the future. It makes no sense to negotiate a limited software license to cover only past use when the defendant is an engineer and will be needing to use the software again in the future.

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STEP 6) HAVE PLAINTIFF ATTORNEY SIGN AGREEMENT(S), THEN HAVE CLIENT SIGN AGREEMENT(S) AND PROCESS SETTLEMENT PAYMENT.

This is self explanatory. Siemens Industry Software Inc. is not bound to an agreement until they sign it (or until their attorney with authority to sign signs it on their behalf as their agent). Attorneys generally try to get the John Doe Defendant to sign first and pay their settlement fee, and then ‘maybe’ the plaintiff attorney will sign it, and ‘maybe’ the attorney will accept the payment, and ‘maybe’ the attorney will release that defendant from liability once the settlement is received. These are games a plaintiff attorney may play, and for this reason, it is advisable to have the defense attorney insist that the plaintiff attorney sign the agreement first in order to bind their client to the terms of the agreement… before their client signs the agreement or pays a penny in settlement of the claims against them.

STEP 7) FOLLOW-UP WITH PLAINTIFF TO HAVE CLIENT’S “JOHN DOE” ENTITY DISMISSED FROM CASE.

Once again, this is self explanatory, but unfortunately, it must be a step. Too often, plaintiff attorneys have the clients sign first and pay first, and then when they get around to it, they’ll sign the agreement and release that defendant from liability. However, this could take weeks or months.

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The reason for this is because once their client has their money, without being contract-bound to release the defendant from the lawsuit, the John Doe Defendant who paid their settlement fee becomes a lower priority to the busy plaintiff attorney (who is juggling sometimes hundreds of defendants in multiple cases) who is more worried about the due dates for their other cases, or who is more worried about extracting settlements from other defendants. This is why it is important in STEP 6) for the plaintiff attorney to sign the agreement first.

Nevertheless, even with a signed agreement, sometimes the plaintiff attorneys need ‘reminders’ to do what they are duty-bound to do. Thus, your attorney should not close the client’s file when payment is sent, but rather, the attorney should stay on top of the plaintiff attorney until the dismissal is actually filed in the court dismissing that John Doe Defendant from liability.

In sum, copyright infringement cases are all similar, but each one has its nuances. The steps described in this article apply to any John Doe Defendant in any copyright infringement lawsuit, and for this reason, I wrote this article 1) to not only give the client an understanding of the steps which are required in representing a client prior to being named and served in a John Doe lawsuit, but more importantly, 2) to allow that client to hold their lawyer’s toes to the fire and make sure they are being represented carefully and individually.

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LEVERAGE:

ONE LAST THING — I wanted to discuss LEVERAGE. A copyright infringement lawsuit is in federal court, which means that out-of-state attorneys may attempt to solicit clients to engage in settlement negotiations only. However, with a client as serious as Siemens Industry Software Inc., especially with the financial backing of the corporation and the millions of dollars they can pour into their lawsuits, it is probably a good idea to retain an attorney who can step foot into the courtroom if something goes wrong (and things DO go wrong). The Siemens Industry Software Inc. attorneys at Reed Smith LLP can recognize an out-of-state attorney who has little leverage to negotiate versus an in-state attorney who is willing to pull the settlement off of the table and proceed with defending the case if the plaintiff is not being cooperative in resolving the claims against the client. In short, an attorney with leverage will get a better result for his client as compared to an out-of-state attorney without leverage.

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