Siemens INDUSTRY SOFTWARE INC. converting NX software pirates into customers.

April 16, 2021January 9, 2020 by Rob Cashman (Author, Owner of the Cashman Law Firm, PLLC)

Siemens PLM | Siemens Product Lifecycle Management Software Piracy Lawsuit

Siemens Industry Software Inc. has been suing engineers as “John Doe” Defendants

Siemens Industry Software Inc. has been suing engineers as ‘John Doe’ Defendants in federal courts. The lawsuits are for the piracy of their NX software since it was in version 7 (so far, I have seen claims against users of NX 7, NX 8, NX 9, NX 10, and NX 11, but not yet for NX 12 — all of which are available on the bittorrent networks). Most recently, I have seen lawsuits focusing in on the unlawful use of the Solid Edge and FEMAP software products.

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In June, I wrote the “What to do about the Siemens Industry Software Inc. v. Does case (TX)” article which provided specific information surrounding the lawsuit from information acquired from the Siemens Industry Software lawyers themselves. However, back then, there was much still unknown, and now (almost 6 months later), I have a much better idea of how this is happening, what Siemens Industry Software is doing to catch those using the software illegally, whether claims of piracy are leaking over to the employers of the engineers who use the pirated software at their workplace, and how they are handling claims against those defendants, both in and out of the courtroom.

What you need to know about these lawsuits is that the Siemens Industry Software Inc. lawsuits still deceptively look like “copyright troll” lawsuits, but they are not. I will get into this momentarily.

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UPDATED LIST OF FEDERAL COURT CASES FILED:

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)

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 1-142 (Case No. 4:20-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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JOHN DOE DEFENDANTS ARE GETTING CAUGHT THROUGH THE USE OF THE SOFTWARE, NOT THROUGH THE ACQUISITION OF THE SOFTWARE.

In September of 2016, I was still piecing together how a person can get caught not through the download of pirated software via BitTorrent, but through the USE of that software (that article is still available for viewing, although the picture is more clear to us now as I describe my current understanding of it here, specifically tailored to the Siemens Industry Software Inc. Software-based lawsuits).

As we’ve learned, most Siemens Industry Software Inc. NX Software available for download on the piracy websites comes with a serial number (“SN”) and an “activator” which modifies the application to allow it to accept a random password that the SN activator generated. (Not relevant, but still interesting to know: The serial number + details about the computer or laptop upon which it is installed creates a “Unique ID” which can be checked with valid IDs on the server; this circumvents a computer from using a “valid” registration code for a computer for which that registration code was not licensed to. Thus, even though the serial number activator provided the software with a valid serial number, the company servers know the software is pirated.)

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This application modifier is known as a “crack,” and software which is altered to accept the serial number generated by the crack thinks locally (that is, on the laptop in which it was installed) that the software was properly acquired, purchased, and lawfully registered. Most cracks also revert the executable file used to run the file back to its original unaltered state once the software has been registered.

The problem is that even cracked software connects to the internet, for example, to access libraries in the program file which are stored on the company’s servers. In other words, for economy purposes, it would take up too much hard drive space to store every piece of a large multi-gigabyte-sized program on each person’s hard drive. Thus, companies now store core components of their software on their servers. This is generally referred to as “cloud-based software,” but what exactly is stored online with the Siemens Industry software is still unknown (and they keep this purposefully undisclosed because they track the IP addresses of the computers who run the software and access these files online).

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EVEN IF THE SOFTWARE HAS BEEN REGISTERED using a “SN and an activator,” (as provided on the bittorrent websites), when the software connects to Siemens Industry Software Inc.’s servers to access pieces of the software to run, if the registration code (or more accurately, the Unique ID, as described above) does not match a valid paid registration from their own records, that software unbeknownst to the user is flagged as being unlicensed, and the IP address is recorded. We now understand that the software user is not made aware of this until he is implicated as a John Doe Defendant in a copyright infringement lawsuit.

EVERY TIME that user uses the NX software, another entry of unlicensed use is recorded (date, time, etc.) and the IP address of the internet connection used when accessing the software is also logged. This is how a Siemens Industry Software Inc. lawsuit against a John Doe engineer can leak over to his employer receiving letters for the infringement of their software, even when the software was acquired at the accused John Doe engineer’s home.

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WHO IS THE TARGET OF THESE LAWSUITS.

I mentioned above that the Siemens Industry Software Inc. lawsuits look deceptively like “copyright troll” lawsuits, but in hindsight, we have learned they are not. Rather than extorting a few thousand dollars from every John Doe Defendant regardless of guilt, Siemens is looking for a particular defendant.

Siemens Industry Software wants to find the engineer who is providing “paid” engineering services, either 1) from his own laptop in his own small business, or 2) from his employer’s place of business where unbeknownst to the employer, that employee is bringing his unlicensed software to his workplace and using that pirated software at work [noting that his work does not own or pay for a license for the software].

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In other words, Siemens Industry Software wants to find those engineers who are using their software but who are not paying a license for the use of that software, and they want to turn that enterprising engineer into a paying customer. Moreso, Siemens Industry Software wants to find that company (the employer of that engineer) who is benefiting from the unlicensed use of their software, and to turn that corporate entity into a “volume license” paying customer. This is where the “big bucks” are made.

WHAT IF YOU ARE A STUDENT?

Students are a different story than paid engineers. Just as law students are fed unlimited free case lookup services and are encouraged with points and free coffee mugs for using as much of services as they can [only to be hit with a multi-thousand-dollar subscription upon graduation for what a few days ago was free (think, WestLaw, LexisNexis)], engineering students are seen as the same “cash cows” for Siemens Industry Software Inc. as law students are seen by the WestLaw/Nexis case lookup services. A poor engineering student today is seen by Siemens as a future subscription-based customer for the rest of his working career, and if not, that engineer’s employer will be a “volume license” customer which is even more profitable for Siemens.

If you have not yet figured this out, I have found that engineering students (and those individuals who are smart enough to figure out that the NX software has specific applications for use in conjunction with their 3D printers) find themselves in the spider web of these lawsuits more than anyone else. These individuals ‘mess around’ with the software in ways which do not provide them an income (what we call “non-revenue-producing use,” or “personal use”). Rather, they use the NX software (or more recently, the Solid Edge ST9 software) to gain professional skills knowing that if and when these students do find employment, use of the Siemens PLM software will become a necessity. So the students download it, play around with it, then get sued and call me fearing that their professional lives are over.

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But no attorney at Reed Smith LLP — not Robert Riddle, Andrew Bluebond, or most recently, Kate Geldmacher… and certainly not Steven Dietz — wants to end the financial life of a future customer. Aside from the fact that a student has no assets to seize, it is my understanding that Steven Dietz would rather turn that student into a loyal customer. For this reason, I have been able to accomplish resolutions of claims with students in a way in which is simply not available to the engineer who uses Siemens Industry Software Inc.’s unlicensed software for profit.

That is not to say that an engineer won’t be able to “get out” of this lawsuit — it simply takes a bit more work, perhaps paying Siemens Industry Software a settlement fee based on their particular circumstances (read that again carefully), and based on what software was allegedly used, what module add-ons were used or needed, whether the use was for personal or business reasons, and whether use of the software is still needed in the future.

The Engineer-Student Roommate Scenario

Lastly, [since I am listing scenarios I’ve seen over the past few months,] non-engineering students who have roommates or suitemates who are engineering students also have been the recipients of the subpoena letters from their ISP (most recently, Comcast). While Siemens does not see the non-engineering student or enterprising 3D printer genius as a future customer, your engineering roommate or suitemate is still seen as such, and thus involving him or her as part of the solution can easily fix a $150,000 copyright infringement lawsuit against you.

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In sum, Siemens wants to convert those illegally using their software into customers.

So as you see, Siemens Industry Software Inc. looks like a copyright troll, but they are not. Their attorneys are often not interested in merely a settlement, but in converting the accused John Doe software user into a customer (or, as a future customer). This means that settlements are accepted where there is a future benefit to Siemens Industry Software, as they are not looking to use the lawsuits as a means to “cash out” or to “punish pirates.” Obviously this could change, and there have been circumstances where it is more feasible to simply defend a client by representing him or her in the federal court rather than having him agree to anything he or she did not do, but for the most part, Siemens Industry Software Inc. seems to be straightforward on what they seek to accomplish with these lawsuits.

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Siemens Industry Software Inc. defendants, we can still speak AFTER your APRIL 5TH deadline.

September 5, 2020September 21, 2018 by Rob Cashman (Author, Owner of the Cashman Law Firm, PLLC)

To those engineers implicated in the recent Siemens Industry Software Inc. v. Does 1-150 (4:20-cv-00798) lawsuit:

I want to simply apologize for not being able to immediately speak to each of you. You are all asking for appointments for the same April 5th, 2020 deadline provided to you on your Charter Communications ISP subpoena letter. Please be patient.

Choosing “the convenient path” before April 5th.

No doubt, there are likely 10+ attorneys actively paying to advertise for your business. However, none of them are located here in Houston, Texas where the lawsuit is, where the courthouse is — where your plaintiff attorneys are. Thus, they will be actively soliciting your business to acquire you as a client for the purposes of satisfying the volume business they have set up around these lawsuits. I understand that it is convenient to jump and hire the first attorney who will have you as a client, but choosing the convenient path is exactly why you have been sued in the first place.

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If you have read what I have written on the previous seven waves of lawsuits (this is the 8th time they have filed lawsuits with 100+ defendants), you already know that I have successfully represented many clients against Siemens Industry Software Inc. and I have had clients that have both legitimized their prior illegal use by purchasing a license to their proprietary software. I have also had many clients who have had me explain that their use (although unlawful) was for personal use* (off of the court docket, without their names being exposed) — they paid no settlement, they purchased no license, and they were dismissed from the lawsuit and no longer worry about being sued for their past acts of infringement.

*2020 UPDATE: While many previous clients did not need to purchase a software license, as of Siemens Industry Software Inc.’s 2019 lawsuits, they are now asking ALL defendants to purchase a software license, even if it is to a lesser Siemens software product (or an entirely different software product).

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The “cooperative” approach vs. the litigious approach.

There are two ways to approach a Siemens Industry Software Inc. software piracy lawsuit — 1) fight each claim on the merits of the copyright infringement claims against each defendant, or 2) (our approach) cooperate with the Siemens attorney’s attempts to sort through each of the 150+ defendants to help them determine who needs a license for their past use, and who does not.

Siemens is NOT a copyright troll (contrary to popular belief and their use of mass John Doe copyright lawsuits), and so having your attorney treat them like copyright trolls will cause you problems in your lawsuit. If you look at a timeline of their cases (which I have picked a representative set of cases over the years), you see that Siemens Industry Software Inc. pursues former John Doe Defendants, even after lawsuits are dismissed, so applying what I have taught over the years on this website and approaching their case with what I have described as the “ignore” route (as other attorneys might) is not the recommended path to resolving the claims in this lawsuit.

The way out of this lawsuit is simply the long way out. Hire an attorney (myself of someone like me), have him represent you just as I have suggested, and have him represent you through the entire lifecycle of this lawsuit. It will be over in a few months. Just let the attorney do exactly what he has (what I have) done in the past.

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What about my April 5th, 2020 deadline? Can I file a motion to quash the subpoena?

As for your April 5th, 2020 deadline to file a motion to quash with the court to stop them from handing out your information, again, do not be fooled here. You likely do NOT live in Texas and so a motion to quash *IS* a viable option, however, it is not the recommended option. If you hire an attorney (myself or any other attorney) to file a motion to quash because you do not live in Texas, you will likely win the motion to quash and you will [most likely] be SEVERED AND DISMISSED from the lawsuit. However, be VERY AWARE that the immediate next act would be that the plaintiff attorney [from his computer using the PACER / e-filing system available across each of the federal courts in the US] would file the identical lawsuit against you personally, this time Siemens Industry Software Inc. v. YOU, without the padding or anonymity that a John Doe placeholder status provides you, and without the padding that you might have sharing the liability of the lawsuit among 149 other similarly situated defendants.

In other words, don’t fall for sales tactics. Stay as private as possible (you can always contest the personal jurisdiction later and move the lawsuit into your own state if you are ever sued personally in this lawsuit). Up front, this is the 8th time Siemens Industry Software Inc. has sued, and I have never needed to do this nor have I had a client named and served in one of their cases. As I said, the approach is COLLABORATIVE with Siemens Industry Software Inc., not litigious.

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Retaining me as your attorney before April 5th is a PREFERENCE, not a requirement.

In sum, while I always PREFER to have you be a client before your April 5th, 2020 deadline before your Charter ISP hands over your information, with the Siemens Industry Software Inc. cases, *this is not required.*

As I have written many times, Siemens (now with their Kate Geldmacher attorney) handles these cases methodically and SLOWLY. It could take weeks before they even get to your John Doe entity. For this reason, (and now understanding that you will not be filing a motion to quash before 4/5), please be patient and take my appointments on https://www.torrentlawyer.com/calendar/ as they become available. There is no rush to have me represent everybody by April 5th, nor is this even possible.

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A quick note about limited time slots and limited availability to speak to you, at least initially.

Lastly, I assume if you have reached this article, you understand that I do not take every client that I speak to, and that there are limited time slots available (here is why). I simply run my practice in a methodical way, taking clients as I can, and one at a time. I also spend most of my time HANDLING CLIENT CASES rather than marketing for new clients. I am simply not interested in gobbling as many clients as I can, and if you need to hire an attorney today, I will not be your attorney.

I have done the Siemens Industry Software Inc. cases from start-to-finish SEVEN TIMES NOW. Watch my calendar for availabilities (as new ones open up), and grab them when they become available. Assuming you have read the articles on my site and are “on board” with my collaborative approach (meaning, cooperating with Siemens Industry Software and helping them sort through each of the 150+ defendants, not blindly fighting them tooth-and-nail like any other copyright infringement or “copyright troll” lawsuit), I will happily take you as a client. This is true even if we end up speaking after your Charter ISP hands over your information to the Siemens attorneys.

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I understand this lawsuit has generated much concern for you. Please understand that I have done this before. Read what I have written about the different “categories” of defendants (based on their usage) that I have hashed out over the years. Stay calm, and understand that this will be a long but drama-free process. I look forward to speaking to you and serving you as your attorney.

New Siemens Industry Software Inc. Software Piracy Lawsuit.

January 24, 2021July 30, 2017 by Rob Cashman (Author, Owner of the Cashman Law Firm, PLLC)

SIEMENS INDUSTRY SOFTWARE INC. SOFTWARE LAWSUITS — “THEY’RE BACK!”

I didn’t want to let this one slide. Remember the Siemens Industry Software Inc. lawsuits (where Siemens sued a number of engineers who used their NX software without a license)? Well, in July, 2018, they have filed their newest copyright Infringement lawsuit (this is the FIFTH TIME they are suing), this time against 107 John Doe Defendants (here in our own Texas Southern District Court, no less).

Siemens Product Lifecycle Management Software Inc. v. Does 1-107 (4:18-cv-02344), filed July, 2018

I’ve already written all that needs to be known about the Siemens Industry Software Inc. lawsuits

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Siemens Product Lifecycle Management Software Piracy Lawsuit — Screenshot from Siemens PLM Software’s website on the NX Mach 3 software.

What happened to the Siemens Industry Software Inc.’s older lawsuits?

WAVE 1

In Wave 1, Siemens solicited licenses for their NX software. At first, we thought that these were bittorrent-based lawsuits like the others we have been dealing with, but then we learned that Siemens was actually tracking the unlicensed USE of the software (e.g., think “software phone home”).

This complicated the lawsuits because they were dealing with actual evidence (rather than the “snapshot bittorrent-based evidence” we have seen in the movie lawsuits). As a result, we put together a list of steps an attorney should take in defending a Siemens Industry Software Inc. lawsuit, and this has proven to be an effective strategy.

Over time, the lawsuit progressed, and eventually Siemens dismissed the lawsuit once they realized who they wanted to name and serve in their own lawsuits, and they filed individual copyright infringement lawsuits against companies they discovered were using their software without a license.

WAVE 2

In Wave 2, Siemens filed a similar lawsuit, this time against 100 new defendants. They surprised a number of defendants with settlement numbers of $50,000+ (eventually, we learned that they were settling licenses to their software, and they actually cost that much). This second wave lawsuit “on the books” looked to be a failure because they missed a FRCP Rule 4(m) deadline to name and serve defendants. As a result, they dismissed the entire lawsuit, however, I know that they continued after the dismissal to contact accused defendants (or their attorneys) with the intention of having those accused defendants [now dismissed] purchase a license to cover their use of the Siemens Industry Software Inc. NX software.

WAVES 3-4 (2017 – mid-2018)

In Waves 3-4, Siemens continued to target engineers in their lawsuits. The purpose of these lawsuits was to “legitimize” those who were using their NX software “for profit.” They were more reasonable this time on the settlement amounts (no settlements, just purchase of software licenses), but they allowed the defendant some leeway in determining what software title would best benefit the user, and whether Mach 3 was needed, or whether a lower-cost alternative was an option. Siemens Industry Software Inc. also started to discuss settlement negotiations themselves (e.g., offering money to settle the claims), however, this never materialized.

WAVE 5 (late 2018)

Now in Wave 5, I do not yet know whether these 107 John Doe Defendants are from the same pool as the earlier lawsuits were filed, or whether these are from an entirely new pool of accused infringers. However, at least the lawsuit itself (its intentions, and what to expect) are less of a mystery, as we were able to settle a number of claims in their previous lawsuits through the purchase of a software license.

2020 UPDATE:

WAVES 6-7 (2019):

In Wave 6-7 (2019), Siemens Industry Software Inc. changed their strategy, attempting to streamline the settlement process. In previous cases, those that used the software for personal reasons (e.g., academic, training, 3D printing, designing private home uses, etc.) were considered “tinkerers.” In previous lawsuits, Siemens did not require this group of individuals to obtain a software license.

IN WAVES 6 AND 7, *THIS CHANGED*. Siemens Industry Software Inc. asked most defendants to buy software to legitimize their use. The software did not need to be the same $30,000 NX software they used prior to being sued, but lesser versions with fewer features, or altogether other software packages [at a steep discount] were presented as options.

WAVE 8 (2020):

Now we are in Wave 8 (2020). In this wave, there are two lawsuits; one has 150 John Doe Defendants, and the other has only 10 John Doe Defendants. I do not yet know whether these 150 John Doe Defendants are from the same pool as the earlier lawsuits were filed, or whether these are from an entirely new pool of accused infringers. I suspect that the 150 defendants in the (4:20-cv-00798) case are all new defendants, and that 10 defendants in the (4:20-cv-00801) case are old defendants who did not settle the claims against them.

As always, here is how an attorney should be handling a Siemens Industry Software Inc. lawsuit, and how we at the Cashman Law Firm, PLLC would handle your Siemens Industry Software Inc. case. This has been an effective strategy in each of the various Siemens Industry Software lawsuits, and thus I am suggesting it again with this newest wave of lawsuits.

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Siemens Industry Software Lawsuit Expecting Dismissal

August 29, 2020April 5, 2017 by Rob Cashman (Author, Owner of the Cashman Law Firm, PLLC)

Siemens PLM v. Does 1-100 (TX) and missed deadlines.

As many of you know, our Cashman Law Firm, PLLC is representing a number of engineer clients who are accused in a Siemens Industry Software lawsuit of using their Siemens NX Mach 3 software without a valid license.

Siemens as we know is using the lawsuit as a pretext to convert accused infringers into valid license holders. The name of their lawsuit is the Siemens Product Lifecycle Management Software, Inc. v. Does 1-100 (Case No. 4:16-cv-03552) case filed in the Texas Southern District Court.

The Siemens Industry Software Inc. lawsuit attorneys just missed a deadline to name and serve defendants.

Procedurally, Siemens Industry Software was under a FRCP Rule 4(m) deadline to name and serve defendants by 4/3/2017. This deadline was set by the judge, and the judge is the one with the discretion on whether to extend it once, multiple times, or dismiss the lawsuit after a certain time period has elapsed.

As of writing this article, The Siemens Industry lawsuit attorneys did not file anything on 4/3, and their deadline has passed. Further, it has been two days without any activity on the court docket from Siemens Industry Software Inc. This is not surprising, as copyright cases often miss a deadline such as this, and then they request an extension and the federal judges readily approve them, sometimes weeks later.

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What a dismissal means to your case, and how you should proceed depending on your circumstances.

A dismissal of the Siemens Industry Software Inc. lawsuit means that you are no longer a John Doe in the case. However, whether this matter is over or not is based on whether you are before or after the ISP handed out your information in compliance with the subpoena.

If the ISP has not yet complied with the subpoena, your contact information is still hidden from the Siemens Industry Software lawsuit attorney.

If you are before the due date that your ISP gave you before they comply with the subpoena, you are in luck. At this point, you are still anonymous, and if you hired an attorney, your attorney will likely offer to return the money you paid to him. It would benefit you to have him contact the ISP to notify them that the Siemens Industry Software lawsuit has been dismissed and that they should not comply with the Siemens subpoena.

By having the ISP agree not to comply with the subpoena sent to them by the Siemens Industry Software Inc. lawsuit attorneys (Robert Riddle & Andrew Bluebond), you will remain anonymous, and your Siemens Industry Software lawsuit plaintiff attorneys will never learn who you are.

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If the ISP has already complied with the subpoena, your contact information has been shared with the Siemens Industry Software lawsuit plaintiff attorneys.

If the ISP date has already passed, the assumption is that the ISP already complied with the subpoena, as they told you they would. Here, you are no longer anonymous, and the plaintiff attorney already knows who you are.

How the 3-Year statute of limitations for copyright infringement cases suddenly becomes relevant.

A dismissal at this point is inconsequential because the plaintiff attorney has already acquired the information he needs to proceed against you out of court. The statute of limitations to sue someone for copyright infringement is three years from the alleged date of infringement. That means that they have three years to sue you as a defendant in a copyright infringement case for this same claim*.

*NOTE: There is more on this topic, but it is outside the scope of this article.

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Whether your plaintiff attorney is a ‘copyright troll’ or now also becomes relevant.

Depending on whether your copyright holder is a ‘copyright troll’ (meaning that they will just file another lawsuit against a new set of John Doe Defendants), or whether they will continue to pursue claims against you out of court (using the information they obtained from this lawsuit), you have two options on how to proceed.

If the copyright holder is a copyright troll, a dismissal such as this one should give you reason to celebrate. However, Siemens Industry Software Inc. is not a typical copyright troll, and that is why I wrote this article.

To a Siemens Industry Software Inc. attorney, you are worth $30K-$60K.

Each settlement in a Siemens case is worth $30K-$60K for Siemens. The goal of the Siemens Industry Software Inc. attorney is to contact defendants to arrange for a purchase of one or more NX Mach 3 “seats” or “licenses” (at roughly $30K/seat).

An engineer who has been caught using the software without a license, and who faces an ongoing $150,000 lawsuit is an easy candidate for Siemens to convert into a paying customer. This can be done with or without a lawsuit being in play, at it would apply regardless of whether the judge dismissed the underlying lawsuit for missing the FRCP Rule 4(m) deadline, or whether they tire of being monitored by a judge and they dismiss the lawsuit themselves.

After all, they already have the information they need, and they have three years to continue contacting defendants until such a time when they are no longer able to proceed (or until the Siemens clients stops paying their fees).

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In sum, the case is NOT yet dismissed.

The Siemens PLM v. Does 1-100 Texas case is not yet dismissed, although I wanted to have this information ready for you so that you will be prepared with your options should a dismissal happen.

NOTE: No attorney client relationship is established by sending this form, and while the attorney-client privilege (which keeps everything that you share confidential and private) attaches immediately when you contact me, I do not become your attorney until we sign a contract together. Also, the contents of topics discussed on this site are not meant to be considered legal advice to act upon or not act upon. Contact your attorney for answers specific to your particular circumstance.

Siemens Surprises John Does With $50K+ Settlement Requests

August 29, 2020March 12, 2017 by Rob Cashman (Author, Owner of the Cashman Law Firm, PLLC)

I have done further searching, and it appears as if the prices that Siemens Industry Software Inc. is asking for are shockingly accurate. They appear to be asking from John Doe Defendants the cost of 1-2 business licenses for their NX software, which can be as high as $30,000 per license. So while for an average internet user spending $30,000 on a piece of software would be obscene, apparently this is what people are paying for this software. This does not mean that there is no room for negotiation — circumstances as to whether or how the use happened differs for every defendant, and every John Doe Defendant has a different financial situation and personal circumstances.

[ *2020 UPDATE* ] :
REBRANDING. Siemens has recently rebranded from “Siemens Product Lifecycle Management Software, Inc.” (or, “Siemens PLM”) to “Siemens Industry Software Inc.” To avoid confusion, when referencing Siemens, I will use their current name, but when referencing their older cases, I will use the names that are still on the court records.

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It usually makes no sense writing about cases once they have progressed quite a bit, but with the Siemens Industry Software Inc. cases, Siemens has ramped up their sales tactics in a way which needs some explaining.

Recent letters that have gone out from Andrew Bluebond (and in more recent lawsuits, they might be sent by Katherine Geldmacher) of Reed Smith LLP are asking for numbers in excess of “$50,000, plus any applicable sales taxes, legal fees and expenses, to license [to accused defendant]” (emphasis added). Thus, a Siemens settlement could end up being $55,000 – $60,000 (or more) just for using the software without a license.

I have not yet figured out how they have come to this large number, because each defendant only has a limited number of “infringing uses” of Siemens Industry Software Inc.’s NX software.

Have you read enough? Book Now to get help. > > >

WHY HIRING AN ATTORNEY AT THIS LATE STAGE OF THE LAWSUIT IS A GOOD IDEA.

Initially, I stopped taking clients for this case in February, but because no doubt people are being hit with these high numbers (this was an unexpected turn for Siemens), it makes sense to have us represent you to negotiate a settlement price this high down to something that is in more of a “fair” price range. And yes, I am willing to take on a limited number of new clients simply because Siemens is suing in my state, and I can easily appear and represent clients in the Texas Southern District Court should negotiations go awry. Also, I am already spending the time to research the cases and review the evidence they have against each John Doe Defendant, so I have already done much of the legwork (which you will not need to pay me for).

It also must be noted that at this price point, it simply makes sense to fight the case in court (especially if you did not use the software). But before you panic about the $50,000 settlement letter you received, understand what is likely going on.

Have you read enough? Book Now to get help. > > >

HOW SIEMENS INDUSTRY SOFTWARE INC. SALES TACTICS MIMIC THOSE OF SELLING AN EXPENSIVE SUIT.

When you go to a clothing store to purchase a $300 suit, the salesperson will always show you the $2,000 suit first. Then, he’ll show you an $1,800 suit that is obviously not nearly as nice as the $2,000 suit. Then, he’ll show you a $1,000 suit that looks even less pleasing than the more expensive suits. You begin to doubt whether a $500 suit will even give you the quality you thought you wanted. But then… poof! The salesperson finds a $500 suit, “in the back, that we just got in stock,” and that $500 suit is more beautiful than any of the other more expensive suits. Excited that you are getting a good ‘deal’, you proceed to purchase the $500 suit, and while you are at it, you purchase a belt, buckles, an expensive tie and shirt, and spend another $300 in accessories and alterations. In sum, you walk out of the store having spent $800, but you feel like a million bucks.

Obviously there is ABSOLUTELY NO CONNECTION between buying a suit and being hit in the face with a $150,000 copyright infringement lawsuit for tinkering with software that is being shared on the piracy bittorrent websites, supposedly for free (and what company monitors and sues on the piracy and unlawful USE of that software, anyway). But there is something to say of this tactic. No doubt if you end up paying $15,000 for their base software after being initially asked for $50,000, you’ll think you are getting a great ‘deal’.

Have you read enough? Book Now to get help. > > >

WHAT IS THE TRUE RETAIL PRICE OF SIEMENS INDUSTRY SOFTWARE INC. SOFTWARE?

I mentioned $15,000 as the guesstimate of the base price for the Siemens Industry software, and really, I do not know what the base price actually is. I have seen websites advertise the sale of that software from $15,000 – $20,000. I have also seen ‘less credible’ sell ‘valid’ licenses for $2,500, so who really knows.

2020 UPDATE: Siemens Industry Software Inc. business licenses (“seats”) can easily cost $30,000+ for each license. There are various levels, e.g., Mach 1, Mach 2, Mach 3, and Mach 4, and the higher-level business licenses mirror the amount they are asking for from John Doe Defendants in their lawsuits, “in order to turn infringing users into genuine customers.”

Have you read enough? Book Now to get help. > > >

As my general understanding goes (from speaking to various individuals at Siemens), Siemens Industry NX software ranges in price from $15,000 – over $30,000 depending on the various modules, licenses, or versions you are purchasing. And, business licenses are significantly more expensive than student licenses, which can be purchased for $99 (and on those student licenses, the receipt will often say, “you just saved yourself $9,999 on this software!” which suggests that the software itself costs over $10,000.

Most “John Doe” Defendants are being accused of using a pirated copy of the “NX Mach 3 Product Design” software. You MUST assume that any Siemens Industry Software Inc. (or “Siemens PLM”) software is being similarly tracked; the list of software owned / provided by Siemens can be found at http://www.plm.automation.siemens.com/en_us/

Have you read enough? Book Now to get help. > > >

SHOULD I HIRE AN ATTORNEY AT THIS LATE STAGE OF THE LAWSUIT?

At this point, three methods of handling your lawsuit are flowing through your mind.

1) Paying the $60K and taking the hit (likely a bad move because I believe this price can be negotiated).

2) Ignoring this (who gets named and served anyway?) and risking the $150,000 judgment. After you, you think you can’t pay $60K, so you can’t pay $150K either. You’ll just take the loss and file for bankruptcy. (Again, bad move because you would have exacerbated the situation. Even if you are named and served as a defendant, it is not too late. There are still ways to salvage the case and get you out of this, minimizing the damage to you).

3) Maybe you can hire an attorney, and he can negotiate this down to something that you feel comfortable paying. And if not, at the very minimum, he can represent you in court with the best result of getting you dismissed from the lawsuit, and the alternative goal of forcing a lower settlement amount. Realistically, your attorney can speak to your plaintiff attorney and negotiate a price that you can pay, or at a minimum come to some resolution to satisfy Siemens Industry Software Inc.’s claims against you.

Have you read enough? Book Now to get help. > > >

So in sum, there are two BAD options, and two GOOD options. The two BAD options are 1) PAY THE ASKING PRICE, 2) IGNORING THE LAWSUIT COMPLETELY. The two GOOD options are either 1) hiring an attorney to NEGOTIATE YOUR SETTLEMENT, and 2) (if settling is not an option, OR if you simply did not do what Siemens Industry Software Inc. claims you did), have that same attorney FIGHT THE LAWSUIT and minimize the damages, or get you dismissed altogether without paying any settlement.

MOST RECENT SIEMENS INDUSTRY SOFTWARE INC. CASES
(as of 3/8/2020)

Cases Filed in the Texas Southern District Court:

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)

Siemens Industry Software Inc. has been suing engineers as “John Doe” Defendants

*UPDATED* LIST OF FEDERAL COURT CASES FILED:

JOHN DOE DEFENDANTS ARE GETTING CAUGHT THROUGH THE *USE* OF THE SOFTWARE, NOT THROUGH THE ACQUISITION OF THE SOFTWARE.

WHO IS THE TARGET OF THESE LAWSUITS.

WHAT IF YOU ARE A STUDENT?

The Engineer-Student Roommate Scenario

In sum, Siemens wants to convert those illegally using their software into customers.

OTHER ARTICLES ON THE SIEMENS INDUSTRY SOFTWARE INC. CASES:

Choosing “the convenient path” before April 5th.

The “cooperative” approach vs. the litigious approach.

What about my April 5th, 2020 deadline? Can I file a motion to quash the subpoena?

Retaining me as your attorney before April 5th is a PREFERENCE, not a requirement.

A quick note about limited time slots and limited availability to speak to you, at least initially.

SIEMENS INDUSTRY SOFTWARE INC. SOFTWARE LAWSUITS — “THEY’RE BACK!”

What happened to the Siemens Industry Software Inc.’s older lawsuits?

WAVE 1

WAVE 2

WAVES 3-4 (2017 – mid-2018)

WAVE 5 (late 2018)

2020 UPDATE:

WAVES 6-7 (2019):

WAVE 8 (2020):

Siemens PLM v. Does 1-100 (TX) and missed deadlines.

The Siemens Industry Software Inc. lawsuit attorneys just missed a deadline to name and serve defendants.

What a dismissal means to your case, and how you should proceed depending on your circumstances.

If the ISP has not yet complied with the subpoena, your contact information is still hidden from the Siemens Industry Software lawsuit attorney.

If the ISP has already complied with the subpoena, your contact information has been shared with the Siemens Industry Software lawsuit plaintiff attorneys.

How the 3-Year statute of limitations for copyright infringement cases suddenly becomes relevant.

Whether your plaintiff attorney is a ‘copyright troll’ or now also becomes relevant.

To a Siemens Industry Software Inc. attorney, you are worth $30K-$60K.

In sum, the case is NOT yet dismissed.

WHY HIRING AN ATTORNEY AT THIS LATE STAGE OF THE LAWSUIT IS A GOOD IDEA.

HOW SIEMENS INDUSTRY SOFTWARE INC. SALES TACTICS MIMIC THOSE OF SELLING AN EXPENSIVE SUIT.

WHAT IS THE TRUE RETAIL PRICE OF SIEMENS INDUSTRY SOFTWARE INC. SOFTWARE?

SHOULD I HIRE AN ATTORNEY AT THIS LATE STAGE OF THE LAWSUIT?

MOST RECENT SIEMENS INDUSTRY SOFTWARE INC. CASES(as of 3/8/2020)

UPDATED LIST OF FEDERAL COURT CASES FILED:

JOHN DOE DEFENDANTS ARE GETTING CAUGHT THROUGH THE USE OF THE SOFTWARE, NOT THROUGH THE ACQUISITION OF THE SOFTWARE.

MOST RECENT SIEMENS INDUSTRY SOFTWARE INC. CASES
(as of 3/8/2020)