Lawsuit against Petersen widens

Folio: The Magazine for Magazine Management, August 1, 1996 by Lorne Manly

The lawsuit brought by software development nth degree against Petersen Publishing Co. and World Color Press Inc. has widened to include charges against Softbank, Inc., and its subsidiary, Seybold Consulting Group.

Despite a countersuit from Petersen, nth degree is expected to petition the U.S. District Court for the Central District of California for an injunction to stop the Los Angeles-based publisher from using its software and to keep Petersen and World Color from spreading rumors about nth degree in the marketplace.

The suit and injunction request stem from five software development and/or licensing agreements that Petersen entered into with nth degree between 1992 and 1995. Lake Tahoe, Nevada-based nth degree, which produces magazine-production software, including the Proteus imposition program, claims that Petersen breached the contracts by "failure to pay license fees due to nth degree" - to the tune of $2 million - but continued to use the software. The company recently amended its suit, accusing Petersen and World Color of trade slander, and Seybold Consulting Group of "interference with business relations."

The software maker is seeking a monetary reward on 10 counts, including copyright infringement and breach of contract. The charges of misrepresentation, interference with business relations and conspiracy are a response to industry rumors - allegedly spread by Petersen and World Color - that nth degree was to be sued by Petersen for $11 million, that the company was in trouble, and that its products were not up to par.

The nth degree suit also claims that Seybold and World Color allegedly convinced Petersen to dump its nth degree contracts so that World Color would not have to pick them up when it acquired the Viking Color prepress unit from Petersen.

Petersen, which is searching for a buyer, declined to comment on the allegations. One source says the company's countersuit charges that nth degree misrepresented its ability to produce software. World Color issued a no comment on the case, and Softbank executives could not be reached.