Reuters must lose IM software

NEWS AGENCY REUTERS has been ordered to remove a crucial layer of software from its instant messaging service.

The move will stuff up communications within dozens of stock brokerages and banks and comes about because the outfit was two weeks late with its final licensing payment to Silicon Valley software maker Face Time Communications.

After paying $1.3 million to Face Time as part of a two-year contract, Reuters could have nailed down the permanent right to use the software by making a $150,000 payment by January 31 this year.

But Reuters didn't wire the cash until February 15 two days after Face Time sent a letter notifying the company that the previous deal had expired.

Now it is left without the software, and is short of the $150,000 it paid up late. It might also have to come up with another million to renegotiate the licence it nearly owned.

Reuters used Face Time's computer coding as part of an instant messaging service that has been flogged to about 100 customers.

It is designed to provide security against computer hackers and tools to comply with a variety of government regulations.

Reuters company executive, Eran Barak, warned that losing the technology would be devastating.

For its part Face Time said it was willing to negotiate a new licensing agreement. µ

L'Inq
AFP