Lawsuit Accuses Santa Clarita Council Candidate of Copying Software

A candidate for Santa Clarita City Council who owns a computer company has been accused of illegally copying and distributing computer programs in a civil lawsuit filed by some of the nation’s largest software publishers.

Gary Johnson, 39, who owns Consolidated Micro Services, on Thursday denied the charge filed in December by five software publishers, including Microsoft Corp., Lotus Development Corp. and WordPerfect Corp.

Johnson is one of 16 candidates running in the April 14 race for two seats on the council.

“You can be accused of many things, but having facts is another,” Johnson said in a brief telephone interview. “Believe me, I’d love to open my mouth and shout it all out, but I can’t.”

Attorneys for the five firms contend they have strong evidence against Johnson, including what they say are more than 50 illegally copied computer programs seized from Johnson’s Valencia offices during a Dec. 12 search of the premises by federal marshals. The surprise search was authorized by a federal judge after two former employees of Johnson’s reported the alleged computer piracy to a trade group that includes the plaintiffs, said William R. Hill, an attorney representing the software publishers.

Hill said the search uncovered what he believes are invoices showing that illegally copied programs were given to customers who bought computers.

Federal copyright laws prohibit the unauthorized duplication of computer programs. American software firms lost an estimated $2.4 billion in 1990 because of computer piracy, said Peter Beruk, litigation manager for the Software Publishers Assn., a trade group.

Federal copyright laws allow for private firms to sue violators, but carry no criminal penalties.

In 1988, the association began cracking down on the practice, installing a toll-free telephone number for whistle-blowers and filing 100 lawsuits against copyright violators--winning 99 of them--Beruk said. The group has also conducted about 80 confidential audits, in which companies voluntarily replace pirated software with legal copies, he said.

The case against Johnson was scheduled to be heard today in U.S. District Court in Los Angeles, but the hearing was postponed until April 24 because attorneys are trying to reach a settlement, Hill said. Johnson could face a minimum of $500,000 in penalties if he loses the case, Hill said.