Unpaid share of revenue flow from software application

The Client

Mid-sized software company.

Value of Dispute

£350,000

The Commercial Dispute

A software company entered into a joint venture with a large property management consultancy, allowing its application to be commercially exploited in return for a share of the revenue flow from it. However, the software company did not receive any revenue, and they were left unpaid. 

The software company believed that the consultancy firm had generated revenue from the product, and requested information to verify that this was the case. However, this information was not forthcoming.  

The software company’s incumbent lawyers were instructed to gather the necessary information to determine the amount owed, but the property management consultancy refused to engage. At this stage, the company decided to engage Escalate.

How Escalate Resolved – Services Used

There was no initial movement from the defendant during the Escalate mediation process, other than an attempt to encourage the claimant to walk away with a £40,000 settlement offer. 

The software house rejected this and, as the defendant was still unwilling to provide the information needed to assess the full revenue potential, Escalate issued at court for full disclosure. Unlike in a traditional dispute, the cost of this action was covered by Escalate, so the client did not incur any upfront disbursements.

After we issued for full disclosure, the defendant admitted to owing £350,000 in unpaid share of revenue flow to the software company, and settled the case.