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Cyncly files IP infringement claim against former Fusion reseller SHD AG

Protecting the intellectual property (IP) vested in a company is crucial to creating and maintaining market-leading solutions. This is particularly true in an increasingly digital environment reliant on smart and efficient software solutions. Against this background, Cyncly has taken the decision to seek judicial clarification in a dispute relating to the assumed use of its proprietary software applications by a former partner and distributor of KPS designstudio without adequate authorization.

Rimbach, Germany and London, UK, August 22, 2024 – Cyncly, a leading global provider of software and content solutions that help make amazing spaces for living, today announced it has initiated legal proceedings before the Regional Court of Frankenthal in Germany, which has dedicated jurisdiction over copyright cases. Parties to the lawsuit are 20-20 Technologies Limited, a Cyncly group company (“Cyncly”) as plaintiff and SHD Kreative Planungs-Systeme GmbH (“SHD”) as defendant.

Cyncly seeks to protect its significant investment in developing a market-leading technology against unauthorized use. The filing describes clear indications that a former partner and distributor continues to make use of Cyncly software, notably a tool called Catalogue Editor, beyond its remaining authorization.

Catalogue Editor is used by content creators to produce and maintain an electronic representation of a given manufacturer’s catalogue, containing the full range of their products in all available styles, colors and materials, each accurately drawn and correctly priced. Users of KPS designstudio (the ‘white-labelled’ name of 2020 Fusion in SHD’s previously-licensed operating territories) can then use these catalogues to create professional designs and quotations for their customers. The unauthorized use described in the claim includes SHD’s continued maintenance of existing catalogues for customer use within the KPS designstudio software, as well as the use of Catalogue Editor and its associated tools to facilitate the migration of catalogues to other non-Cyncly platforms.

Cyncly's decision to file substantive proceedings instead of an interim injunction was made to ensure minimal disruption to any potentially impacted stakeholders in the region, including the existing KPS designstudio install base.

Prior to this filing, Cyncly pursued an amicable solution to the issue, which unfortunately did not achieve a resolution. The now-pending court proceedings will bring clarity for both sides as well as for current and future customers. The Regional Court of Frankenthal will now analyze the case and deliver a decision on whether SHD must cease and desist from using Cyncly software tools in the present manner. Claims for disclosure of information, report on accounts, inspection and damages are also at stake. Cyncly anticipates that the first instance judgment may arrive approximately 12 to 18 months after the filing. This period, and any subsequent process of enforcement, will allow all stakeholders to consider, prepare and implement measures they deem sensible.