In October, Kaspersky Lab terminated its distribution relationship with Hemisphere. According to court documents, Hemisphere claimed the deal had been wrongfully terminated.
During the hearing at the Supreme Court of New South Wales on 14 October 2016, judge Bergin said: "The plaintiff [Kaspersky] claimed that the defendant [Hemisphere] owed it royalties. In late 2015 / early 2016, the defendant entered into a payment regime over a period of months of approximately $100,000 per week in respect of its obligation to pay the plaintiff royalties."
An agreement was reached on 26 July 2016 "that certain credits would be brought to account in the defendant’s 'ledger', on the condition that the defendant would continue with the previously mentioned arrangement of paying $100,000 per week to the plaintiff".
Hemisphere believed that the credits were not brought to account as anticipated and it continued to pay the $100,000 for another two weeks.
CRN reached out to Kaspersky Lab. The company would not comment on the $295,000 debt owed by its liquidated distributor, but told CRN: "Kaspersky Lab is confident that it always acted in accordance with the agreement and fair market practices in its dealings with Hemisphere Technologies, including during the course of the commercial relationship, the termination, and now in ongoing judicial proceedings."
Because of the ongoing legal case, the security vendor said it could not provide additional comment.