Allscripts in Legal Battle With Pegasus Imaging Over Bar Coding Software – David and Goliath At Battle
Posted Feb 24 2010 10:17pm
This is an interesting series of events and if Allscripts did in fact take and use the software from the small company Pegasus, then some licensing revenue should be in order. It may not be at $400 a copy, but at least make some offer and meet with the company. What software is being used and how is the questions. Allscripts bought a company that was a customer of Pegasus and claimed they had a license for it. I can understand the frustration though when you go to a convention and see your software at work with no clue that it had been either fully or partially utilized.
Bar coding too has evolved so I wonder if this technology is still useful or getting old due to new methodologies with 2D tags? BD
Such is the crux of what Berlin calls a David v. Goliath lawsuit about to play out in federal court in Tampa over software now being used in digital medical records across the country.
On one side: Pegasus Imaging Corp., Berlin's 55-employee company on Martin Luther King Boulevard that makes software to process images like X-Rays and digital camera photos. Sales last year, about $19 million.
On the other side: Chicago-based Allscripts-Misys Healthcare Solutions, a medical electronics giant whose sales grew 43 percent last year to $548 million.
Allscripts officials say they can't comment on pending litigation.
The mix-up may have begun eight years ago. That's when, Pegasus signed a deal with a company called Advanced Imaging Concepts to use Pegasus software to read bar codes. For instance, the codes could tag a physical X-Ray to a patient's virtual record, so it's available to any doctor in a medical system.
Berlin says he's tried to work out a settlement, but after 18 months of phone calls and delayed meetings, he feels Allscript officials are dragging their heels and trying to run up his legal fees. At $350 to $400 per copy of the software, Berlin thinks Allscripts could owe him $60 million or more in license fees – a lot for a company with 55 employees.