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- Date: Sat, 20 Feb 93 16:38:00 EDT
- From: d.mccauley1@GENIE.GEIS.COM
- Subject: File 5--"Time Bomb" Detonated In Pennsylvania
-
- Time Bomb Detonated In Pennsylvania
- by Dennis McCauley
- copyright, 1993
-
- A Pennsylvania meat packing company has filed a civil action
- in Bucks County Court against its former systems consultant, charging
- that the consultant inserted a software "time bomb" into the client's
- RealWorld financial accounting system.
-
- According to the suit filed on behalf of John Lustig Meats,
- Inc., the consulting firm, Sparrow Systems, Inc. of Lansdale, PA, had
- provided hardware and software support to Lustig for a number of
- years. On May 3rd, 1991, Lustig engaged Sparrow to upgrade the
- company's RealWorld system to the new version 6.0. The contract
- specified customized programming services in addition to software and
- installation charges. Lustig paid Sparrow in excess of $20,000 for
- installation of the upgrade.
-
- On September 15, 1991, Lustig's RealWorld system suddenly
- crashed. It would no longer accept orders, nor would it generate
- customer information, invoices, or receipts. As a result, the suit
- claims, Lustig was forced to handle orders manually, and suffered lost
- profits and goodwill, as well as additional personnel costs, and
- "investigation and analysis" expenses.
-
- The "investigation and analysis expenses" refer to Lustig's
- hiring of a second consultant, who rather quickly found and disarmed
- the time bomb, which was date-sensitive, and had been triggered by the
- system clock.
-
- A brief filed on behalf of Sparrow Systems specifically denied
- that a time bomb was installed on Lustig's system. It is interesting
- to note, however, that in a short article which appeared in a local
- newspaper the day after the suit was filed, Sparrow's president,
- William Mann, was quoted as saying, "We don't have any comment about
- whether we did or did not install a time bomb." Representatives of
- Sparrow Systems have refused comment on the case during preparation of
- this report.
-
- Several uninvolved system consultants indicated that
- installation of time bombs, while not standard practice, was not
- unheard of as a hedge against clients who failed to pay for services.
- A counterclaim filed on behalf of Sparrow Systems alleging that Lustig
- owes the consulting firm $2,700 seems to support this theory.
-
- The case raises serious issues about such practices, including
- the ethical considerations involved in placing a potentially damaging
- software device in anyone's system, much less that of a client.
-
- While Lustig v. Sparrow is a civil matter, it remains unclear
- as to whether criminal action might be an option in similar cases.
- Noted computer crime prosecutor Ken Citarella, of the Westchester
- County District Attorney's Office, indicated that the critical
- question in determining whether a criminal prosecution was warranted
- would be ownership of the software in question. In this case, it
- appears that Lustig purchased the RealWorld upgrade through Sparrow
- Systems, authorizing Sparrow to make certain agreed-upon custom
- modifications, none of which was the inclusion of a crippling time
- bomb. As of this writing, Sparrow still retains the source code,
- pending the outcome of the litigation.
-
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