The Truth About Carrier Global

Carrier Global investors should take note. The lack of seriousness that Carrier Corporation is exhibiting throughout time poses a serious threat and precedence for small businesses.

Read the Verdict by the Jury

ECIMOS, LLC vs. Carrier Global

Background:

ECIMOS sold software and assembled hardware that enabled quality-control testing of Carrier Corporation HVAC units and provided Carrier Corporation with database storage for the test results. A license granted to Carrier Corporation by ECIMOS for the software included the use of the database-script source code (database code) and the software-scripting language source code (software code).

  • However, the license provided that Carrier Corporation could not copy, reverse engineer, distribute, or create derivative works based on the software. ECIMOS developed more than 27 Million lines of program code for the HVAC/R Industry and marketed it as the HVAC/R Integrated Process Control System (IPCS).
  • The IPCS assembled hardware also manufactured by ECIMOS occupies over 20,000 square feet of the Collierville, TN facility.
  • The IPCS tests 5000 Air Conditioners per day during peak season at Carrier Corporation. The IPCS Packouttm Watchdog prohibits the shipping of non-conforming and unsafe Air Conditioners to its customers.

Court Case: ECIMOS, LLC vs. Carrier Global

Air conditioner manufacturer giant, Carrier Corporation, wrongs small business ECIMOS, by improperly using and stealing their software. Even after a three-year-old court ruling finding Carrier Corporation guilty and prohibiting them from using ECIMOS software, Carrier Corporation now faces an ECIMOS criminal contempt filing for ongoing defiance of court orders that protect ECIMOS Intellectual Property.

Carrier Corporation has had a longstanding relationship of almost 30 years leveraging ECIMOS’ testing software, but come 2015, Carrier Corporation breached their contract and was sued for software theft, breach of contract, and misappropriation of trade secrets.

Carrier Corporation informed the court that it would need relief for only 90 to 120 days to comply beginning on August 10, 2018, and the Court obliged and did provide relief but not for 120 days but all the way till August 17, 2020, a full 2 years later. During those 2 years of relief Carrier Corporation had to pay ECIMOS a meager $ 50 per month per PC for a total of $ 3,000 per month to compensate ECIMOS for being forced to stand down.

The $ 50 per month is what ECIMOS charges its customers that are in good standing to use its software. That meager penalty was levied on Carrier Corporation even though it reported to the Jury that it had $ 247,500,000 of revenue each month of which the Jury determined ECIMOS would be due $ 333,333 for its software’s contribution to the nearly quarter of a billion dollars of revenue each month.

ECIMOS learned from Carrier Corporation counsel that its effort would continue “at its discretion”, undaunted by the Court’s prohibition, ECIMOS’s objections, and the financial losses to its investors.

Due to the ongoing profit that Carrier Corporation is making illegally at the expense of ECIMOS’ software, an additional motion is being filed for $14.66MM in profit disgorgement charges, given Carrier Corporation is now in arrears on $660MM in accumulated profit.

Updated Video About Carrier Global!

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Timeline

We know many details and legal jargon come along with lawsuits so we have broken it down below with a brief background to the wrongdoings and a timeline.
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November 2015

ECIMOS, LLC sues Carrier Corporation, a manufacturer of heating, ventilation, and air conditioning (HVAC units) for breach of contract, copyright infringement, and misappropriation of trade secrets.
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August 2018

Memphis, TN court ruled in favor of ECIMOS awarding them $7.5MM, $1.5MM on the contract breach claim, $1MM for actual damages from copyright infringement, and $5MM for profit disgorgement; both parties appealed.
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August 2018

Court orders Carrier Corporation to create a new software to replace ECIMOS testing software. Carrier Corporation says it needs 120 days but Court leaves request open-ended.
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October 2020

Court certifies a software version that is not infringing on ECIMOS; Carrier Corporation does not fully roll it out
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July 2021

ECIMOS learns that Carrier Corporation still has not rolled out a new software, exhausting stall tactics. ECIMOS files a motion requesting criminal charges and incarceration against CEO, David Gitlin and Carrier Corporation court-designated Corporate Representative, JC Stewart; along with $11.75MM to be paid in criminal sanctions based on the previous court ruling that $250K would be awarded for every week that Carrier Corporation does not comply with the court order.

Scope of Software that Carrier Corporation is Using:

  • The ECIMOS Testing software that Carrier Corporation is ordered to have replaced contains in excess of 27 Million lines of programming code placing it on the scale of Microsoft’s Windows XP Operating system.
  • The ECIMOS Testing Software controls the ECIMOS manufactured assembled hardware at Carrier Corporation.
  • A 6 station sample is shown in operation in this picture but all of the 103 stations occupy over 20,000 square feet in the Carrier Corporation Collierville TN factory.
  • Carrier Corporation manufactures 5,000 A/C per day and for 22 years all were tested by the ECIMOS Testing software prior to shipping to its customers.