Department store chain Target Australia has terminated its software licensing contract with retail software supplier daVinci during the final year of the three-year agreement.
The retailer is challenging the effectiveness of daVinci’s inventory and merchandise planning software and is seeking a $2.8 million refund for licensing, hosting and professional services. iTnews has reported.
According to a recent court ruling, the relationship between Target and daVinci deteriorated during the last year of the agreement, resulting in Target refusing to pay the third annual software license fee to daVinci.
iTnews quoted Target’s counsel: “Until then, Target had regularly made the licensing and hosting payments and many other payments for specific work requested by Target.”
DaVinci is seeking a $531,707 payment from Target.
Target’s counterclaim seeks reimbursement for all costs incurred with daVinci to date.
The case is expected to go to trial in August 2025 unless a resolution is reached before then.
Judge Anderson of the County Court of Victoria noted that Target considered the services provided by daVinci to be “utterly worthless” after more than two years and had refused to pay when they were invoiced in June 2023.
The retailer filed a deemed termination notice in September 2023.
“The damages that Target is disputing and setting off in defense of daVinci’s claim in the proceedings include every payment it has made to daVinci over the past two and a half years in respect of their commercial arrangements,” the judge added.
In a minor legal victory for Target, the court ordered daVinci to post a $25,000 bond that could potentially contribute to legal costs.
Attempts to reach Target Australia for comment were unsuccessful. A statement from daVinci has also been requested.
“Target Australia terminates $2.8 million software licensing agreement with daVinci” was originally created and published by Retail Insight Network, a brand owned by GlobalData.
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