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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC) -- Ignore unavailable to you. Want to Upgrade?

To: esecurities(tm) who wrote (2236)	8/13/1998 7:55:00 PM
From: esecurities(tm)	Read Replies (3) \| Respond to of 4231

SoftQuad (NASDAQ:SWEBF)(TSE:SKI) [finally] issues news. "...Alpha Software, a division of SoftQuad International, Inc. (NASDAQ:SWEBF - news; TSE:SKI - news), today announced that the arbitrator in a proceeding brought before the American Arbitration Association ruled that Kurzweil Applied Intelligence, a subsidiary of Lernout & Hauspie (NASDAQ:LHSPF - news) breached its contract with Alpha Software regarding marketing and distribution of discrete and continuous voice recognition products that Lernout & Hauspie acquired from Kurzweil Applied Intelligence in 1997. The arbitrator awarded Alpha $400,000 in ''reasonably expected net profits'' for several discrete voice products, and also awarded Kurzweil a total of $780,052 for disputed royalties and cost of goods which Kurzweil had erroneously miscalculated and billed...It is baffling that the arbitrator could expect Alpha to pay for Kurzweil's alleged mistakes.'' The arbitrator declined to award Alpha any damages for lost profits on recently released continuous voice products. ''We're obviously perplexed by the arbitrator's hesitancy to award significant damages,'' says Richard Rabins. ''The fundamental issue in this case was whether Alpha had a contractual right to distribute these products after the Kurzweil acquisition. The arbitrator concluded that Alpha Software did in fact have a valid contract that Kurzweil violated, but apparently chose not to award Alpha any recompense for this breach. We are deeply troubled and shocked that there should be no award of damages after the arbitrator has found that Kurzweil breached a written agreement. At a time when business ethics are a highly visible issue, this decision certainly sends an unfortunate message..." source: &copy 1998 biz.yahoo.com we agree that this was a very troubling if not bizarre ruling...no agreement should ever be entered into with an 'arbitration' clause(.)...jury trial Superior Court PERIOD...the good? news is that SWEBF sustained no legal fees...it was taken on contingency per CFO...