Feud Heats Up between Virus Foes

McAfee promises to hit back with a lawsuit of its own after Symantec expands allegations of stolen code.

The dispute between two leading computer-virus foes grew uglier Tuesday when McAfee Associates said it will file suit against Symantec for defamation and business interference. The news follows Symantec's announcement Monday that it is seeking to amend an earlier complaint against McAfee over alleged piracy of software code.

"Symantec's allegations are without merit and we continue to ship all McAfee products," Peter Watkins, McAfee's general manager of network security, said in a statement. "In light of Symantec's behavior, McAfee has ceased discussions with Symantec until further notice. In addition, we will vigorously pursue all legal remedies."

Tensions between the two companies have risen since Symantec made its original complaint on 23 April charging that McAfee's PC Medic anti-virus software contained code elements from Symantec's Norton CrashGuard product. On Monday, Symantec also alleged that McAfee's VirusScan and PC Medic 97 contain pirated code. Representatives of both companies could not be reached to elaborate on the situation.

McAfee said it will file a contempt-of-court motion against Cupertino, California-based Symantec for allegedly engaging in bad faith negotiations. The company said both sides had been obligated to abide by a court order not to discuss the case publicly - an order that was violated, McAfee charges, when Symantec issued its press release Monday.

Santa Clara, California-based McAfee said it will seek unspecified compensatory and punitive damages related to Symantec's actions. A hearing is scheduled for 29 August, at which a judge will decide whether to issue a preliminary injunction stopping McAfee from shipping products with the disputed code.

"Ultimately, customers are the losers in cases involving technology theft because they don't get the best products for their money," said Enrique Salem, Symantec's chief technology officer. "The most competitive offerings do not result from cloning, copying, or theft. They result from innovation."

On Monday, McAfee reported net income of almost US$24 million for the quarter ending on 30 June, up from $9.4 million a year earlier. Revenue for the quarter reached about $86.3 million, an increase of 112 percent from the year before.