Xspect Solutions Reaches Negotiated Settlement With Hexagon Metrology In Lawsuit Involving EX-PCDMIS Software Developer

PCDMIS Software Engineer, employed by PCDMIS Developer Wilcox & Associates, failed to inform of Non-Compete Employment Clause when soliciting employment with Xspect Solutions; ex-employee actions results in withdrawal of Xspect employment offer and subsequent filing of Lawsuit against both former employee and Xspect Solutions, Inc by Hexagon.

Xspect Solutions, Inc., a subsidiary of Wenzel Prazision, GmbH, and the largest and fastest growing family owned CMM manufacturer has agreed to certain terms following unproven accusations cited in the original lawsuit filing.

Under the terms of the settlement Xspect Solutions, Inc has agreed to the following:

• Not to solicit the employment of Hexagon technical personal; all other Hexagon employees are free to be engaged in lawful employment by Xspect and Wenzel Group Companies. This limited restriction, in any event, is only in force until February 2011.
• From developing any PCDMIS TRANSLATION utility and developing, marketing or selling any PCDMIS EXECUTION utility until February 2010. Xspect Solutions and Wenzel Group Companies are permitted to continue its successful marketing and sales efforts of a 3rd Party developed PCDMIS Translation software. Such products allow existing PCDMIS customers to migrate their existing inspection part programs into the ISO Standard DMIS format thereby unlocking the programs to be executed in the highly respected Xspect Solutions OpenDMIS software or any other metrology Software fully supporting the DMIS International Standard CMM programming language allowing full and seamless interoperability. DMIS is both vendor and technology independent. www.dmis.org
• Xspect Solutions is free to release any new versions of software with an imbedded PCDMIS Translation and/or PCDMIS Execution utility. However if the release occurs prior to July 2011 it agrees to provide a one month advance notice of release to Wilcox and submit user manuals, comprehensive documentation and a temporary demonstration license to Wilcox for evaluation.
• Xspect Solutions has warranted that it does not have, nor did it ever have any confidential, proprietary or trade secret information belonging to Hexagon or its Group Companies. Nonetheless, Xspect Solutions further agreed to refrain from ever developing any product or providing any services involving the use of Wilcox's, Hexagon Metrology, Inc.'s, or Hexagon Holdings, Inc.'s confidential, proprietary, or trade secret information or property.

Under the terms of the settlement Wenzel Group GmbH & Co. KG, Wenzel Prazision GmbH, and Wenzel Metromec AG have agreed to be enjoined, directly or indirectly.

The ex-employee of Wilcox & Associates, who never actually commenced employment at Xspect Solutions, has agreed to be bound by a separate set of terms in the joint settlement agreement.

Xspect Solutions, founded in 2002, has carved-out a significant market share for Wenzel Coordinate Measuring Machines (CMM) in the USA market; the CMM market is mature and has not grown for many years and thus Wenzel's market share has been secured at the expense of the traditional CMM supply base; much of which has been consolidated into a single entity by Hexagon over the past decade. Wenzel Customers, for its intrinsically accurate, metrology stable of CMMs include John Deere, General Electric, Messier Dowty, Boeing, Honda, Karmann, Electro-Motive, Delphi, Magna, Tesla Motors, Unison and is a major supplier of high accuracy CMMs to the Wind Energy industry. In addition Xspect Solutions is involved in the redeployment of pre-owned CMMs as manufacturing industries consolidate, and is the world's largest supplier of used CMMs under its Xsperienced brand name. The redeployment of remanufactured CMMs by Xspect has further negatively impacted the demand for new CMMs from the USA market.

Xspect Solutions new Wenzel and Xsperienced CMMs are supplied with the 32 bit CAD immersed OpenDMIS software which runs the DMIS Standard as its internal programming language ensuring a customers investment in inspection part programs is not ‘locked' inside proprietary metrology software preventing seamless interoperability. The lack of interoperability in the metrology industry is estimated to cost manufacturing industry in excess of $600 million annually. (Source AIAG – Automotive Industry Action Group)

SOURCE: Xspect Solutions