Technology Development and License Agreement

CONFIDENTIAL


EXHIBIT 10.14


==============================


TECHNOLOGY DEVELOPMENT AND LICENSE
AGREEMENT


by and between


INTERTRUST TECHNOLOGIES CORPORATION


and


UPGRADE CORPORATION OF AMERICA


==============================


_________________________


August 7, 1996


_________________________


---------- * CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.


CONFIDENTIAL


TABLE OF CONTENTS
----------------- ARTICLE 1. DEFINITIONS AND RULES OF CONSTRUCTION................................... 2


1.1 Definitions............................................................. 2
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1.2 Rules of Construction................................................... 8
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ARTICLE 2. AGREEMENT AND PARTY STATUS.............................................. 9


2.1 Nature and Effect of Closing............................................
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2.2 Addition of SOFTBANK Internet Services.................................. 9
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2.3 Joint and Several Obligations........................................... 9
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ARTICLE 3. TECHNOLOGY ACCESS AND SUPPORT........................................... 9


3.1 Pre-Release Technology Review and Assistance............................ 9
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3.2 Technology Access....................................................... 9
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3.3 Training, Assistance and Technical Support.............................. 11
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3.4 Additional Assistance................................................... 12
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ARTICLE 4. COOPERATIVE PROJECTS AND APPLICATIONS................................... 13


4.1 Cooperative Projects.................................................... 13
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4.2 Potential Cooperative Applications...................................... 13
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ARTICLE 5. LICENSES AND RESTRICTIONS............................................... 14


5.1 License Grant to SSG.................................................... 14
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5.2 Sublicense Rights....................................................... 15
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5.3 No Additional Licenses.................................................. 16
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5.4 General Restrictions.................................................... 16
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ARTICLE 6. SSG SUPPORT AND ADDITIONAL COVENANTS.................................... 17


6.1 SSG Support of InterTrust Technology.................................... 17
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6.2 Customer Agreements..................................................... 19
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6.3 Legends and Notices..................................................... 20
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6.4 InterTrust Trademarks................................................... 21
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6.5 SSG's Use of SSG Trademarks on Cooperative Applications and SSG Products 22
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6.6 SSG Trademarks.......................................................... 22
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ARTICLE 7. LICENSE FEES AND PAYMENT TERMS.......................................... 23


7.1 Fees and Royalties...................................................... 23
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7.2 Payment Procedure....................................................... 25
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7.3 Currency................................................................ 25
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7.4 Taxes................................................................... 25
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7.5 Interest................................................................ 25
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7.6 Audit................................................................... 26
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ARTICLE 8. PROPRIETARY INFORMATION AND OWNERSHIP................................... 26


8.1 InterTrust Ownership.................................................... 26
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8.2 SSG Ownership........................................................... 27
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8.3 Joint Ownership......................................................... 27
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8.4 SSG License to InterTrust............................................... 27
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ARTICLE 9. PROMOTION AND MARKETING................................................. 28


9.1 Joint Press Release..................................................... 28
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9.2 Promotion and Marketing................................................. 28
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9.3 Marketing Program....................................................... 28
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9.4 Technology Advisory Committee........................................... 29
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ARTICLE 10. Partnering Commitments.................................................. 29


10.1 InterTrust Partnering Commitment........................................ 29
10.2 SSG Partnering Commitment............................................... 31
10.3 Additional Provisions................................................... 31
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ARTICLE 11. CONFIDENTIALITY......................................................... 32


11.1 Classification of Technology and Documents For Confidentiality Purposes. 32
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11.2 InterTrust Information.................................................. 32
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11.3 SSG Information......................................................... 34
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11.4 Exceptions.............................................................. 34
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11.5 Confidentiality of Agreement and Publicity.............................. 35
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11.6 Confidentiality of Payments, Audit and Certification Testing............ 35
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11.7 NDA..................................................................... 35
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ARTICLE 12. REPRESENTATIONS AND WARRANTIES.......................................... 36


12.1 Representations and Warranties of Both Parties.......................... 36
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12.2 Representations and Warranties of InterTrust............................ 36
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12.3 Limitation.............................................................. 36
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ARTICLE 13. INDEMNIFICATION AND REMEDIES............................................ 37


13.1 Indemnification......................................................... 37
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13.2 Cumulative Remedies..................................................... 38
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13.3 Equitable Remedies...................................................... 38
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ARTICLE 14. EXCLUSION OF DAMAGES.................................................... 39


ARTICLE 15. TERM AND TERMINATION.................................................... 39


15.1 Agreement............................................................... 39
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15.2 Events of Termination................................................... 39
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15.3 Effect of Termination................................................... 41
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15.4 Survival................................................................ 41
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ARTICLE 16. MISCELLANEOUS........................................................... 41


16.1 Governing Law........................................................... 41
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16.2 Venue and Jurisdiction.................................................. 42
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16.3 Compliance with Law and Export Controls................................. 42
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16.4 Amendment or Modification............................................... 42
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16.5 No Assignment........................................................... 43
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16.6 Notices................................................................. 43
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16.7 Waiver.................................................................. 43
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16.7 Waiver.................................................................. 44
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16.8 No Third Party Beneficiaries............................................ 44
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16.9 No Agency............................................................... 44
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16.10 Recovery of Costs and Expenses.......................................... 44
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16.11 Severability............................................................ 44
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16.12 Counterparts; Facsimiles................................................ 44
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16.13 Force Majeure........................................................... 45
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16.14 Entire Agreement........................................................ 45
---------------- EXHIBIT A............................................................................ A-1


EXHIBIT B............................................................................ B-1


EXHIBIT C............................................................................ C-1


EXHIBIT D............................................................................ D-1


EXHIBIT E............................................................................ E-1


EXHIBIT F............................................................................ F-1


EXHIBIT G............................................................................ G-1


EXHIBIT H............................................................................ H-1


CONFIDENTIAL


TECHNOLOGY DEVELOPMENT AND LICENSE AGREEMENT


THIS TECHNOLOGY DEVELOPMENT AND LICENSE AGREEMENT (this "Agreement") is made and
--------- entered into as of the 7th day of August, 1996 (the "Effective Date") by and
-------------- between:


(i) INTERTRUST TECHNOLOGIES CORPORATION, formerly Electronic Publishing
Resources, Inc., a Delaware corporation ("InterTrust"), with offices
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at 460 Oakmead Parkway, Sunnyvale, California 94086-4708, on the one
hand; and


(ii) on the other hand:


(a) UPGRADE CORPORATION OF AMERICA, d/b/a SOFTBANK Services Group, a
Delaware corporation ("UCA"), with offices at 699 Hertel Avenue,
---
Buffalo, New York 14207-2398, and


(b) to the extent that it becomes a Party to this Agreement pursuant
to Section 2.1 hereof, SOFTBANK INTERNET SERVICES, INC. ("SIS"), a
---
corporation to be formed by UCA from certain business units of UCA.


(individually, a "Party", and collectively, the "Parties") with reference to the
----- ------- following:


RECITALS


A. InterTrust has developed and is continuing to develop a unique, general
purpose architecture for, among other things, rights protection and event
management related to electronic commerce, such architecture including
technologies for clearinghouse, certification and other commerce
administration technologies. InterTrust's technology is designed to support
an interoperable foundation for the electronic marketplace.


B. SSG (as hereinafter defined) is engaged in the business of transactional
systems development, software distribution and related clearinghouse
services, and is interested in: (i) developing comprehensive application
and service models enabling a broad reaching digital marketplace for
electronic content; and (ii) enabling electronic value chain models
supporting cyberspace distribution of software programs and components.


C. SSG, with the assistance of InterTrust, intends to develop electronic
commerce infrastructure tools and services and such Cooperative
Applications as the Parties may mutually agree, and InterTrust intends to
grant SSG certain licenses to use and incorporate InterTrust Technology in
certain products and services as set forth herein.


D. Pursuant to a closing as set forth in Section 2.1 hereof: (i) InterTrust
will issue to UCA a warrant to purchase shares of InterTrust Class B Common
Stock in the form attached hereto in Exhibit A (the "Warrant"); and (ii)
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InterTrust and SOFTBANK Holdings, Inc.,


SSG/InterTrust Agreement _______/_______


CONFIDENTIAL


an entity that owns directly or through an Affiliate a majority interest in
UCA, will enter into a Series B Preferred Stock Purchase Agreement in the
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form attached hereto in Exhibit A (the "Stock Purchase Agreement"). This
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Agreement, together with the Warrant and Stock Purchase Agreements
(collectively the "Other Transaction Documents"), set forth the terms and
conditions with respect to the Parties' relationship contemplated
hereunder.


AGREEMENT


NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the following terms and conditions:


ARTICLE 1. DEFINITIONS AND RULES OF CONSTRUCTION.


1.1 Definitions. In addition to the other capitalized terms defined
----------- elsewhere in this Agreement, the following terms shall have the meanings set forth below:


"Affiliate" of a Person means any Person that controls, is controlled
---------
by, or is under common control with the first Person. For purposes hereof,
"control" means the right to: (i) elect the board of directors or other
similar managing authority; or (ii) generally make or cause the making of
management decisions directly; provided, however, that an Affiliate shall
-------- ------- ----
remain an Affiliate for only so long as such control remains in effect.


"Application Products" means any software tool, template, application
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system or other software product that: (i) is developed using InterTrust
Technology and/or Modified Technology; (ii) directly contains or
incorporates InterTrust Technology solely in the form of Authorized
Application Software, and/or Modified Technology in either Object Code
and/or Source Code in accordance with the licenses granted by InterTrust to
SSG hereunder; (iii) is not enabled to permit the performance of any
Clearinghouse Functions unless InterTrust has otherwise specified in
writing; and (iv) is in Compliance with InterTrust Specifications, except
as otherwise expressly provided in Section 3.2(b) hereof. Notwithstanding
the foregoing, any software tool, template, application system or other
software product specially designed, adapted or developed in whole or in
part to exploit, implement or facilitate the implementation of the
InterTrust proprietary business concepts set forth in Section 4.2 hereof
shall not constitute Application Products, unless developed as a
Cooperative Application.


"Authorized Application Software" means such software representations
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of InterTrust Technology in Object Code and/or in Source Code (solely as
such Object Code and Source Code are identified and designated by
InterTrust on Exhibit B), that are permitted for distribution in accordance
with the applicable licenses hereunder in such form as specified on Exhibit
B, which Exhibit may be amended from time to time by InterTrust in its sole
discretion and that are incorporated in Application Products according to
the terms and conditions of this Agreement.


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CONFIDENTIAL


"Authorized Clearinghouse Provider" means any Person that is expressly
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licensed by InterTrust to engage in specified Clearinghouse Function
activities and services, but only to the extent: (i) of the scope of such
license; and (ii) that such license is valid and in force.


"Authorized Clearinghouse Software" means such software
---------------------------------
representations of InterTrust Technology solely in Object Code form (and
solely as such Object Code is identified and designated by InterTrust on
Exhibit B, which Exhibit may be amended from time to time by InterTrust in
its sole discretion), that are permitted for distribution as incorporated
in Clearinghouse Products, in accordance with the applicable licenses
hereunder.


"Clearinghouse Function(s)" means any one or more activities, as well
-------------------------
as services resulting therefrom, that use any InterTrust Technology and/or
Modified Technology, or use information derived at least in part from use
of such technology, to: (i) enable payment fulfillment or provision of
other consideration (including service fees, product fees or any other fees
and/or charges) based at least in part on a Control Use; (ii) perform
audit, billing, payment fulfillment (or provision of other consideration)
and/or other clearing activities involving more than one Person; and/or
(iii) compile, aggregate, use and/or provide information relating to more
than one Person's use of one or more Secure Containers and/or Content,
including Contents of Secure Containers or any other Content Managed at
least in part using any InterTrust Technology and/or Modified Technology.
Clearinghouse Functions shall include, for example: (a) financial clearing;
(b) providing object registry services and rights, permissions, prices,
and/or other Rules and Controls information for registered objects; (c)
electronically certifying information used with or required by Rules and
Controls, such as authenticating identity, class membership or other
attributes of identity context; (d) providing information based upon usage
auditing, user profiling, and/or market surveying related to more than one
Person's use of one or more Secure Containers and/or Content; and (e)
employing information derived from user exposure to Content, such as
advertising.


"Clearinghouse Products" means any software tool, template,
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application system or other software product that: (i) is developed using
InterTrust Technology and/or Modified Technology; (ii) directly contains or
incorporates InterTrust Technology solely in the form of Authorized
Clearinghouse Software, and/or Modified Technology only in Object Code, in
accordance with the licenses granted by InterTrust to SSG hereunder; (ii)
is enabled to permit the performance of any Clearinghouse Function; and
(iii) is in Compliance with InterTrust Specifications, except as otherwise
expressly provided in Section 3.2(b) hereof.


"Compliance" or "Compliant" means fully consistent with and fully
---------- ---------
conforming to all applicable portions of: (i) the most current version of
the InterTrust Specifications (as defined in Section 6.1(b) hereof)
existing on the date of SSG's first commercial use, distribution, sale or
other transfer of any applicable SSG Product, Cooperative Application or
first use thereof in connection with any service associated therewith, as
the case may be; and thereafter (ii) the most current InterTrust
Specifications in accordance with Section 6.1(b) hereof, as applied to any
such SSG Product, Cooperative Application or service associated therewith.
A SSG Product, Cooperative Application or any service


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CONFIDENTIAL


associated therewith that has not passed any required certification tests
as set forth in Section 6.1 hereof shall be deemed non-Compliant with
InterTrust Specifications.


"Content(s)" means any analog or digital information representing, for
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example, text, graphics, animation, video, digital linear motion pictures,
sound and sound recordings, still images, computer programs or executable
or interpretable components, and data. Content shall include, for example,
any electronic representation of: (i) Rules and Controls; and (ii)
electronic information derived from the Management of Content.


"Content Transaction" means any event or combination of events: (i)
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Managed, in whole or in part, through the use of any InterTrust Technology
and/or Modified Technology; and (ii) in connection with which compensation
(or other consideration) is due or payable to SSG and/or any other one or
more Persons, at least in part, for any (a) sale, rental, lease, license,
vending and/or other comparable provision of one or more rights related to
Content, or (b) use of, including any interaction with, Content (such as
access to Content, including production of modified Content).


"Control Use" means any use of InterTrust Technology and/or Modified
-----------
Technology to Manage Content including initiating and/or otherwise
governing any consequence (electronic, physical or otherwise) related to
the use and/or processing of Content and/or provision of goods or services
conveyed by or associated with such Content. Control Use shall include, for
example: (i) metering, auditing, charging, and/or billing, for access to or
any other interaction with any Content; and/or (ii) administering permitted
and/or prohibited uses of Content.


"Cooperative Application(s)" means any Application Product and/or
--------------------------
Clearinghouse Product that is: (i) developed pursuant to an applicable
Cooperative Application Project Plan in accordance with Section 4.1 hereof;
and (ii) marketed solely under any SSG Trademarks (except where use of
InterTrust Trademarks is also required hereunder, or other trademarks of
Persons are included in a secondary manner to identify technology or
services associated therewith), all in accordance with Section 6.5 and
other provisions hereof. Examples of possible Cooperative Applications
include those applications proprietary to InterTrust and described in
Section 4.2 hereof.


"Core Partner" means any Person (other than a Party) with whom
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InterTrust may directly enter into any agreement or set of agreements as
permitted hereunder, pursuant to which InterTrust directly: (i) provides
early access to InterTrust Technology prior to InterTrust's first
commercial release thereof to the general public; (ii) may undertake one or
more cooperative application projects of a substantially comparable nature
as set forth in Article 3 hereof; and (iii) grants a general purpose
license to use InterTrust Technology and to perform, and sublicense others
to perform, Clearinghouse Functions of a substantially comparable scope as
granted in Sections 5.1(b) and 5.2 hereof.


"Core Technology" means those components of InterTrust Technology
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described by InterTrust on Exhibit B hereto as core technologies of such
InterTrust Technology, as such Exhibit may be amended from time to time by
InterTrust in its sole discretion.


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CONFIDENTIAL ...