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ARTICLE · 25 AUGUST 1998

Year 2000 Lawsuits Begin

United StatesIntellectual Property

By David M. Nadler and Kendrick C. Fong

As the year 2000 approaches, industry analysts and experts predict that beleagured businesses and disgruntled shareholders will bombard the courts with lawsuits concerning the year 2000 date change problem and whether products and internal systems are year 2000 compliant. Indeed, these analysts predict that total year 2000 litigation costs could exceed $1 trillion. The vanguard year 2000 case is Produce Palace International vs. TEC-America Cash Register Inc. and All American Cash Register Inc., which was filed recently in Michigan states court.

The year 2000 date change problem is a design defect in the COBOL programming language, which was developed 30 years ago. To save limited and costly memory space, COBOL developers decided to use only two digits to indentify calendar years. Accordingly, 1997 was identified as "97" within COBOL programs, and 2000 was designated as "00," which could also be read as 1900.

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