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"Advil for Software IP Headaches" Offered By Palamida

IP Asset Manager for Large Corporations Snags $5 Million Funding

The latest start-up, Palamida Inc, has managed to combine the commercial launch of its software IP asset manager for large corporations with a $5 million round of funding from marquee investors.

It will compete against Black Duck, Serena Software and service providers that do custom work.

With corporations now routinely using third-party open source and commercial software components in software development, it's getting hard for them to get a clear picture of who owns what IP in their core applications.

The situation is complex and risk-laden because of all the various licenses and obligations associated with third-party components. And then there's the ever-looming risk of being sued.

This is where Palamida comes in.

The San Francisco start-up is promising the Fortune 500 that its IP Amplifier will give them insight into the third-party open source and commercial components inside their mission-critical code base.

Palamida co-founder Theresa Bui Friday says IP Amplifier will automatically detect the third-party open source and commercial components, associate the components with their licenses and explain how and where the components are being used.

IP Amplifier 3.0 (earlier versions were beta releases) consists of two key modules - a Compliance Library and a Detector.

The Compliance Library is supposed to hold billions of source code snippets and millions of files of the most commonly used open source products. Palamida calls it Amplifier's brain trust. Customers can enhance the library by adding licensed components and custom metadata such as patent associations and component-specific royalty obligations.

By scanning a customer's code base and comparing it against the Component Library, the Detector module is supposed to identify potential license issues in the code base. The module can reportedly analyze binary code, source code, images, icons, archives, XML and text documents.

IP Amplifier supports Windows, Linux, Solaris and Mac OS X as well as Java, C, C++, C#, Visual Basic, PHP, Perl, Python, Java Script and XML.

IP Amplifier will be licensed on an annual subscription basis for an unlimited number of users. For companies with up to 20 in-house developers, it will cost $20,000; for 21-60 developers it's $40,000; for 61-100 developers it's $60,000.

Customers will get periodic updates of the Component Library to track new components.

Paying for the launch is the company's Series A funding, which came from Hummer Winblad and WaldenVC. Palamida plans to use the money to drive growth. Stanford University is also a small investor.

Palamida claims four Fortune 500 customers are using its product but shied away from disclosing their names citing NDAs.

By the end of this year, the company expects to have an Amplifier version for small and mid-sized businesses.

Besides Bui Friday, Palamida's other founders are Ray Waldin and Jeff Luszcz. The three worked together at Cacheon, where they apparently ran into the very IP issues they are now trying to solve for others. Bui Friday said that after an application development project at Cacheon was finished, they discovered a piece of GPL code that would have prevented the company from getting downstream royalties, a nasty situation.

Palamida, which was born in 2003, expects to cross the golden threshold of profitability early next year. The 10-man outfit expects to triple its headcount by Christmas.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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Most Recent Comments
$5M Buys Reach? 02/20/05 09:21:48 AM EST

||| IP Amplifier supports Windows, Linux, Solaris and Mac OS X as well as Java, C, C++, C#, Visual Basic, PHP, Perl, Python, Java Script and XML. |||

Somehow this seems almost *too* comprehensive. How can a start-up have such wide reach?

rivals 02/20/05 09:02:42 AM EST

Black Duck has the nicer name! :)