Eastman Group Sues Associated Travel Over Software Joint Venture Agreement

Eastman Group, a Newport Beach software developer, said Wednesday that it has sued one of the nation’s larger travel agency networks for $20 million for allegedly usurping its products.

Eastman accuses Associated Travel Services Inc. in Santa Ana of ignoring a joint venture agreement by licensing its software and failing to turn over a share of the proceeds.

Eastman had developed software that automates bookings for airline tickets and provides electronic mail and facsimile services between airlines and travel agents. It had formed a joint venture with Associated to create AQUA Software Products Inc. to market the software.

But the joint venture was never reduced to writing, said Eastman’s lawyer, Harold R. Collins in Los Angeles, even though the companies continued to share proceeds from the licenses.

Richard Eastman, the software company’s president, said that efforts at arbitration have failed twice and that Associated has told him that he has no rights remaining in the venture.

Eastman said he had worked out of Associated’s office until about 18 months ago when the rift between the companies broke out.

Associated controls AQUA, with a 55% interest to Eastman’s 35% stake, he said. Key officers of AQUA, still based in Associated’s offices, own the rest.

Executives for Associated were not available Wednesday for comment.