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Justice Department Seizes Software

In 1982, Inslaw, a small computer software maker under contract with the U.S. Department of Justice, delivered its Prosecutor's Management Information System (PROMIS) software to the Justice Department. The software was designed to help prosecutors track complex investigations. Once PROMIS was delivered to the U.S. Attorney General's office, the Justice Department refused to pay Inslaw the $10 million owed, forcing the company into bankruptcy, after which the Justice Department seized the software.

House Judiciary Committee, U.S. House of Representatives,
Tuesday, August 11, 1992
Statement of Representative Jack Brooks (D-Texas), Chairman

REP. BROOKS: The last item on our agenda today is the consideration of the investigative report "The Inslaw Affair," which without objection will be considered as read.

This report describes the Committee's investigation into serious allegations that high-level Department of Justice officials were involved in a criminal conspiracy to force Inslaw, a small computer company, out of business and steal its primary asset--a software system called PROMIS.

Based on the Committee's investigation and two separate Federal court rulings, the draft report concludes that high-level Department of Justice officials deliberately ignored Inslaw's proprietary rights in the enhanced version of PROMIS and misappropriated this software for use at locations not covered under contract with the company. Justice then proceeded to challenge Inslaw's claims in court even though it knew that these claims were valid and that the Department would most likely lose in court on this issue. After almost seven years of litigation and $1 million in cost, the Department is still denying its culpability in this matter.

Unfortunately, instead of conducting an investigation into Inslaw's claims that criminal wrongdoing by high-level government officials had occurred, Attorneys General Meese and Thornburgh blocked or restricted Congressional inquiries into the matter, ignored the findings of two Federal courts and refused to seek the appointment of an independent counsel. These actions were taken in the face of a growing body of evidence that serious wrongdoing had occurred which reached the highest levels of the Department. The evidence received by the Committee during its investigation clearly raises serious concerns about the possibility that a high-level conspiracy against Inslaw did exist and that great efforts have been expended by the Department to block any outside investigation into the matter.

Based on the evidence presented in this report, it is clear that extraordinary steps are required to resolve the Inslaw issue, the report recommends that the Attorney General take immediate steps to renumerate Inslaw for the harm the Department has egregiously caused the company. It also recommends that an independent counsel be appointed with broad powers to investigate all matters related to the allegations of wrongdoing in the Inslaw matter.

In my view, Congress and the executive branch must take immediate and forceful steps to restore the public confidence and faith in our system of justice which has been severely eroded by this painful and unfortunate affair. I therefore urge all members to support the adoption of this report.