Nike is being sued by Quest, a California-based software company, on allegations of copyright infringement. Quest claims that according to its findings during an audit, Nike has been found to be using pirated software keys, available on the internet through unauthorized sites.

It is quite in vogue for a wide array of pirated sources to crack software codes and make them available on the internet. While these are generally visited by regular users looking to save some money, some of the pirated keys are being used by Nike as well.

Quest develops a variety of database softwares, and has a software license agreement in place with Nike since 2001. They maintain a database of all valid keys, and during last year’s audit, the company noticed that not all products were properly licensed and that Nike was using ‘cracked’ versions that are generally circulated on pirated sites. But when Quest approached Nike with their findings, Nike refused to purchase additional licenses required for its setup; leaving Quest with no other choice than taking them to court.

Quest has filed a lawsuit in an Oregon federal court this week, accusing Nike of copyright infringement, and accuses the customer also of breach of contract, and of violating the DMCA’s circumvention provisions. The company is not yet clear on how many pirated keys were used on Nike computers. Nevertheless, it is requesting an injunction that can restrain Nike from any further infringements, and is also hoping to be compensated for the loss they have suffered.

“That audit revealed that Nike had deployed Quest Software Products far in excess of the scope allowed by the parties’ SLA. The audit also revealed that Nike had used pirated keys to bypass the Quest License Key System and made unauthorized copies of certain Quest Software Products by breaking the technological security measures Quest had in place. Upon information and belief, to obtain a pirated key for Quest Software Products, customers must affirmatively seek out and obtain pirated keys on download sites known to traffic in counterfeit or illegally downloaded intellectual property, such as BitTorrent.” Quest wrote in their official complaint, filed at the federal court in Oregon.