PerfectData Ends 3-Year Licensing Pact With Head

PerfectData said it ended a 3-year-old licensing agreement with Head Computer Products, claiming that Head failed to pay the company an undetermined amount in royalties.

PerfectData, a Chatsworth company that makes computer cleaning products, said Head, also based in Chatsworth, was to make the payments in return for using PerfectData’s technology for a floppy disk used to clean disk drives. Disk drives are the devices that store and retrieve data in personal computers.

PerfectData President Lee Mannheimer said no royalties have been received. He added that he does not know how much money the company is owed because he has not reviewed Head’s sales figures.

The two companies previously tangled in a patent infringement suit brought by PerfectData that was settled in March, 1986.

Stanley Eyler, president of privately held Head, said he sent a royalty check for about $500 to PerfectData. Mannheimer said he never received it.

Eyler accused PerfectData of trying to get out of the licensing agreement so that it can do more business and put Head out of business. Mannheimer denied Eyler’s accusation, adding that Eyler reneged on a promise to resend a royalty check.

In the year ended March 31, PerfectData lost $946,000 as sales fell 25%, to $4.1 million.