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Merge Healthcare has announced the implementation of Authentic eFilm(TM), a software amnesty program to help organizations comply with license agreements for eFilm Workstation(TM).

Merge Healthcare, (NASDAQ: MRGE) (TSX:MRG), a leading medical imaging software and services provider, announced the implementation of Authentic eFilm(TM), a software amnesty program to help organizations comply with license agreements for eFilm Workstation(TM) and to address unauthorized use of the software. Further, the Software & Information Industry Association (SIIA) announced that Merge Healthcare has joined as a new member. As the software and digital content industry’s principle trade association, SIIA works with members to successfully thwart software piracy.

Since 2003, more than 100,000 copies of eFilm Workstation have been downloaded from Merge Healthcare’s web site, making it one of the most widely used DICOM-based diagnostic imaging desktop systems in the world. Clinicians use eFilm Workstation™ (an FDA-approved Class II Medical Device) to view digital MRI, CT, X-ray and other images to diagnose and recommend patient treatment. Product development of eFilm follows FDA guidelines and undergoes rigorous testing to ensure functionality within specified technology environments. Merge modifies and enhances the solution as environments change, and provides updates to customers. These updates may not be reaching users of pirated or unsupported copies, which could increase the risk of individuals using software that does not meet the high standards of the medical imaging industry.

"We value our eFilm customer base, and hope to convert all of the non-compliant users into authorized users of the current and most robust version to date. We believe there are users of unauthorized copies of eFilm that may not be aware of the implications of using unlicensed or unsupported versions of the software. This initiative supports clinicians, and ultimately the safety of patients, by helping to ensure safe and effective use of what we consider to be the world’s best stand-alone diagnostic imaging workstation," said Nancy Koenig, President of Merge Fusion.

Under the Authentic eFilm program, Merge requests eFilm users with license validity concerns to complete a software audit form by December 31, 2008. Forms and information are available at www.authenticefilm.com. Participation in this process will enable organizations to validate compliance with end-user licenses, including verification that they are not using pirated versions, shared software, multiple installations or expired licenses. Users who discover they are non-compliant have the opportunity to purchase a license without penalty during the amnesty period, which expires on December 31, 2008. Academic and charitable organizations may apply for discounted eFilm software from Merge by completing an application from the www.authenticefilm.com web site.

On January 1, 2009, SIIA will begin auditing organizations that are reported to the SIIA as being non-compliant with eFilm licenses. Consistent with usual practices, the SIIA will seek damages against organizations with illegal copies of eFilm Workstation or copies exceeding those allowed by license. Organizations may potentially be liable for penalties such as damages up to three times the software’s value. SIIA will also require the organization to purchase a current license from Merge Healthcare.

"Piracy robs legitimate software developers of resources for ongoing development and support of innovative products. SIIA members are from many industries, but Merge Healthcare is the first pure-play medical software vendor to join our Anti-Piracy Program. We look forward to working with Merge as we continue educational and legal initiatives to combat software piracy," stated Keith Kupferschmid, SIIA’s SVP for Intellectual Property Policy & Enforcement.