A COMPANY that says it provides anti-virus protection for 850 million mobile phones has obtained a temporary High Court order preventing the appointment of a liquidator to one of its key software suppliers.

Adaptive Mobile Security Ltd, with headquarters in Dublin, contends Anam Mobile Ltd, South Cumberland Street, should not be allowed appoint a liquidator until Anam releases source code for crucial software to Adaptive enabling it continue providing anti-virus products to some of the world’s largest mobile phone operators.

Source code is a collection of computer instructions used by programmers to understand or modify a particular program or piece of software.

Adaptive says the Anam source code is used in the products it provides to ensure mobile phone networks are protected from viruses, spam and rogue applications. About one in six phones, or 850 million users, are protected by its product, it says. Adaptive claims the viability of its business, which saw revenue grow from €6 million to €18.5 million in the last two years, is at risk from Anam’s alleged failure to comply with an agreement concerning the source code in the event of a winding up of Anam.

Ms Justice Mary Laffoy yesterday granted Adaptive an interim injunction restraining Anam, members of its board and its creditors from passing a resolution to wind up the company and appointing a provisional liquidator. She also directed Anam, pending further order, to transfer the latest version of the source code to an escrow firm, an agent who holds the code as a third party on behalf of both companies.

Thomas Montgomery, solicitor for Anam, opposed the injunction application but said his client was prepared to hand over the latest version of the source code to the escrow agent within an hour.

Mr Montgomery said his side believed Adaptive was seeking material, including documentation and technical information, over and above what had been agreed last August. Rossa Fanning, for Adaptive, said agreement had come about as a result of Anam’s “dire financial difficulties” when Revenue petitioned to have Anam wound up for unpaid taxes.

Adaptive had agreed to provide €200,000 to Anam so that Anam could continue trading and Adaptive would not lose a crucial supplier, counsel said. As part of that deal, the companies entered into a new interim agreement whereby, in the event of Anam’s insolvency, break-up or disposal, Adaptive would be entitled to access the source code. However, Adaptive had learned of a meeting of Anam’s creditors, called for yesterday afternoon, counsel said. As a result of this “clear breach” of contractual arrangements, Adaptive was seeking the urgent injunction to prevent the creditors winding up the company.

In an affidavit, Brian Collins, chief executive of Adaptive, said his company employs 60 people in Dublin and another 65 around the world, and is in the process of expanding the workforce to 170.

The damage that could be visited on Adaptive as a result of the failure of Anam to comply with last August’s agreement was “of such a massive scale” as to raise concerns about his company’s future viability, he said.