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Another setback came in 2003 when it was decided to have a new software C^2. This new software was geared up as a software with more features than Nudi as it made it compatible with OpenOffice. It was also meant to be used as a benchmark to help standardise the software.
This decision was however not accepted by the private software vendors. As Nudi was available for free and had more features than C^2, it was expected that more people would use it. This was the exact opposite of what was carried out by the private software vendors. The software of these vendors were not developed for compatibility and hence people would more likely to use the software that had more features. The private software vendors were also under the impression that people preferred to use the software that was cheaper as everyone had adopted Nudi by this point in time. This led to the software vendors trying to get the community to use their software by offering discounts. This made Nudi more popular even though it was free.
The Kannada software industry was back to square one when it was decided to develop C^2 using the Standard Kannada Script Code. PS Diwakaram, the incumbent Superintendent of Computer Baahubali, a software vendor himself committed suicide in 2001 out of agony over his inability to raise funds. The Government was let down by his suicide and even though he was accused of killing him due to his inability to raise funds, there was no proper investigation on the incident.[2] This had a domino effect on other software vendors. After the death of Diwakaram, his entire family was not interested in the software business and this resulted in all software vendors giving up. This was the darkest period of Kannada software industry. Other than the Government, it was the software publishers who were most affected by these developments.
The Kannada Software Enterprise led by B A Naik initially decided to help the software vendors but did not carry out any development after it realised the difficulties involved in trying to make the software industry sustainable. d2c66b5586
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