Message 'Internal Server Error' from Formidable when docking pen

Question
After writing some notes, I dock the pen, attempting to use penDirector to transfer the stroke data. But even though it isn't a Formidable form, I get an Formidable error message:

Answer
When the Formidable client app is active, both on PC and/or mobile devices, it will attempt to route all pen strokes from the docked pen. To get the strokes routed to another application, the Formidable client task must be shut down.