Friday, April 17, 2009

Traverse Internet Law Federal Court Report: March 2009 Trade Secret Violations Lawsuits

The facts are unproven allegations of the Plaintiff and all commentary is based upon the allegations, the truthfulness and accuracy of which are likely in dispute.

FILED: 3/17/2009

The lesson from this case, if the allegations are true, is simply that every business should know with whom you are dealing. We see these types of situations often, and in almost every instance the web developer that abandons the project and goes on a mission of destruction has absolutely nothing to lose from a financial standpoint. Do your due diligence and only do business with those that have a strong track record and strong financials.
The Plaintiff was formed in 2007 and provides DVD and high definition download services to retail, mobile, and home markets. The Defendant is alleged to have been an independent contractor and outside technology consultant for the Plaintiff and walked out the door, according to the lawsuit, with copies of all files and documents relating to the technology work he had contracted to perform. In addition, the Defendant is alleged to have unlawfully accessed the Plaintiff’s computer database and transferred five domain names to his own personal account. To make matters worse, the Defendant is alleged to have falsely posted on the websites a notice that the Plaintiff’s website had been removed due to lack of payment. These allegedly false statements replaced a photograph the Defendant had previously put up at those domain names of human feces.

The Defendant has been sued for misappropriation of trade secrets, conversion, defamation, breach of contract, breach of implied covenant of good faith and fair dealing, intentional interference with contractual relationships, intentional interference with prospective economic advantage, and copyright infringement. Extensive preliminary and permanent injunctive relief is requested, as well as an award of compensatory damages, punitive damages, costs, reasonable attorneys’ fees, and other relief. Traverse Internet Law Cross-Reference Number 1305.

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