Traverse Internet Law Federal Court Report: September 2008 Trade Secret Violation Lawsuits

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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.

AGDATA, L.P. v. RAJ GUPTA a/k/a RAAJ GUPTA a/k/a RAJAN GUPTA d/b/a GREEN DATA SOLUTIONS
WESTERN DISTRICT OF NORTH CAROLINA (CHARLOTTE)
FILED: 9/11/2008
3:08-CV-00419

This appears to be a rather involved and extensive employment dispute, but the Trade Secrets Act in North Carolina might very well be the best weapon available. These types of statutes make it very easy to obtain injunctions that are much broader than typically ordered, and trade secret statutes often provide for the recovery of attorney's fees and triple damages. Courts are finding that trade secrets are part of the source code and other coding of applications.
Plaintiff Agdata, L.P. is a Delaware limited partnership operating in North Carolina in the business of providing computer data management services to the health care industry. The Defendant was an employee of Plaintiff’s business. Defendant is no longer an employee but has launched a business competing directly against the Plaintiff and allegedly using Plaintiff's copyrighted "ClaimsREDI" software.

Plaintiff has sued Defendant Gupta for a copyright infringement, breach of contract of an asset purchase agreement, breach of contract of a second employment agreement, violation of the North Carolina Trade Secrets Act, and unfair and deceptive trade practices. Plaintiff requested extensive relief relating to a preliminary injunction, actual damages, lost profits, statutory damages, punitive damages, attorney's fees, and the tripling of all damages. The request for injunctive relief also includes a request that "any online service provider" be immediately ordered to take down a website that is hosting Plaintiff's property. Traverse Internet Law Cross-Reference Number 1225.