Traverse Internet Law Federal Court Report: April 2009 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.


KALEIDOSCOPE IMAGING, INC. v. DESIGNPROJECT, ET AL.
NORTHERN DISTRICT OF ILLINOIS (CHICAGO)
1:09-CV-02421
FILED: 4/21/2009

This case raises the age old issue of what information you can take with you when you leave employment. As a general rule, leaving with any documentation is often risky and can invite a lawsuit, particularly if you are going to work for a competitor.
Kaleidoscope Imaging is a service company that appears to operate as somewhat of an ad agency using state of the art digital technology. The Defendants are former employees of Kaleidoscope and left to begin their own competing business. Both businesses appear to specialize in “product design”. The Plaintiff claims that the Defendants accessed Kaleidoscope’s protected computer system and copied confidential and proprietary information, trade secrets, and other valuable property without authorization.

The lawsuit alleges violations of the Computer Fraud and Abuse Act, trademark infringement, breach of fiduciary duties, unjust enrichment, conversion, trespass to channel, misappropriation of trade secrets, tortious interference with expectancy, tortious interference with contract, breach of contract, fraud, and civil conspiracy. The claim for relief includes a request for the entry of temporary and permanent injunctions prohibiting the use of the information and a monetary award of compensatory damages, punitive damages, costs and attorneys fees. Traverse Internet Law Cross-Reference Number 1311.