Traverse Internet Law Federal Court Report: September 2009 Trade Secret Violation Lawsuits

Traverse Internet Law Disclaimer

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.


SLIM GOODBODY CORPORATION AND JOHN BURSTEIN v. STAY FIT PRODUCTIONS, LLC, ET AL.
SOUTHERN DISTRICT OF NEW YORK (FOLEY SQUARE)
1:09-CV-08030
FILED: 9/18/2009

Whether you are a licensor or licensee, it is critical that the contract (license agreement) identify with specificity information that is of a “trade secret” nature. It is also important that the contract specifically set forth how trade secret information will be handled when the contract ends.

The Plaintiff is a leader in delivering health and nutrition related information to children. Defendants are alleged to have entered into a licensing agreement so it could use copyright and trademark protected intellectual property of Slim Goodbody Corporation and also gain access to certain confidential business information including a customer database. The Plaintiff alleges that the Defendants obtained possession of their trade secrets, allowed the license agreement to lapse, and then continued to use the customer database, pricing information, marketing techniques, and other tactics that were trade secrets of the Plaintiff.

The lawsuit includes counts for trademark infringement, false designation of origin and false advertising, unfair competition, misappropriation of trade secrets, conversion, replevin (right to the recovery of the intellectual property), unjust enrichment, breach of contract, and tortious interference with contract. Plaintiff requests the entry of preliminary and permanent injunction against Defendants, an accounting of profits, actual damages, treble damages, punitive damages, attorneys’ fees, costs, and interest, and other just and proper relief. Traverse Internet Law Cross-Reference Number 1357.