Traverse Internet Law Federal Court Report: October 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.

BRIGHT IMPERIAL LIMITED v. WEB ENTERTAINMENT GROUP INC., ET AL.
CENTRAL DISTRICT OF CALIFORNIA (LOS ANGELES)
2:09-CV-07840
FILED: 10/27/2009

A “Confidential Memorandum” is just like a business plan. Any time you put such a document out expect that it could become a matter of public record splattered all across the web in a matter of minutes. Consider in advance what effect, if any, that the disclosure will have on your existing business and be very careful.

The Plaintiff is a Honk Kong limited liability company that owns an adult “tube” website. The RedTube Website is the 67th most trafficked website in the world as of October 21, 2009. In early 2008 the Plaintiff considered selling the website and prepared a “Confidential Memorandum” containing extensive trade secret and proprietary and confidential information. The Defendants are alleged to have disclosed the Confidential Memorandum into the public arena and disrupted existing and potential advertising revenue.

The lawsuit includes counts for unfair competition and false designation of origin, trademark dilution, common law trademark infringement and unfair competition, violation of the Anti-Cybersquatting Consumer Protection Act, breach of contract, misappropriation of trade secrets, intentional interference with contractual relations, intentional interference with prospective economic advantage, and violation of California Civil Code 1709 and 1752. Plaintiff requests the entry of preliminary and permanent injunction against Defendants, transfer of any infringing domains to Plaintiff, return of any and all copies of the “Confidential Memorandum”, compensatory damages, disgorgement of profits, enhanced damages, exemplary damages, punitive damages, attorneys’ fees, costs, and interest, and other just and proper relief. Traverse Internet Law Cross-Reference Number 1371.