Traverse Internet Law Federal Court Report: July 2010 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.


BRITANIC VENTURES 1 LP, ET AL. v. MICHAEL STUART, ET AL.
SOUTHERN DISTRICT OF TEXAS (HOUSTON)
4:10-CV-02604
FILED: 7/22/2010

Trade secrets can very well be the data and information that is gathered in the log files by a website. Access to analytics programs clearly would implicate trade secret issues and the value of the analytics is just becoming recognized and appreciated. As you establish strategic relationships and web partnerships, including hosting and development situations, be very aware of the value of the data and the potential implications if it is misused.

Britanic Ventures is the developer of high-end oceanfront living located in Mexico in the form of a condominium development. Defendants are alleged to have worked together to misappropriate Plaintiffs’ data, confidential and proprietary information, and trade secrets for their own commercial advantage because one of the Defendants was in charge of the Plaintiffs’ website and accessed the information without authorization.

Plaintiffs allege distributing false copyright management information in violation of the Digital Millennium Copyright Act, breach of contract, conversion, misappropriation of trade secrets, harmful access by a computer, tortious interference with existing contracts, tortious interference with prospective relations, breach of fiduciary duty, breach of duty of loyalty, breach of duty of confidentiality, fraud by non-disclosure, conspiracy, violation of the Computer Fraud and Abuse Act, violation of the Lanham Act, violation of the Texas Anti-Dilution Statute, common law unfair competition, violation of the Texas Theft Liability Act, violation of Texas Pen. Code § 33.02, infliction of bodily injury, and offensive physical contact. Relief requested includes declaratory judgments on behalf of the Plaintiff, a temporary restraining order, temporary injunctive relief, preliminary and permanent injunctive relief, actual and consequential damages, statutory damages in an amount of $250,000 for each violation, exemplary damages, attorneys’ fees and costs, and a request for accounting. Traverse Internet Law Cross-Reference Number 1440.

Traverse Internet Law Federal Court Report: June 2010 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.


FREE FOR ALL, INC. and BURT CROWLEY BENEFIT SOLUTIONS, LLC v. MATTHEW FOWKES, ET AL.
DISTRICT OF NEW JERSEY (CAMDEN)
1:10-CV-02927
FILED: 6/10/2010

So many understandings and agreements in business arise in an oral setting in which a formal written memorandum of understanding is absent. This is understandable to some extent given the speed at which deals occur in the online world. However, businesses need to develop a feeling as to what liabilities and downside risks could attach when there are “misunderstandings” as to an oral deal, and seriously consider formalizing agreements in the appropriate circumstances.

The Plaintiffs are in the business of marketing a national pharmacy discount program. The Defendants and Plaintiffs entered into a business understanding and the Plaintiffs now claim that the Defendants began competing against them directly and misappropriated trade secret information.

The Plaintiffs allege trademark infringement, breach of contract, breach of the covenant of good faith and fair dealing, breach of agreement to form a joint venture, oppression of minority member’s interest, common law unfair competition, and breach of fiduciary duty. The lawsuit requests injunctive relief, declaratory relief, and the imposition of a constructive trust. Damages include compensatory damages, treble damages, attorneys’ fees, and any other such relief the Court deems equitable. Traverse Internet Law Cross-Reference Number 1433.