caltradesecrets.com

Posts Tagged ‘Court’

Presence of EULA Fails to Convert Reverse Engineering Into an “Improper Means” Within Definition of California Trade Secret Law

In EULA, Improper Means, Reverse Engineering on February 21, 2012 at 3:13 pm
LA2-gutbrod-pressure-cooker-1864

Image via Wikipedia

In an unreported case from the Central District of California, Senior District Judge Ronald S.W. Lew held that plaintiff may not maintain a trade secrets claim for reverse engineering of software code, where plaintiff alleged that a trial version of the software was properly downloaded pursuant to an end user license agreement (“EULA”).  Aqua Connect, Inc. v. Code Rebel, LLC, et al., No. CV 11 5764 RSWL (MANx), 2012 WL 469737 (C.D. Cal.  Feb. 13, 2012).

Background

Plaintiff Aqua Connect, Inc. sued Defendants Code Rebel, LLC and others.  Defendants brought a motion to dismiss plaintiff’s claim for misappropriate of trade secrets.  Id.  Plaintiff alleged that defendants downloaded a trial version of Plaintiff’s Aqua Connect Terminal Server software (“ACTS”) and subsequently reverse engineered ACTS in violation of the End User License Agreement (“EULA”), which defendants had to agree to in order to use the trial version of ACTS.  Id. Plaintiff alleged that defendants misappropriated the trade secrets within ACTS and used that information to create and distribute a competing software product.  Id.


Discussion

Read the rest of this entry »

Advertisements

Central District Issues Rare Opinion Rejecting Stipulated Protective Order

In Protective Orders on August 23, 2010 at 6:47 am
Tire-Euro-Bad
Image via Wikipedia By CHARLES H. JUNG

Magistrate Judge Fernando M. Olguin issued a rare opinion about a stipulated protective order, rejecting the proposed  stipulated order in Murphy v. Continental Tire North America, Inc., No. CV 09-3004 GHK (FMOx), 2010 WL 3260183 (C.D. Cal. Aug. 9, 2010).  The court gave six  reasons for the rejection, including the failure to include a good cause statement (citing Makar-Wellbon v. Sony Elecs., Inc., 187 F.R.D. 576, 577 (E.D. Wis. 1999) (even stipulated protective orders require good cause showing)), lack of specificity in the description of the material to be protected (the parties used conclusory terms such as “confidential technical information”), and duration (“once a case proceeds to trial, all of the information that was designated as confidential and/or kept and maintained pursuant to the terms of a protective order becomes public and will be presumptively available to all members of the public, including the press, unless good cause is shown to the district judge in advance of the trial to proceed otherwise”).   Read the rest of this entry »