SOFTWARE & SOURCE CODE LITIGATION
(Trade Secrets)

The CLIENT, a software developer of database systems for managing municipal records, developed a multi-module system for the intake, indexing, recordation, taxation, clerk access and public access to public records. The system was installed and maintained at the customer location. The customer privately invited a third party software company to reverse-engineer the system and produce a web-based system to compete with CLIENT. The software was not subject to copyright protection and was not patented. We sued the customer and third party developer for trade secret theft as well as related contractual claims.

Upon our advice, the CLIENT discontinued support of the software and systems and the customer was unable to maintain the system. Consequently, public records were not updated, causing problems primarily in real estate transfers and title insurance underwriting for the municipality. An emergency injunction was scheduled. In preparation, more than six depositions were immediately scheduled and taken in as many days. Customer and third party email records were demanded in expedited discovery and turned over for inspection. Depositions of the database programmers focused on the proprietary nature of the database structures and underlying code, comparing the code to software code in the new systems. Depositions of the hardware and systems engineers focused on the hardware designs, server maintenance policies and their effect on the software’s performance. Following a two day injunction hearing, the Court found in favor of our CLIENT. The case settled on favorable terms shortly thereafter.