TradeSecret
Latest
Children's tablet maker suing Toys R Us over Tabeo design
Currently lawsuits are all the rage in the tech industry, however it's somewhat of a sad day when the ill-effects of corporate hardball trickle down to children's toys. Nabi tablet maker Fuhu filed a lawsuit at a San Diego, California federal court claiming that mega retailer Toys R Us stole its product's trade secrets for the development of its forthcoming Tabeo tablet for children. Fuhu alleges that last year Toys R Us agreed to exclusively carry the Nabi tablet in order to gain access to confidential information before launching a tablet of its own. The partnership between the two companies ended in January and Toys R Us has since announced its plans to release its Tabeo tablet this fall. Fuhu is suing for an undisclosed sum and requesting that Toys R Us relinquish its stock of Tabeo tablets. It's too early to tell if this lawsuit will have an impact on the Tabeo's launch plans, but if Fuhu has its way, Toys R Us will receive a lump of coal and a court order this holiday season. Bah, humbug!
Paypal v. Google: a tawdry tale of trade secret misappropriation
Google and its poached Paypal employees got sued for trade secret misappropriation yesterday, but we didn't know the dirty details until now. A peek at PayPal's complaint reveals there's a bit more to the story. Apparently, Paypal and Google were in talks last year to use PayPal for payments in the Android Market. Osama Bedier was in charge of those negotiations for PayPal in October of 2010, when the deal was supposed to close, but was allegedly interviewing for a mobile payment position at Google at the same time (holy conflict of interest, Batman!). The complaint claims that Bedier initially rebuffed El Goog's advances, told PayPal of the job offer and professed that he would stay, but jumped ship a month later (bringing some PayPal coworkers with him) after being recruited by Stephanie Tilenius and the almighty dollar. Once it hired Osama, Google reportedly put the brakes on the PayPal deal and created Google Wallet. Then Google, Bedier, and Tilenius got slapped with a lawsuit. A brief rundown of the legal claims awaits you after the break.
Motorola sues Huawei and several former employees for stealing wireless trade secrets
Man, if you thought the lawsuit action in the mobile space was crazy before, well, you ain't seen nothing yet -- Motorola just sued Huawei and over a dozen former employees for conspiring to steal its wireless trade secrets and other proprietary technology over a period of years starting in 2001. Yeah, it's crazy. The lawsuit was originally filed in 2008 against four former Motorola engineers and a company called Lemko, all of whom Motorola accused of conspiring to stealing trade secrets related to wireless technology. After years of discovery in the case, it appears that Motorola realized the conspiracy went much deeper than it originally thought, leading the company to file a new complaint on July 16th, in which it named Huawei and nine additional former employees, who allegedly schemed to steal plans for a 3G base station called the SC300. According to the complaint, part of the scheme was ultimately blown up when one of the employees was arrested by Customs at O'Hare airport en route to China with $30,000 in cash and over 1,000 pages of documentation regarding Motorola's various communications networking tech, while another employee was caught buying Motorola phones in bulk and sending unlock codes and dump files to Lemko for reverse engineering purposes. Motorola also says that it doesn't yet know the exact relationship between Lemko, Huawei and some of the former employees because "file destruction software" was installed and run on computers before they were turned over as evidence, but the company claims that Huawei was aware it was receiving proprietary Motorola information the entire time it was in contact with the former employees. Yes, it's all very juicy -- we'll be watching this one closely.
$100,000 prototype laptop stolen from Apple's campus in 2009?
Zirana, a startup company with the goal to make Zirana.com "a one stop shop for all local information" for "residents of small and medium sized towns all across the world," including Cupertino, is reporting that a prototype laptop was stolen from Apple's campus sometime in 2009: Trade Secret Theft/Possession of Stolen Property - Infinite Loop Between 1/1 and 12/18, unknown suspect(s) took a prototype laptop worth about $100,000 from Apple Computers on Infinite Loop using an unknown method. The suspect(s) sold it to another suspect. Deputies recovered the laptop from the second suspect and he was released pending further investigation. Given that the laptop was a prototype, it's no surprise that it could be worth $100,000. And if Apple is having internal theft problems, it's no wonder they acted so swiftly and decisively to stop Gawker's (coincidentally) $100,000 bounty on Apple's tablet. As Zirana states, the prototype laptop has since been recovered. It should be noted, however, that Zirana's information on the theft is user generated and does not originate from an official police report or an Apple spokesperson. Then again, maybe that 3GS commercial took its inspiration from real life events?
Spring Design vs. Barnes & Noble: all the nooks and crannies
So we followed up with Spring Design to figure out what exactly its relationship with Barnes & Noble had been during the development of the Nook and why the company was suing, and, well, it's looking like B&N played some dirty pool here. You're looking at the actual NDA signed by Barnes & Noble and Spring Design, wherein each party agreed to keep their secrets... secret. After signing the agreement, Spring Design showed the Alex dual-screen ebook reader and associated marketing materials to B&N execs all the way up B&N CFO Kevin Frain and B&N.com president William Lynch, who said he was "looking forward" to a partnership. Soon after that, Spring implies that all contact stopped until Barnes & Noble announced the Nook. Lawsuit time! Here's where it gets tricky, though -- the NDA contains pretty standard language specifically allowing both B&N and Spring Design to walk away from each other and develop competing products, so long as they don't use any of the confidential information they learned under NDA. Without knowing exactly what Spring Design showed to B&N and how much of that influenced or is included in the Nook (which Barnes & Noble currently won't let anyone touch), we can't say much about how this one's going to play out, but for right now we're looking at a huge corporation bringing out an Android-based ebook reader with dual electronic paper and touchscreen LCD displays just months after being shown the same concept by a three-year-old startup, and that's not exactly a warm and fuzzy bedtime story. We'll see what happens next -- Barnes & Noble, you have anything to say? %Gallery-77196% %Gallery-77201%
Spring Design sues Barnes & Noble over the Nook
We knew something was up with the Spring Design Alex dual-screen ebook reader the instant we saw its hastily-prepared web site published the night before Barnes & Noble's Nook launch, and it appears that our hunch was right: Spring Design just filed a trade secret lawsuit against B&N, alleging that their designers showed the Alex to the bookseller's execs before the Nook was developed. According to Spring Design, the two companies had been in contact with each other over ereader designs since the beginning of the year, with various executives exchanging calls, meetings and product details under NDA -- which would certainly explain why there are suddenly two Android-based ereaders on the market with dual electronic ink and capacitive LCD touchscreen displays. Definitely suspicious, but we'd also note that the Nook and Alex actually work quite differently: users browse the web on the Alex's touchscreen and then "print" the content they want to read to the electronic ink display, while the Nook doesn't have a browser and the touchscreen is only used for navigation, not content. We're digging for as much info as we can, and we'll hit you with more info as soon as we get it -- stay tuned.
Former HP exec pleads guilty to stealing IBM trade secrets
Well, that didn't take long. Atul Malhotra, the HP executive charged with stealing printer market data when he left IBM and sending it to his new colleagues at HP with the genius-level subject line "For Your Eyes Only," has pled guilty to one count of theft of trade secrets. Malhotra probably made the right choice -- he specifically requested the information just before he left IBM and HP itself investigated and turned him in when he was found sending it around, so the case against him was pretty airtight. It's not clear what his plea deal is, but sentencing is scheduled for October 29, and he can get up to 10 years in the clink with a fine of up to a quarter-million dollars. Crime don't pay, kids.
Former HP VP charged with stealing IBM trade secrets
The printer market isn't exactly full of the most interesting news, but it's still big money, and big money tends to bring out the worst in people -- like former HP VP Atul Malhotra, who was just charged with stealing trade secrets from his former employer IBM and emailing them to other HP execs. Apparently Malhotra requested some confidential sales data two months before he went from the three-letter company to the two-letter one, and when he got there he hit up some other senior execs with the files -- marking the subject line "For Your Eyes Only." Yeah, that's an effective way to keep a lid on things. Malhotra was fired from HP in 2006, so all this went down some time ago, and HP says it actually conducted an internal investigation about the matter before firing Malhotra and reporting the theft to both IBM and the authorities. Sure, sure -- but we'll know what's up when the next HP AIO is running a Cell chip.
