![]() On June 25, 2020, Insider’s counsel notified Defendants of termination of the Master United States District Court Northern District of California 6 7 Services Agreement. Insider has asked Defendants on 3 several occasions to grant Insider administrative access to its FontAgent CloudServer on GitHub, 4 and to return all of its source code and other intellectual property. Defendants also have taken copies of Insider’s source 2 code, object code, build libraries, and other code. Defendants are storing Insider’s FontAgent 28 CloudServer on GitHub, another cloud-based source code management service, and/or on 2 1 Defendants’ personal computers. In early 25 2020, Insider discovered that Defendants had moved Insider’s FontAgent CloudServer from 26 Assembla, the cloud-based source code management service where it had been stored, without 27 Insider’s knowledge or permission. Insider declined, taking 23 the position that the work performed by Defendants was not worth more than 30% of revenues, 24 which according to Insider was already significantly above industry standards. 21 Over the years, Defendants sought to renegotiate the terms of the Master Services 22 Agreement, requesting a larger share of revenues. Insider also made Defendants the “root” users for Insider’s FontAgent CloudServer, meaning 19 that Defendants had the login and password information for the “root” account, which gave them 20 the ability to make unrestricted, system-wide changes to the FontAgent CloudServer. So that ID Designs and Deda 17 could perform the agreed-upon work, Insider gave Defendants full access to its source code. 15 Defendants agreed to relinquish all right, title, and interest in the work performed for Insider, and 16 to treat Insider’s intellectual property in strict confidence. Under the parties’ Master Services Agreement, Insider agreed to 14 pay Defendants 30% of its revenues on the products that ID Designs helped develop. Deda and his wife are the only 12 employees of ID Designs, and Deda is the only employee responsible for compute programming 13 and engineering services. For several years, Insider has contracted with ID Designs, a company run by Insider’s 10 former Vice President of Engineering, Deda, to assist in designing, developing, improving, and 11 maintaining Insider’s FontAgent products. 9 United States District Court Northern District of California I. 6 Insider’s products can be installed locally on customer computers, or customers can use the 7 products on a subscription basis through Insider’s cloud-based data center, the FontAgent 8 CloudServer. Its FontAgent family of 5 products assist customers in managing fonts on Mac, Windows, and Linus operating systems. Insider provides font- 4 management software and subscription services. 1 2 BACKGROUND Insider has submitted the declaration of its Chief Executive Officer, Bruce Mitchell, which 3 establishes the following facts. A hearing on Insider’s motion for a preliminary 28 injunction is set for Septemat 10:00 a.m. Insider may file a reply on or 27 before Septemat 10:00 a.m. Defendants are 25 HEREBY ORDERED TO SHOW CAUSE, in writing and on or before September 4, 2020, why 26 the preliminary injunction requested by Insider should not issue. 24 As set forth below, Insider’s ex parte motion is GRANTED IN PART. The Court held a telephonic 23 hearing on the ex parte motion on August 28, 2020, at which Insider’s counsel appeared. Simultaneously with filing the complaint, Insider filed an ex parte 21 motion seeking a temporary restraining order (“TRO”) and an order to show cause why a 22 preliminary injunction should not issue. (“ID Designs”) and Klajd Deda 19 (“Deda”) for misappropriation of trade secrets under federal and state law, and a number of related 20 claims. (“Insider”) filed the complaint in this action on August 25, 18 2020, asserting claims against Defendants ID Designs, Inc. 20-cv-05990-BLF ORDER GRANTING IN PART PLAINTIFF’S EX PARTE MOTION FOR TRO AND ORDER TO SHOW CAUSE WHY PRELIMINARY INJUNCTION SHOULD NOT ISSUE AND SETTING HEARING ON PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION 15 16 17 Plaintiff Insider Software, Inc. United States District Court Northern District of California 11 12 13 ID DESIGNS, INC., an Oklahoma corporation and KLAJD DEDA, an individual, Defendants. 1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 9 INSIDER SOFTWARE, INC., a Delaware corporation, Plaintiff, 10 v.
0 Comments
Leave a Reply. |