Facts

In 1990, Raymedica Inc. began development of a spinal disc nucleus hydrogel implant. In 2005, Raymedica contacted Applied Hydrogel Technology (AHT) for assistance in its operations. As a result, the parties entered into a mutual non-disclosure agreement (MNDA). Later, a consulting agreement between the parties incorporated the MDNA and provided that Raymedica's non-exclusive use of information would not survive termination of the consulting agreement. In Dec., AHT terminated the consulting agreement. In 2006, AHT sued Raymedica and its Chief Operating Officer Fred Kornahrens, claiming that they used AHT's technology without authorization. Raymedica counterclaimed against AHT and its president Dr. Lih-Bin Shih.

PLAINTIFF'S CONTENTIONS:
AHT claimed breach of contract, fraudulent inducement, intentional and negligent misrepresentation, misappropriation of trade secrets, and conversion.

DEFENDANT'S CONTENTIONS:
Raymedica and Kornahrens denied that they possessed any trade secrets of value and also denied all of the plaintiff's other claims. Raymedica counterclaimed against AHT and Dr. Shih for breach of contract, conversion and fraud.

Result

The jury returned a defense verdict in favor of defendant Fred Kornahrens on plaintiff's claim that Kornahrens misappropriated plaintiff's trade secrets, but was hung as to the claims of trade-secret misappropriation and breach of contract claims against Raymedica. The jury found in favor of Raymedica on its counterclaims for breach of contract and conversion. On Raymedica's fraud counterclaim, the jury found in favor of plaintiff and Dr. Shih.

Other Information

Post trial motions are currently pending. Retrial on plaintiff's claim for misappropriation of trade secrets is also pending. FILING DATE: Sept. 1, 2006.