Ajaxo Inc. v. E*Trade Group Inc., Everypath Inc.
Published: Dec. 16, 2003 | Result Date: Apr. 22, 2003 | Filing Date: Jan. 1, 1900 |Case number: CV793529 Verdict – $1,290,000
Judge
Court
Santa Clara Superior
Attorneys
Plaintiff
Defendant
William F. Abrams
(Steptoe & Johnson)
Joseph E. Floren
(Morgan, Lewis & Bockius LLP)
Facts
The plaintiff, a provider of Wireless Application Protocol development tools for enterprise applications, based in Cupertino, markets a software program called Wirelessproxy XO. In 1999, Ajaxo claimed that Wirelessproxy XO was the first of its kind, a front-end, middleware solution that allowed users to safely and securely execute wireless stock trading via handheld devices such as web-enabled phones and PDA's, etc. ETrade Group Inc., a national financial services provider, and Ajaxo entered into a non-disclosure agreement in order to discuss a possible business relationship. Ajaxo alleged that it shared confidential and proprietary information with ETrade pursuant to this agreement, only to have E*Trade disclose it to Everypath Inc., a mobile task automation software start-up company based in San Jose.
Settlement Discussions
The plaintiffs demanded $15 million. There were no offers.
Damages
Ajaxo claimed unjust enrichment damages of approximately $50 million. The court granted a nonsuit on the claim of unjust enrichment on the basis that it was too speculative.
Result
The jury found that E*Trade and Everypath willfully and maliciously misappropriated Ajaxo's trade secrets. The jury also found that E*Trade breached a non-disclosure agreement with Ajaxo and awarded Ajaxo $1.29 million in damages. In the second phase of trial, the court denied Ajaxo's request for royalties and punitive damages against the defendants. In the final phase of the trial, the court denied Ajaxo's request for a permanent injunction.
Other Information
Ajaxo will appeal the court's nonsuit regarding unjust enrichment charges. E*Trade will appeal from the jury's verdict.
Deliberation
three days
Length
six weeks
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