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Intellectual Property
Patent Infringement
Trade Secrets Act

Spring Design Inc. v. Barnesandnoble.com, LLC

Published: Jan. 29, 2011 | Result Date: Dec. 27, 2010 | Filing Date: Jan. 1, 1900 |

Case number: C 09-05185 JW Summary Judgment –  Defense

Court

USDC Northern


Attorneys

Plaintiff

Elizabeth J. White

J. David Hadden

Lynn H. Pasahow

Saina S. Shamilov


Defendant

Jennifer A. Kash

Charles K. Verhoeven
(Quinn, Emanuel, Urquhart & Sullivan LLP)

David W. Quinto
(VidAngel Inc.)


Facts

In 2006 and 2007, Spring Design, Inc. applied for patents asserting several variations of an eReader containing a dual-display design, and utilizing electronic paper and liquid displays. In 2009, Spring Design and Barnesandnoble.com, LLC entered into a nondisclosure agreement whereby they would not reveal, recreate, transfer or utilize confidential information belonging to the other party, with specified exceptions for certain employees. On Oct. 29, Barnesandnoble.com released the NOOK, its own eReader. In 2010, Spring Design release a competing eReader, called the Alex. Both products were dual-screen eReaders.

Later, Spring Design sued Barnesandnoble.com, claiming that it violated California Unfair Competition Law, breached the contract, and misappropriated trade secrets.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that defendant utilized information that was protected by the non-disclosure agreement in creating the NOOK.

DEFENDANT'S CONTENTIONS:
Defendant argued that plaintiff's claim for trade secret misappropriation should fail because plaintiff allegedly revealed information to the public via its published patent applications. In addition, defendant argued that the UTSA preempted plaintiff's unfair competition law claim.

Result

The court granted defendant partial summary judgment on a portion of the misappropriation of trade secrets claim, and only that one of the four asserted trade secrets was disclosed in Spring's published patent applications.


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