Facts

Bruce Bierman invented "Bookmark," which allowed a computer user to return their computer to a previously saved state in the event of a failure. Biermman formed Intellisoft International Inc. in 1986, to sell and/or license the Bookmark software. Following its bankruptcy, Bierman formed Intellisoft Ltd. (Intellisoft) Beginning in October 1998, Intellisoft Ltd. continually updated, refined and developed Bookmark.

Intellisoft filed a suit against IBM, asserting claims for wrongful disclosure and use of confidential information and trade secrets owned by Intellisoft relating to Bookmark.

IBM sought to dismiss the lawsuit arguing laches, lack of standing, and on statute of limitations ground.

PLAINTIFF'S CONTENTIONS:
In 1986, International Business Machines Corp. (IBM) entered into a non-disclosure agreement with Intellisoft International. From October 1988 to about Dec. 1994, Intellisoft provided IBM with upcoming versions of the Bookmark software. The software was subject to a limited warranty and licensing agreement. Intellisoft claimed that IBM thereafter repeatedly and insistently informed Intellisoft that it was interested in licensing Bookmark. Ultimately, IBM never licensed Bookmark. Intellisoft then sued IBM in 2012, asserting claims for wrongful disclosure and use of confidential information and trade secrets owned by Intellisoft relating to Bookmark. Intellisoft also asserted claims for misappropriation of trade secrets, breach of confidence, breach of an implied-in-fact contract, unjust enrichment, intentional misrepresentation, and breach of contract.

Result

U.S. District Judge Phyllis J. Hamilton denied IBM's motion to dismiss based on the doctrine of laches and lack of standing, but granted the motion on statute of limitations ground with leave to amend.