Re: Former employee use and modification

On 7/1/97, Val Dietrich <dietrich[_at_]earthlink.net> wrote:
>
> Company is owner of a software program. It uses copyright and trade
> secret protection for the software. Software is licensed to a few
> customers a year and is customized for each customer. A former
> employee starts up a business of servicing Company's customers.
> Services include seting up the software for various modes of
> operation, modifying the source code of the data, and running the
> software to test set-up and modifications. Company's agreements
> with its customers extend rights to use and modify source - only
> to customer's employees (in rare instances, customer agreements
> provide contractors can work on the software if the contractor
> enters a seperate agreement with Company to do so). Former employee
> has not entered any agreement wich Company permitting such use or
> modification. Former employee actions include taking Company source
> code installed at Customer A and installing it at Customer B. What
> causes of action are supported by these facts? What additional facts
> should be looked for to support what other causes of action?

Breach of employment agreement (non-compete clause), state-law misappropriation, breach of fiduciary duty (depending on status), tortious interference with company's contracts with its customers, state-law unfair competition, yada yada yada... Of course there is also a _very_ strong copyright case and most probably a trade-secret action as well. First blush: you're most likely to prevail on copyright. Pick yourself up a copy of _Computer Associates Inter., Inc. v. Altai, Inc._, 982 F.2d 693 (1992).

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