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Keywords

damagestrialverdictsummary judgmenttrade secretshareholder agreementappelleepiracy
damagestrialverdictsummary judgmenttrade secretshareholder agreementappelleepiracy

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Global IT Group, Inc.

Facts

In the 1990s, Global Water Technologies, Inc. created a mobile self-powered water purification system, treating it as a trade secret. Robert Atchley, the president of GWT, resigned in 1994, and in 1999 began manufacturing similar systems through Aspen Water Inc. Global sued Atchley and Aspen for conspiracy and misappropriation of trade secrets, claiming damages based on lost profits after a jury found in their favor. However, the trial court granted a JNOV, stating that Global failed to prove the existence of a trade secret.

In the 1990s, Global Water Technologies, Inc. created a mobile self-powered water purification system, treating it as a trade secret. Robert Atchley, the president of GWT, resigned in 1994, and in 1999 began manufacturing similar systems through Aspen Water Inc. Global sued Atchley and Aspen for conspiracy and misappropriation of trade secrets, claiming damages based on lost profits after a jury found in their favor. However, the trial court granted a JNOV, stating that Global failed to prove the existence of a trade secret.

Issue

Did the trial court err in granting a judgment notwithstanding the verdict for the appellees on the claims of misappropriation of trade secrets and conspiracy, and in granting partial summary judgment on the shareholder agreement violation claim?

Did the trial court err in granting a judgment notwithstanding the verdict for the appellees on the claims of misappropriation of trade secrets and conspiracy, and in granting partial summary judgment on the shareholder agreement violation claim?

Rule

A trade secret is any formula, pattern, device or compilation of information which is used in one's business and presents an opportunity to obtain an advantage over competitors who do not know or use it. To determine whether information constitutes a trade secret, a court considers factors such as the extent of knowledge outside the business, measures taken to guard secrecy, and the value of the information.

A trade secret is any formula, pattern, device or compilation of information which is used in one's business and presents an opportunity to obtain an advantage over competitors who do not know or use it. To determine whether information constitutes a trade secret, a court considers factors such as the extent of knowledge outside the business, measures taken to guard secrecy, and the value of the information.

Analysis

The court found that Global did not sufficiently prove the existence of a trade secret, as the information regarding the formula and process was not unique or secretive enough to warrant protection. The court noted that the formula was imprecise and that the three-step purification process was commonly known. Additionally, there was no evidence that the formula provided a competitive advantage or that it was difficult to duplicate.

The court found that Global did not sufficiently prove the existence of a trade secret, as the information regarding the formula and process was not unique or secretive enough to warrant protection. The court noted that the formula was imprecise and that the three-step purification process was commonly known. Additionally, there was no evidence that the formula provided a competitive advantage or that it was difficult to duplicate.

Conclusion

The court affirmed the trial court's decision, concluding that there was legally insufficient evidence to support the claims of misappropriation of trade secrets and conspiracy, and that the shareholder agreement did not apply to Global.

The court affirmed the trial court's decision, concluding that there was legally insufficient evidence to support the claims of misappropriation of trade secrets and conspiracy, and that the shareholder agreement did not apply to Global.

Who won?

Atchley and Aspen Water, Inc. prevailed in the case because the court found that Global failed to prove the existence of a trade secret and that the shareholder agreement did not prohibit Atchley from competing against Global.

Atchley and Aspen Water, Inc. prevailed in the case because the court found that Global failed to prove the existence of a trade secret and that the shareholder agreement did not prohibit Atchley from competing against Global.

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