Update On ClearOne Trade Secret Case - Premanent Injunction Gratned

The following is from ClearOne Granted Permanent Injunction Order in Federal Trade Secret Misappropriation Case . SunHerald.com provides an impressively detailed description of the judgment.

On April 9, 2009, the Court issued a Permanent Injunction. The Permanent Injunction provides, among other things, the following:

-- that the restrictions set forth apply immediately;

-- that the restrictions set forth apply not only to the Defendants, but also to each Defendants' agents, servants, officers, employees, entities, and those acting in concert with them, and/or those acting under their direction or control;

-- that all WideBand Defendants are permanently prohibited from using, disclosing, or transferring in any way the computer code at issue in the case, the development documentation for that code, and WideBand's "Infringing Products," defined as: (a) the AEC2w object code licensed to Biamp, (b) the computer code licensed to Harman Music Group, Inc. that was the subject of the October 30, 2008 Preliminary Injunction Order, (c) WideBand's FC101 product, (d) WideBand's WC301 product, (e) WideBand's WC301A product, and (f) WideBand's Simphonix product;

-- that the restrictions on WideBand Defendants include, without limitation, a restriction upon any further marketing, selling, manufacturing, development, modification, duplication, or transport or delivery of technology containing the computer code at issue in the case, or any product substantially derived from that computer code, including for the purpose of servicing any past or existing customer; and

-- that Biamp is permanently prohibited from using, disclosing, or transferring the object code licensed to it by WideBand for use in its "AEC2W" cards, including use of such code to service any past or existing customers.

On April 9, 2009, the Court issued a separate order, an Order Granting Permanent Injunction, placing additional requirements on WideBand Defendants, including:

-- that Defendants Lonny Bowers, Andrew Chiang, and Jun Yang provide a copy of the Permanent Injunction to (a) any prospective or new employer, (b) any existing or potential licensee of any audio DSP product generated by them, their company, or their employer, and (c) any potential purchaser of WideBand or its assets.

Further, the Order Granting Permanent Injunction noted, among other things, that preventing use of the trade names associated with the infringing technology is a necessary consequence of the WideBand Defendants' misconduct, and that WideBand Defendants should be compelled to turn over every electronic or hard copy of any algorithm, source code, object code, documentation, or other materials containing or derived from the computer code at issue in the case.

For a prior case on the subject, follow this link.