According to news reports, a Texas software company has filed a breach of contract lawsuit against Lenovo Singapore. The company, Khoros, alleges that Lenovo misappropriated its trade secrets by reverse-engineering Studio Tool, a community platform creator. The complaint was filed in federal court in the Northern District of California.
Khoros alleges that it provides access to Studio Tool to its customers with stringent confidentiality rules. Lenovo previously was a customer of Khoros and entered into a contract with the company’s successor, Lithium, in 2007. In that contract, Lenovo agreed that it would not reverse-engineer the company’s software. However, Khoros alleges that Lenovo reverse-engineered Studio Tool despite its contractual obligations. Lenovo’s community site reportedly has components that are identical to many components that have been created within the Studio Tool.
According to the complaint, Khoros is asking for the court to issue an injunction against Lenovo to immediately end using its proprietary software and the community platform that Lenovo allegedly built by reverse-engineering Studio Tool. It is also asking for compensatory damages in an unspecified amount. Khoros alleges that Lenovo’s unauthorized use of the Studio Tool could save Lenovo hundreds of millions of dollars in development costs to develop its community platform.
Protecting trade secrets is critical for many companies. When a business learns that another company has misappropriated its confidential information, the business may want to consult with commercial litigation attorneys. The lawyers can review what happened and discuss the legal options that the business has. The attorneys might file lawsuits on behalf of their clients against the infringing party to try to secure an injunction and to recover damages to compensate their clients for all of the losses that they have suffered because of the misappropriation of their trade secrets.