Trade secret count survives motion to dismiss
Mobius Management Systems, Inc. v. Acartus, Inc., No. 05-346-SLR, June 28, 2006.
Robinson, J. Defendant’s motion to strike, dismiss and stay amended complaint is denied.
The parties compete in marketing computer software for managing electronic files and data. The initial complaint alleged violations of trademark, false advertising, deceptive trade practices, theft of trade secrets and unfair competition. The parties stipulated to an injunction with respect to trademark and false advertising claims. During settlement discussions, defendant admitted reverse-engineering a publicly posted DAF file to create its accused product. Plaintiff amended its complaint adding a claim for violating Delaware’s Uniform Trade Secrets Act. Defendant moved to dismiss as violative of Fed. R. Civ. P. 408. The court ruled that 408 has no application and that issues of fact should be resolved after close of discovery. Plaintiff’s motion to compel is granted.
