MicroStrategy: We Won Big One In Trade Secrets Case Vs. Biz Objects
08/10/2004
MicroStrategy (NASDAQ: MSTR), the provider of business intelligence software, says a Norfolk, Virginia federal judge has found Business Objects (NASDAQ: BOBJ) guilty of misappropriating highly confidential MicroStrategy documents. The court has ordered Business Objects to cease and desist from further use of MicroStrategy's trade secrets.
MicroStrategy provided these details:
The comprehensive, 61-page opinion documents a widespread pattern of "unethical" and "improper" conduct by Business Objects employees. The court concluded, "Business Objects acquired constructive or actual access to a significant amount of MicroStrategy's proprietary and confidential information, including internal email, descriptions of software architecture, sales documents, competitive intelligence, and PowerPoint presentations."
One of the most sensitive documents misappropriated by Business Objects, which provided a detailed description of how MicroStrategy planned to compete against Business Objects, was found by the court to be of "enormous economic value" to both MicroStrategy and Business Objects. The court's decision, a copy of which is available at http://media.corporate-ir.net/media_files/Nsd/mstr/reports/mstr_081004.pdf, announces the results of a trial conducted in October 2003.
Among the decision's many noteworthy findings are that a number of MicroStrategy's most sensitive documents were circulated widely among Business Objects' top executives (including CEO Bernard Liautaud, VP of Marketing Dave Kellogg, VP of Sales John Powell, and Head of North American Operations Jon Temple), but that nothing was done to stop the flow of this ill-gotten information.
Commenting on Business Objects' earlier press release today claiming victory in the case, Jonathan F. Klein, MicroStrategy's Vice President, Law & General Counsel, noted, "We are pleased with the court's decision. Business Objects misappropriated our trade secrets, and the court issued an injunction prohibiting their use. Business Objects' suggestion that its misconduct involved only a single employee and two documents is contradicted by the court's extensive factual findings. It is regrettable that MicroStrategy had to go to court to force Business Objects to play by the rules. The court's opinion is a clear indictment of Business Objects' efforts to gain unfair advantage in our very competitive marketplace."