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If the facts in the complaint are sufficient to state a cause of action, a motion to dismiss the complaint must be denied. Guest-Tek Interactive Entm't, Inc. v. Pullen, 665 F. Supp. Viken Detection is headquartered just northwest of Boston, in Burlington, Massachusetts. Viken Detection (formerly known as Heuresis) provides enabling security imaging and material identification solutions that help law enforcement and safety inspection professionals keep the public safe from drug trafficking, terrorism and other hazardous threats. Indeed, at the preliminary injunction stage, the Court recognized that sworn affidavits of experts in the field stated that the following features are generally known in the industry and thus likely do not amount to trade secrets: 1) size, 2) shape, 3) energy, 4) power and 5) weight of a handheld x-ray backscatter device and the use of 6) an x-ray tube, 7) a scanning method, 8) a shielding element and 9) software to translate the radiation pulses into images. Viken further contends that its unique alloy composition cannot be determined precisely without the use of specialized advanced laboratory techniques and, even then, is difficult to determine with accuracy. As news agencies around the U.S. report an unabated and even growing opioid epidemic, FOXHOUND-HNA is an essential and cost-effective tool for drug interdiction operations as they work to keep the public safe. Viken asserts that defendants' conduct constitutes 1) a violation of the Defend Trade Secrets Act ("the DTSA"), 18 U.S.C. Its case rests on a discredited individual who clearly stole from Viken and lied about it, stated Jim Ryan, CEO of Viken Detection. Part of this involves using cookies to collect anonymous data for statistics and personalization. Chelsea Industries, Inc. v. Gaffney, 449 N.E.2d 320, 326 (Mass. Although a court must accept as true all the factual allegations in a complaint, that doctrine is not applicable to legal conclusions. will be able to access it on trellis. in the jurisdiction of Middlesex County. J.T. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. Considering such allegations as true for the purpose of the motion at issue, plaintiff has stated a claim for relief pursuant to the CFAA under First Circuit law. Northvolt to Develop Wood-Based Batteries With Stora Enso, Why Neighborhoods and Small Businesses Thrive in Tokyo, Pennsylvania County Could Become First to Divest From Wells Fargo Over Abortion, Three Arrows Founders, En Route to Dubai, Describe LTCM Moment, Crypto Crash Be Damned, Some Workers Still Choose Digital Pay. Ashcroft v. Iqbal, 556 U.S. 662 (2009). c. 93, 42 by proving that the defendant acquired them through improper means (including by theft, bribery, misrepresentation or breach of contract but not by reverse engineering) or by disclosing or using trade secrets obtained through improper means without that person's consent. Judge Cowin, Jackie presiding. A plaintiff may also bring a claim under the DTSA for misappropriation of trade secrets if the trade secret is related to a product or service used in or intended to be used in interstate or foreign commerce. BOSTON--(BUSINESS WIRE)--A lawsuit filed against Videray Technologies Inc. by Viken Detection Corporation has concluded. French border staff are blamed for FOUR-hour wait at Dover as queue chaos hits Heathrow, Manchester and Bristol airports while fuel protesters plot road blocks on 'busiest getaway in eight years' at start of school break, dailymail.co.uk His Dropbox account allegedly contained approximately 1,800 sensitive files in a folder named "Hbi120." Now Viken has obtained overwhelming proof that, days before leaving Viken, Viderays CEO removed a hard drive with trade secrets for Vikens HBI-120 scanner, among other highly confidential documents, despite falsely denying any IP theft in his testimony. and Viderays CEO defended his actions by wrongly accusing Dr. Rothschild of using AS&E IP, and AS&E in turn based its case largely on the CEOs false testimony. Viken also submits that certain combinations of design elements Bradshaw utilized to accelerate the development of Videray's competing product amounts to an improper use of proprietary and confidential information. Langadinos v. Am. To establish a claim under the CFAA, a plaintiff must prove that the defendant "knowingly and with intent to defraud" accessed a protected computer without valid authorization or in excess of authorization to further the intended fraud and obtain something of value, with certain exceptions not relevant here. Id. Videray has developed the PX1 which apparently has the same external design, ergonomics and operating characteristics as Viken's HBI-120. against 2d 217, 238 (D. Mass. Attorney For The Plaintiff. Compare 18 U.S.C. 1836(b)(1); 2) a violation of the Computer Fraud and Abuse Act ("the CFAA"), 18 U.S.C. See Wec Carolina Energy Solutions, LLC v. Miller, 687 F.3d 199 (4th Cir. With respect to the second element of trade secret misappropriation, plaintiff has sufficiently alleged that it took reasonable measures to protect its trade secrets, including restricting access to select employees and requiring employees to sign non-disclosure agreements. AS&Es complaint comes after their recent failed attempts to rehire Dr. Rothschild, and selectively relies on discredited individuals including one who has pleaded the Fifth Amendment to accusations of planting documents to frame Dr. Rothschild, and another who was terminated by Viken several years ago while ignoring the sworn statements of AS&Es own former CTO that undermine their allegations. To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to "state a claim to relief that is plausible on its face." Bell Atl. Bulwer v. Mount Auburn Hosp., 46 N.E.3d 24, 39 (Mass. Plaintiff also alleges that defendants misappropriated certain of its strategic product plans and potential product modifications. It allegedly does so by using. Bloomberg Markets European Open kick starts the trading day, breaking down what's moving markets and why. Attorney For The Plaintiff, Shanahan, Esq., Emily C 2000). You can always see your envelopes App. Track Judges New Case, Cogswell, Iii, Esq., Lawrence Perley Keep it Clean. Your subscription has successfully been upgraded. Don't Threaten. After losing business to U.S. government and international customers to two small companies in the security detection space, OSI Systems is using the legal system to unfairly target the companies to tarnish their reputations and force them to spend precious funding defending themselves rather than invest in their products, the top executives from SureScan Corp. and Viken Detection allege. United Truck Leasing Corp. v. Geltman, 551 N.E.2d 20, 21 (Mass. A mainly sunny sky. The timing of their lawsuit comes just prior to impending large government tenders for new vehicle scanning equipment to be used to thwart high-volume drug trafficking at the U.S. southern border. Bradshaw stored proprietary and confidential information relating to the HBI-120 on his desktop computer, laptop computer and personal Dropbox account. United States District Court District of Massachusetts. Viken Detection Corporation vs. Grodzins, Henry. . To the contrary, and as described with respect to plaintiff's CFAA claim, the Complaint alleges that, in accessing Viken's sensitive information to further an interest adverse to it, Bradshaw either acted as an unauthorized competitor or exceeded his authorization as an employee. 2001)). Bradshaw also agreed that he would not retain any Proprietary Information of Viken upon termination of his employment. To prevail on a claim of misappropriation of trade secrets, a plaintiff must establish that 1) the information at issue constitutes a trade secret, 2) the plaintiff took reasonable measures to secure the confidentiality of the information and 3) the defendant obtained the trade secret through improper means. We are always working to improve your experience on our website. Finally, Bradshaw purportedly told McCabe that, in reference to a computer on which he kept proprietary and confidential information about the HBI-120, "I have everything I need". Bradshaw vigorously denies those allegations but at least one other Viken employee reiterates McCabe's assertions. For more information, visit vikendetection.com. Francine Lacqua and Tom Mackenzie live from London bring you an action-packed hour of news no investor in Europe can afford to miss. Notifications from this discussion will be disabled. ,1 minutes ago Others on Viken's research and development team purportedly had access to the files on Bradshaw's personal Dropbox account, including the former CEO of Viken, Henry Grodzins ("Grodzins"). Within a few days after his termination, however, then-CEO Grodzins offered Bradshaw his job back because he believed that McCabe either lied or exaggerated about Bradshaw's conduct. 2d at 208. 26) is DENIED. ,2 minutes ago Viken alleges that the PX1 1) is the same size and shape, 2) uses approximately the same x-ray energy, 3) uses approximately the same power and 4) likely achieves the same x-ray shielding requirements for user safety as the HBI-120. Viken's complaint identifies the following information as comprising its trade secret: Defendants respond that such information is not a trade secret because it is readily ascertainable from publicly accessible features of Viken's HBI-120. That conclusion does not, however, support an inference that Viken has failed to state a claim upon which relief can be granted. Viken purportedly protected those design modifications as trade secrets for possible future use and Bradshaw had access to that information during his employment with Viken. In considering the merits of a motion to dismiss, the Court may only look to the facts alleged in the pleadings, documents attached as exhibits or incorporated by reference in the complaint and matters of which judicial notice can be taken. Id. All content copyright 2022 Homeland Security Today. 2012). AS&Es papers wrongly describe Vikens use of a non-proprietary software interface, AusSim, as trade secret misappropriation. No racism, sexism or any sort of -ism c. 93, 42(1)-(2). Videray Technologies, Inc. is a proud young American company disrupting the non-intrusive inspection market with the most advanced technology. 2016). He further agreed that during his employment and for a period of one year thereafter, he would not 1) recruit or solicit for employment any employee of Viken or any affiliate of the company (or a former employee within his or her one-year grace period) or 2) interfere with Viken's business relationships with other persons or companies by inducing or attempting to induce a person or company to refrain from or discontinue doing business with Viken. Overnight on Wall Street is morning in Europe. Despite this attack from a much larger company during these unprecedented times, Viken remains resilient and resolute in its mission to provide the most advanced, effective and safe drug interdiction technologies to officers on the front line around the world, said Viken CEO, Jim Ryan. 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Supp. Viken, formerly known as "Heuresis Corporation", is a Delaware corporation with its principal place of business in Massachusetts. . FOXHOUNDs bulk sampling mode does not require swabs, significantly reducing consumables costs. 1983). Shanahan, Esq., Emily C, Featuring tri-mode functionality and design, Vikens handheld narcotics analyzer is optimized for drug interdiction and tailored for wide use in law enforcement operations. by Videray is a Delaware corporation with its principal place of business in Massachusetts. Corp. v. Twombly, 550 U.S. 544, 570 (2007). , as well as the common used If the content contained herein violates any of your rights, including those of copyright, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com, Bannon wont testify as contempt trial heads to jury, Jan. 6 probe: Trump "poured gasoline on fire" at Capitol, Intel Core i5-13600K trades blows with the Core i9-12900K on Geekbench, notebookcheck.net We may also use your data to tailor ads for you and our partners will collect data and use cookies for ad personalisation and measurement. FOXHOUND-HNA takes a novel approach to high-resolution ion mobility spectrometry (IMS) technology in three modes: vapor, trace, and bulk sampling. Wood, Esq., Keith Jonathan, when new changes related to "" are available. 1030(a)(4). Further information on how we and our partners collect and use data can be found in our FOXHOUND-HNAs patent-pending bulk sampling mode is a new feature, designed to handle large amounts of material that would typically overwhelm IMS and Mass Spectrometry systems. Cowin, Jackie All rights reserved. Viderays CEO responded by pleading the Fifth and invoking his right against self-incrimination. Inc. Civil Action No. Try our Advanced Search for more refined results. Elvis star Shonka Dukureh dead aged 44. 1030; 3) misappropriation of trade secrets, M.G.L. Already a subscriber? or anything. Healy & Son, Inc. v. James A. Murphy & Son, Inc., 260 N.E.2d 723, 729 (Mass. R. Civ. Viken Detection Corporation, Threadbare recitals of legal elements which are supported by mere conclusory statements do not suffice to state a cause of action. Viken produces and sells hand-held x-ray scanners used by law enforcement and security professionals to discover concealed explosives, narcotics and other contraband in a quick and cost-effective manner. Id. Those modifications include 1) increased power by upgrading to "140 [keV]", 2) "[i]mage analysis and processing . Cookies Policy In October, AS&E filed suit against Viken in federal courtclaiming patent infringement related to two products that Viken hasdeveloped that enable privately owned vehicles to be scanned from thetop, bottom and sides while the occupantsremain in the car. Your subscription was successfully upgraded. Privacy Statement 2022, Portfolio Media, Inc. | About | Contact Us | Legal Jobs | Advertise with Law360 | Careers at Law360 | Terms | Privacy Policy | Cookie Settings | Help | Site Map. She also alleged that, while still employed by Viken, Bradshaw met with a potential investor to solicit funds for his new company. Ct. 1991). Adding your team is easy in the "Manage Company Users" tab. Site by Myriad. Sussman, Esq., Samuel, and High near 95F. Nevertheless, plaintiff has plausibly alleged the existence of a trade secret. In June, 2017, Katie McCabe ("McCabe"), a former employee of Viken, informed the company that while Bradshaw was still working at Viken, he told her that he planned to leave Viken and start a new company that would produce and sell a competing product. In June, a trial judge rejected this attempt, denied AS&E any preliminary relief, and ruled that AS&E had not demonstrat[ed] a likelihood of success on the merits of demonstrating a protected trade secret. Last week, a Justice of the Massachusetts Appeals Court upheld this ruling, citing numerous reasons the judge rightly concluded that AS&E did not meet its burden of showing that AusSim is a protected trade secret. Defendant moved to dismiss plaintiff's complaint in its entirety in May, 2019. ,3 minutes ago 1836(b)(1). In the case of Viken Detection, which in 2018 year beat out OSIsAmerican Science & Engineering (AS&E) business unit for a U.S.Customs and Border Protection agency contract for handheld imagers, thecompany successfully defended alawsuit alleging misappropriation oftrade secrets by AS&E and two subsequent appeals by AS&E werealso rejected last June and July by state courts in Massachusetts. Pursuant to that contract, he agreed that he would. that is degrading to another person. Shortly thereafter, it filed a motion for a temporary restraining order and preliminary injunction. The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. Monitor your investments 24 hours a day, around the clock from around the globe. 26). Socal Diesel, Inc. v. Extrasensory Software, Inc. SoCal Diesel, Inc. v. Extrasensory Software, Inc. Your content views addon has successfully been added. We are currently collect data for this state. Hot. This website and all its content, including all text and images, is protected by copyright Viken Detection 2022. ,4 minutes ago The phrase "without authorization" is not defined in the statute, but this Court has previously recognized that the First Circuit Court of Appeals has advocated for a broad interpretation of that phrase to include an employee who accesses his employer's computer, without the employer's knowledge, to acquire, or after acquiring, an interest adverse to his employer. Use the 'Report' link on The case was fully resolved on confidential terms by the parties, who filed stipulations of dismissal on October 5, 2020. www.videray.com, Contact: Rafael Estrada, CCO at [email protected], Rafael Estrada, CCO Indeed, Viken alleges that regardless of what level of authorization Bradshaw was granted as its employee, when he accessed its protected information for the purpose of competing with Viken, a quintessential adverse interest, he was acting either without or in excess of his authorization. What's Behind Europe's Spate of Deadly Wildfires? The companys innovative handheld products, the HBI-120 (handled imager) and Pb200i (lead-paint analyzer), are the recognized leaders in their markets. The standard for misappropriation under the DTSA is substantially similar to that under Massachusetts law. 2000), aff'd, 228 F.3d 1127 (1st Cir. The phrase to "exceed authorized access" is defined as. Furthermore, as emphasized by plaintiff, the only citation proffered by defendants in support of their motion to dismiss plaintiff's claim of tortious interference holds that a principal, in some circumstances, may not be treated as a third party in relation to "corporate contracts." Viken Detection Corporation ("Viken" or "plaintiff") brings this suit against Paul Bradshaw ("Bradshaw") and Videray Technologies Inc. ("Videray") (collectively "defendants"), alleging that Bradshaw misappropriated Viken's confidential information when he left Viken to form Videray to compete directly with Viken. Viken submits that Bradshaw breached the NDA by, among other things, 1) failing to "keep in strictest confidence and trust" the proprietary and confidential information of Viken; 2) retaining Viken's proprietary and confidential information upon termination of employment; and 3) recruiting or soliciting Viken employees to join a competitor. BOSTON--(BUSINESS WIRE)--A lawsuit filed against Videray Technologies Inc. by Viken Detection Corporation has concluded. at 1950. Viken Detection issued the following statement: AS&E has filed a groundless lawsuit against Viken Detection and its CTO, Dr. Peter Rothschild, based on concocted allegations of events that supposedly took place over six years ago when Dr. Rothschild left AS&E to start Viken. Indeed, Viken complains that Bradshaw actively competed by, among other things, 1) meeting with a potential investor to solicit funds; 2) soliciting a co-worker to join his new company; 3) collecting Viken customer contacts; 4) accessing confidential salary and equity information of Viken employees to entice co-workers to join his new company; 5) failing to share customer feedback related to product improvements and intending to utilize such information to improve his competing product; and 6) asking co-workers to help him collect confidential customer information. Such allegations support a claim that Bradshaw actively competed with Viken during his employment and, therefore, breached his duty of loyalty. Burlington, MA 01803 We look forward to continue to work with law enforcement agencies around the country with our latest tool, the FOXHOUND-HNA.. . I hope the conclusion of this lawsuit puts the matter behind us so we can fully concentrate on serving our customers who work hard to achieve a safer society, said Paul Bradshaw, Viderays CEO. A plaintiff can establish misappropriation of trade secrets pursuant to M.G.L. The case was fully resolved on confidential terms by the parties, who filed stipulations of dismissal on October 5, 2020. Such allegations are sufficient, however, to survive a motion to dismiss. On January 29, 2020 an employment contract case was filed 0, Warner Bros. Discovery-BT Sports Joint Venture Deal Cleared by U.K. Competition Watchdog, hollywoodreporter.com View source version on businesswire.com: https://www.businesswire.com/news/home/20200323005617/en/, INVESTIGATION ALERT: The Schall Law Firm Announces it is Investigating Claims Against Kucoin and Bit-Z and Encourages Cryptocurrency Traders with Losses to Contact the Firm, Ology Bioservices, Vanderbilt University Medical Center to Develop, Manufacture Monoconal Antibody for Treatment, Prevention of Infection With COVID-19 Virus for Department of Defense. Defendants contend that plaintiff has failed to state a claim for tortious interference because Bradshaw, as owner and principal of Videray, is synonymous with his company. The only dispute is whether Bradshaw breached the terms of that agreement. 21 North Avenue Attorney For The Plaintiff, Wood, Esq., Keith Jonathan Bradshaw also kept files related to the plans for other Viken products on his personal Dropbox. Download filings with the U.S. Patent & Trademark Offices Patent Trial & Appeal Board. AS&Es complaint admits that AS&E had no independent evidence that Rothschild had used AS&Es proprietary or confidential information to develop [Vikens] product until it saw the testimony of the CEO of Videray Technologies, who Viken is currently suing for trade secret misappropriation. You have to know whats happening with clients, competitors, practice areas, and industries. Opt-into our eNewsletter NOW! 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(quoting J.T. Plaintiff's complaint alleges that Bradshaw's conduct amounts to more than simply making logistical arrangements to prepare to compete. We'd love to hear eyewitness BURLINGTON, Mass.--(BUSINESS WIRE)--Viken Detection, pioneer of x-ray imaging and analytical devices, today announced that AS&E lost its appeals court petition to reverse AS&Es prior loss in unsuccessfully obtaining a preliminary injunction against Viken. Viken Detection, pioneer of x-ray imaging handheld devices and vehicle scanners, today commented on a lawsuit recently filed by AS&E, a division of Rapiscan and OSI Systems. Low near 70F. In denying plaintiff's motion for a preliminary injunction, this Court found that plaintiff had not demonstrated a reasonable likelihood of success on its CFAA claim because members of Viken's research and development team apparently had access to the files on Bradshaw's personal Dropbox account and former-CEO Grodzins attested that he was aware of and had no issue with Bradshaw's use of his personal Dropbox account for that purpose. Share with Us. Plaintiff filed its complaint in the instant action in March, 2019. Accordingly, a complaint does not state a claim of relief where the well-pled facts fail to warrant an inference of any more than the mere possibility of misconduct. Here, plaintiff conversely alleges that the corporation tortiously interfered with a contract of its principal. accounts, the history behind an article. Counts I and III: Violation of the DTSA and Misappropriation of Trade Secrets. Bradshaw submits that he merely prepared to compete with Viken by making certain logistical arrangements during his employment and, therefore, did not breach his duty of loyalty.