Aqua Connect, Inc. v. Code Rebel, LLC

Case No. CV 11-5764, 2012 WL 469737 (2012)

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Aqua Connect, Inc. v. Code Rebel, LLC

United States District Court for the Central District of California
Case No. CV 11-5764, 2012 WL 469737 (2012)

  • Written by Tammy Boggs, JD

Facts

Aqua Connect, Inc. (Aqua) (plaintiff) had a software product, Aqua Connect Terminal Server (ACTS), that contained trade secrets. According to Aqua, Code Rebel, LLC, and an individual (collectively, Code Rebel) (defendants) downloaded a trial version of ACTS and, in the process, agreed to an end-user license agreement (EULA) that restricted users from reverse engineering the software. After downloading ACTS, Code Rebel allegedly reverse engineered the product and thereby gained Aqua’s trade-secret information, which Code Rebel used to make its own competing software product. Aqua sued Code Rebel for misappropriation of trade secrets under California law, and Code Rebel moved to dismiss the complaint. Code Rebel argued that Aqua had failed to plead a cognizable cause of action.

Rule of Law

Issue

Holding and Reasoning (Lew, J.)

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