Delphine Software International v. Electronic Arts, Inc.

Video-game developer Delphine Software International (Delphine) (plaintiff) had a publication agreement with Electronic Arts (EA) (defendant), under which EA published and distributed Delphine’s motorcycle-racing games Moto Racer 1 and Moto Racer 2. Delphine’s relationship with EA involved the disclosure of some of Delphine’s confidential information, so the publication agreement contained a confidentiality provision stating that EA could not use or disclose any of Delphine’s confidential information. In January 1999, Delphine learned that EA had started working on a motorcycle-racing game called Supercross 2000 (Supercross). In June 1999, when Supercross was in the final stages of development, Delphine sued EA in federal court in New York. Delphine alleged that in developing Supercross, EA had impermissibly used Delphine’s confidential information and trade secrets (i.e., Delphine’s source code and software-development techniques). Delphine sought a temporary restraining order (TRO) preventing EA from using Delphine’s trade secrets or releasing any products based on Delphine’s trade secrets. EA asserted that Supercross had been programmed differently and functioned differently from Delphine’s games. EA also claimed that Supercross had been developed by a separate company with no material assistance from any EA employee who had access to Delphine’s alleged trade secrets. EA further asserted that a TRO was unnecessary in any event because EA was not planning to release Supercross until October 1999.