IDX Systems Corp. v. Epic Systems Corp.

285 F.3d 581, 62 U.S.P.Q.2d 1278 (2002)

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IDX Systems Corp. v. Epic Systems Corp.

United States Court of Appeals for the Seventh Circuit
285 F.3d 581, 62 U.S.P.Q.2d 1278 (2002)

Facts

IDX Systems Corp. (IDX) (plaintiff) and Epic Systems Corp. (Epic) (defendant) both made financial software for medical practices. IDX sold its software package to the University of Wisconsin Medical Foundation (the foundation). The foundation later switched to Epic software. IDX brought suit in federal district court, alleging that two foundation employees (the employees) (defendants) who had formerly worked for Epic stole valuable information about the IDX software while working at the foundation and conveyed the information to Epic. The complaint alleged that the resulting improvements to Epic’s software put Epic in a position to gain the foundation’s business. IDX submitted a 43-page description of the IDX software, though the contents included generic imagery without specificity as to which elements of the software constituted trade secrets. IDX charged the employees and the foundation with misappropriating trade secrets and breaching contractual promises of confidentiality between IDX and the foundation. IDX also charged Epic with tortious inducement of the same acts. The district court dismissed the tortious-inducement claim, ruled the confidentiality agreements invalid, and granted summary judgment to the employees and the foundation on the trade-secret claim. IDX appealed to the United States Court of Appeals for the Seventh Circuit.

Rule of Law

Issue

Holding and Reasoning (Easterbrook, J.)

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