MedioStream, Inc. v. Microsoft Corporation

749 F. Supp. 2d 507 (2010)

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MedioStream, Inc. v. Microsoft Corporation

United States District Court for the Eastern District of Texas
749 F. Supp. 2d 507 (2010)

  • Written by Tammy Boggs, JD

Facts

According to Nero AG (Nero) (defendant), its embedded application programming interface (API), or a part of it, was a company trade secret. In June 2010, Nero entered into a software-evaluation agreement (SEA) with MedioStream, Inc. (plaintiff). Under the SEA, MedioStream was authorized to use and test Nero’s embedded API at a designated evaluation site for a 21-day period only, was otherwise restricted from disclosing or using the information, and was required to destroy or return the embedded API after the agreement terminated. Thereafter, MedioStream sued Nero, and Nero counterclaimed for misappropriation of trade secrets under the Uniform Trade Secrets Act (the act). Nero alleged that MedioStream had breached the agreement through various actions, such as covertly sending the embedded API to MedioStream’s subsidiary in China, where it was used for testing and development in an unauthorized manner. MedioStream moved to dismiss the misappropriation counterclaim.

Rule of Law

Issue

Holding and Reasoning (Everingham IV, J.)

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