MicroStrategy v. Business Objects

331 F. Supp. 2d 396 (2004)

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MicroStrategy v. Business Objects

United States District Court for the Eastern District of Virginia
331 F. Supp. 2d 396 (2004)

RW

Facts

MicroStrategy, Inc. (plaintiff) and Business Objects, S.A. (defendant) were rival producers of analytical software for businesses. Because it was common for key employees to move between MicroStrategy and Business Objects and to develop cross-company friendships, it was to be expected that leaks would disclose a certain amount of each company’s proprietary information to the other company. However, MicroStrategy was especially distressed by the leaked disclosure of its (1) strategic playbook for competing against Business Objects and (2) circular that highlighted features of MicroStrategy’s forthcoming software release. Both disclosures were engineered by ex-MicroStrategy employees who, after joining Business Objects, solicited the sensitive documents from current or former MicroStrategy employees, all of whom remained bound by the nondisclosure agreements they signed with MicroStrategy. MicroStrategy’s competitive playbook was so highly detailed and of such obvious value to its rival that MicroStrategy carefully controlled its distribution to prevent its unauthorized release. MicroStrategy’s highlights circular obviously was not meant for public release, but the circular was not stamped confidential and did not contain technical data. Some of the circular’s information was probably already known to the relevant public, and there was no evidence of what economic advantage the circular’s improper disclosure might give Business Objects. MicroStrategy moved for an injunction preventing Business Objects’ use of the playbook and circular.

Rule of Law

Issue

Holding and Reasoning (Friedman, J.)

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