Structural Dynamics Research Corp. v. Engineering Mechanics Research Corp.

401 F. Supp. 1102 (1975)

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Structural Dynamics Research Corp. v. Engineering Mechanics Research Corp.

United States District Court for the Eastern District of Michigan
401 F. Supp. 1102 (1975)

  • Written by Eric Miller, JD

Facts

In the field of structural analysis, computer models were generally limited to straight-sided elements. This gave rise to interest in a program that could incorporate curved and irregularly shaped structures, which were known in the field as isoparametric elements. Karan Surana (defendant) and Kant Kothawala (defendant), employees of Ohio-based Structural Dynamics Research Corporation (SDRC) (plaintiff), successfully developed a computer program incorporating isoparametric elements. Surana and Kothawala entered into employee-patent and confidential-information agreements with SDRC. Surana and Kothawala later ended their employment with SDRC and began working with the same programs for Michigan-based Engineering Mechanics Research Corporation (EMRC) (defendant). SDRC brought suit against EMRC; Surana; Kothawala; and another former employee, Robert Hildebrand (defendant), in the United States District Court for the Eastern District of Michigan under diversity jurisdiction. SDRC alleged unfair competition, trade-secret misappropriation, and breach of contract.

Rule of Law

Issue

Holding and Reasoning (Feikens, J.)

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Casebooks

Patent

Key Terms

  • Unfair CompetitionAn action for unfair competition lies in the intentional doing of some act to the detriment of another’s business without just cause or excuse.
  • ComityThe principle of respect and recognition that one political entity, such as a nation or state, accords to another, such as with respect to the operation of an entity’s laws within its territory.
  • MisappropriationThe act of dishonestly taking something that belongs to someone else and using it for oneself. Misappropriation is also a type of unfair competition claim in which the defendant appropriates the plaintiff’s intellectual property if the intellectual property at issue is not otherwise protected by copyright, patent, trademark, or as a trade secret.
  • Trade SecretA formula, method, program, device, or other business material that is kept confidential and whose competitive value is enhanced by the maintenance of such confidentiality.
  • Diversity Jurisdiction, 28 U.S.C. § 1332A federal court’s power to hear civil actions in which the parties hold different citizenship and the amount in controversy exceeds $75,000.
  • Nondisclosure AgreementAlso known as a confidentiality agreement. A contract between two or more parties that prohibits disclosure of confidential information shared among the parties.

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