On August 7, 2018, U.S. District Judge Stephen Wilson granted summary judgment in favor of StubHub over allegations that StubHub breached the Defend Trade Secrets Act (“DTSA”) when they hired three employees from a startup company who allegedly used proprietary data from their former company for apps they developed for StubHub.
Judge Wilson explained that plaintiff Calendar Research LLC failed to prove that the apps developed by their former employees contained the same code or other similarities to “Klutch,” the mobile app created for StubHub by the three former employees.
Judge Wilson further stated: “Based on the evidence before the court, and upon that record alone, there is no genuine dispute of material fact that the Klutch code is not a protectable trade secret, even as a compilation…The court is not ruling here that Klutch code could never be a protectable trade secret, or even that some compilation in the code is not protectable; however, the court finds that based on the information before it, there is no dispute that of material fact that the relevant parts of the code here were not protectable and that plaintiff has not shown any novel compilation beyond mere speculation based on those facts.”
The case is Calendar Research LLC v. StubHub Inc. et al., case number 2:17-cv-04062, in the U.S. District Court for the Central District of California.
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