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December 6, 2016

California Court Enters Preliminary Injunction for Trade Secret Theft against Former Employee of Global Manufacturer of Fire and Gas Monitoring Systems: bit-x-bit Provides Forensic Analysis and Supporting Declaration

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In General Monitors, Inc. v. Detectors, Incorporated and Wing Lam, Case No. 30-2-16-00865073, Judge James Di Cesare for the Superior Court of the State of California issued a preliminary injunction on November 14, 2016 against the defendants from “using, disclosing, disseminating, distributing or copying any information belonging to General Monitors” including any formula pattern, compilation, program, device, method, technique, or process relating to any product that Lam worked on during his employment with General Monitors.  

Represented by Jayme Butcher and Amy Coles of Blank Rome LLP, General Monitors alleged in its amended complaint that Lam, a former engineer and project manager for General Monitors’ product the FL3100 flame detector,  “secretly” copied and took General Monitors’ most sensitive and confidential trade secrets prior to his resignation in August 2015. General Monitors further alleged that Lam “illegally gave those trade secrets to his new employer, co-defendant, Detectors, Incorporated” so that Detectors, Incorporated could build and launch a flame detector product identical to General Monitors’ product.   The amended complaint set forth claims for breach of contract, violation of the California Uniform Trade Secrets Act, tortious interference with contract and replevin.

bit-x-bit examined Lam’s two General Monitors’ computers.   In a declaration in support of General Monitors’ motion for preliminary injunction, Brett Creasy, bit-x-bit’s Director of Digital Forensics, determined that multiple USB storage devices had been inserted into Lam’s General Monitors’ computers prior to his departure.  Mr. Creasy’s investigation also revealed that Lam accessed nearly 300 files and folders from USB storage devices.  Additionally, Mr. Creasy determined that Lam had forwarded several emails from his General Monitors’ email account to his Detectors Incorporated email account containing General Monitors’ information, including General Monitors’ drawings.

In addition to enjoining Lam and Detectors Incorporated from using General Monitors’ information, the court ordered Lam to delete 38 specific documents belonging to General Monitors, which were stored on Lam’s personal computer, and to delete all copies of such documents in his possession.  Last, the court ordered Lam to provide General Monitors with a declaration under penalty of perjury attesting to the destruction of General Monitors’ information within five days of its order.   

A copy of the Order and Preliminary Injunction may be accessed in View PDF.