ClearOne Communications, Inc. v. Bowers, No. 09-04092, 2011 BL 169413 (10th Cir. June 27, 2011) The U.S. Court of Appeals for the Tenth Circuit affirmed a district court judgment that plaintiff's former misappropriated trade secrets relating to computer software used to cancel echoes in telephone conferencing systems. The Tenth Circuit specifically affirmed the district court's grant of a permanent injunction preventing the defendants from using the trade secrets "forever," and an award of punitive damages in an amount equal to two times the actual damages.
ClearOne's Trade Secrets
Tenth Circuit Affirms Injunction Scope and Punitive Damage Award
[R]egardless of how long it takes to develop a new AEC algorithm, the evidence presented at trial refutes the Appellants' suggestion that they, or anyone for that matter, could develop AEC software identical to the Honeybee Code. As ClearOne's witnesses explained at trial, there are a host of algorithmic and programming choices that can be made in developing competing AEC software, making it difficult, if not impossible, for two individuals working independently to produce the same algorithm.
Tenth Circuit Affirms Award of Punitive Damages
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