North Atlantic Instruments, Inc., manufactured electronic equipment used on ships, tanks, and aircraft. In August 1994, North
Question:
The specialized nature of TMI's business made the identity of the relatively small number of engineers who required its products especially crucial to its business success. Even in companies employing thousands of engineers, a very small number of those engineers-sometimes only two-might need the technology produced by TMI. The identity and needs of that small number of engineers (i.e., TMI's client contacts) would have been very difficult for any company to derive on its own. TMI's list of client contacts was among the intangible assets for which North Atlantic paid when it acquired TMI. North Atlantic retained Haber as president of its new TMI division. An employment agreement between North Atlantic and Haber ran until July 31, 1997. Its terms obligated Haber not to disclose North Atlantic's customer lists, trade secrets, or other confidential information, either during his employment by North Atlantic or after that employment ceased. As president of the TMI division, Haber had access through desktop and laptop computers to information about North Atlantic's technology and customer bases, including lists of clients and information about their individual product needs and purchases. In July 1997, Haber left North Atlantic to join Apex Signal Corp., which manufactured products targeted toward the same niche market as North Atlantic's TMI division. According to North Atlantic, Apex began targeting North Atlantic's customer base, with Haber allegedly asking clients he had dealt with at North Atlantic and TMI to do business with Apex. North Atlantic also contended that Haber had taken its confidential client information with him when he joined Apex. North Atlantic sued Haber and Apex for misappropriation of trade secrets and requested a preliminary injunction. The federal district court later preliminarily enjoined Haber and Apex from using the individual client contacts Haber had developed at North Atlantic and TMI. Haber and Apex appealed.
Was the court correct in issuing the preliminary injunction?
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
Question Posted: