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Hi everyone, I really need some assistance. I developed software program for a customer last year. I have a corporation and I did the entire job through my company. I also hired a subcontractor to help me. The contract we signed did not have any "work for hire" or "non-compete" clauses. I signed the contract myself as a "Representative of MY company, Inc." After I finished the job, the customer wanted to buy software and some additional services from me. He wanted to me sign a contract with "work for hire" and non-compete clauses for an amount I thought was ridiculous. In the end, we could not come to an agreement. He sent me a letter from his attorney officially "terminating our independent contractor agreement." He is continuing to use my software. I am now doing more contract work with several competitors of his. This obviously upset him and he is now suing my company AND myself personally AND my subcontractor personally. He is suing me in state court for "fraud", "breach of contract", "misappropriation of trade secrets", "Conversion", and the kitchen sink. I went to see an Intellectual Property attorney, who is charging me a $15K retainer to take my case (he came highly recommeded, rated AV, and the least expensive of 3 others that I met with). I was hoping to get the personal charges dismissed ASAP b/c my business doesn't have much. However all three attorneys told me this would not be that easy due to the "torts" he was charging me with. They think that from the information I have given them in one meeting that I have a pretty good case which could take anywhere from 2-3 years to get to court and it's going to cost me big. They seem to think I have a good case, but didn't make it seem like a walk in the park either. How is this possible? I can't believe I'm getting sued personally! I thought my corporation would protect me more than this. BTW, my attorney's strategy is to counter sue for stealing my software by making illegal copies of it and take this to Federal court. He says that's where a copyright case should be and it will freak them out and get them to settle this quick. He says they filed in State court b/c it's cheaper and their attorney has probably never stepped into a Federal court. He feels they are doing this just to scare me, make me spend $, and get me to stop working with his competition. He also seems to think that in a state court, they will have to provide better evidence and have a better case in general which we really just don't think they do. Got any tips? I am trying to get as educated as possible myself. I just hate to put my entire life savings into this attorney's hands. My goal is get myself off of this thing personally and quickly. I really don't want to have to deal with this headache for 2-3 years. It costs me $ and stresses me out. Any tips on how to get my personal assets out of this and end this nightmare quickly? I just do not see why I am getting sued PERSONALLY if I did everything through my company. What is the easiest way to get these charges dismissed asap? BTW, I am not using any of his "private" information such as his customer lists or anything. I'm not sure what "trade secrets" I am misappropriating. I think he just ASSUMES that I am using his customers lists but I am not. Should I see a different type of attorney? I just figured Intellectual Property is what I'm dealing with. Even though only trade secrets applies to that. The other accusations seem to be of the business contract type. Any advice would be greatly appreciated! Thanks, Peter
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On 9 Jul 2003 21:18:20 -0700, Peter Unta wrote:
He sent me a letter from his attorney officially "terminating our independent contractor agreement." He is continuing to use my software. I am now doing more contract work with several competitors of his. This obviously upset him
I don't see how this "obviously" upset him. Are you saying it's obvious because he's suing you? Or it's obvious that, having terminated your contract, he would then be upset that you sign contracts with others?
and he is now suing my company AND myself personally AND my subcontractor personally. He is suing me in state court for "fraud", "breach of contract", "misappropriation of trade secrets", "Conversion", and the kitchen sink.
BTW, I am not using any of his "private" information such as his customer lists or anything. I'm not sure what "trade secrets" I am misappropriating. I think he just ASSUMES that I am using his customers lists but I am not.
Or, more accurately, he probably believes he can damage you by bringing such a suit, whether he believes the charge or not.
Should I see a different type of attorney? I just figured Intellectual Property is what I'm dealing with. Even though only trade secrets applies to that. The other accusations seem to be of the business contract type. Any advice would be greatly appreciated!
It does seem that the majority of the claims you listed are closer to contract law. -- \ "If trees could scream, would we be so cavalier about cutting | `\ them down? We might, if they screamed all the time, for no good | _o__) reason." -- Jack Handey | http://bignose.squidly.org/ 9CFE12B0 791A4267 887F520C B7AC2E51 BD41714B
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On 9 Jul 2003 21:18:20 -0700, Peter Unta <punta62003@yahoo.com> wrote: From your description, it sounds like they filed in state court because without a contract indicating work for hire, or a written copyright assignment, they couldn't begin to win a copyright suit as the plaintiff. It is of course possible that your software embodies some knowledge that you learned while working for the company. Presumably that's the basis for their suit against you. It will probably be messy to sort all of that stuff out. It doesn't sound like a walk in the park to me.
make me spend $, and get me to stop working with his competition. He also seems to think that in a state court, they will have to provide better evidence and have a better case in general which we really just don't think they do.
I don't know why this would be the case. Also, procedurally, I'm struggling with figuring out how you are going to get the original case into federal court, but then I'm not as up on federal civil procedure as your lawyer undoubtably is.
Got any tips? I am trying to get as educated as possible myself. I just hate to put my entire life savings into this attorney's hands. My goal is get myself off of this thing personally and quickly. I really don't want to have to deal with this headache for 2-3 years. It costs me $ and stresses me out. Any tips on how to get my personal assets out of this and end this nightmare quickly? I just do not see why I am getting sued PERSONALLY if I did everything through my company. What is the easiest way to get these charges dismissed asap?
You cannot hide from your own torts even if you incorporate. If you are being sued for actions you personally took, you can be sued personally. If you are not incorporated it might be that your company cannot be sued or sue in its own name. That's determined by the law in your state.
BTW, I am not using any of his "private" information such as his customer lists or anything. I'm not sure what "trade secrets" I am misappropriating. I think he just ASSUMES that I am using his customers lists but I am not.
Do the pleadings tell you what private information you are accused of taking? Isaac
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On 10 Jul 2003 14:06:10 +0950, Ben Finney <bignose-hates-spam@and-zip-does-too.com.au> wrote:
On 9 Jul 2003 21:18:20 -0700, Peter Unta wrote: I don't see how this "obviously" upset him. Are you saying it's obvious because he's suing you? Or it's obvious that, having terminated your contract, he would then be upset that you sign contracts with others? Or, more accurately, he probably believes he can damage you by bringing such a suit, whether he believes the charge or not. It does seem that the majority of the claims you listed are closer to contract law.
Actually, most of the claims are torts rather than contract claims. But there is definitely an IP flavor to all of them except the breach of contract. Isaac
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Isaac <isaac@latveria.castledoom.org> wrote in message news:<slrnbgpt04.97.isaac@latveria.castledoom.org>...
On 9 Jul 2003 21:18:20 -0700, Peter Unta <punta62003@yahoo.com> wrote: From your description, it sounds like they filed in state court because without a contract indicating work for hire, or a written copyright assignment, they couldn't begin to win a copyright suit as the plaintiff. It is of course possible that your software embodies some knowledge that you learned while working for the company. Presumably that's the basis for their suit against you. It will probably be messy to sort all of that stuff out. It doesn't sound like a walk in the park to me. I don't know why this would be the case. Also, procedurally, I'm struggling with figuring out how you are going to get the original case into federal court, but then I'm not as up on federal civil procedure as your lawyer undoubtably is. You cannot hide from your own torts even if you incorporate. If you are being sued for actions you personally took, you can be sued personally. If you are not incorporated it might be that your company cannot be sued or sue in its own name. That's determined by the law in your state. Do the pleadings tell you what private information you are accused of taking? Isaac
No he did not state what private information I am accused of taking. The attorney mentioned this fact too and he was going to push him to provide evidence for this. The only thing I can think of is his customer lists. However, I have not used them although I sure he thinks I'm emailing them. He also did not attach the copy of our signed contract which does not include a work for hire or non-compete. Also, I was looking through my emails and found several emails from his assistant telling me what a great job we were doing. I also found one email where he is asking me to get ideas from another website, so it's obviously not a "secret." What do you think? Any strategies on how to get rid of the personal charges ASAP? That's my big concern. My business doesn't have much. Any strategies on getting the personal stuff dismissed? Thanks, Peter
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On 10 Jul 2003 17:18:50 -0700, Peter Unta <punta62003@yahoo.com> wrote:
Isaac <isaac@latveria.castledoom.org> wrote in message news:<slrnbgpt04.97.isaac@latveria.castledoom.org>... No he did not state what private information I am accused of taking. The attorney mentioned this fact too and he was going to push him to provide evidence for this. The only thing I can think of is his customer lists. However, I have not used them although I sure he thinks I'm emailing them. He also did not attach the copy of our signed contract which does not include a work for hire or non-compete. Also, I was looking through my emails and found several emails from his assistant telling me what a great job we were doing. I also found one email where he is asking me to get ideas from another website, so it's obviously not a "secret." What do you think? Any strategies on how to get rid of the personal charges ASAP? That's my big concern. My business doesn't have much. Any strategies on getting the personal stuff dismissed?
I can't think of any way to get the personal stuff dismissed, but I am just a lay person like yourself. If you had done what your ex client alleges, you would be personally liable even if you had done it for your company, and it would be the plaintiff's choice whether he who he would sue. I think the quickest thing you can hope for is that after your lawyer does some discovery that it becomes clear at least to your opponent's lawyer that they have no case, but that your copyright infringement suit has real teeth. If there is no case, I would expect the other side to resist detailing what you are supposed to have converted. Isaac
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Have you registered the copyright? If it gets that far, you will need to register before you can file a copyright infringement suit. Timely registration is also important. If you register within three months of publication and the infringement occurs after publication, the court can award statutory damages and attorney's fees. On 9 Jul 2003 21:18:20 -0700, punta62003@yahoo.com (Peter Unta) wrote:
Hi everyone, I really need some assistance. I developed software program for a customer last year. I have a corporation and I did the entire job through my company. I also hired a subcontractor to help me. The contract we signed did not have any "work for hire" or "non-compete" clauses. I signed the contract myself as a "Representative of MY company, Inc." After I finished the job, the customer wanted to buy software and some additional services from me. He wanted to me sign a contract with "work for hire" and non-compete clauses for an amount I thought was ridiculous. In the end, we could not come to an agreement. He sent me a letter from his attorney officially "terminating our independent contractor agreement." He is continuing to use my software. I am now doing more contract work with several competitors of his. This obviously upset him and he is now suing my company AND myself personally AND my subcontractor personally. He is suing me in state court for "fraud", "breach of contract", "misappropriation of trade secrets", "Conversion", and the kitchen sink. I went to see an Intellectual Property attorney, who is charging me a $15K retainer to take my case (he came highly recommeded, rated AV, and the least expensive of 3 others that I met with). I was hoping to get the personal charges dismissed ASAP b/c my business doesn't have much. However all three attorneys told me this would not be that easy due to the "torts" he was charging me with. They think that from the information I have given them in one meeting that I have a pretty good case which could take anywhere from 2-3 years to get to court and it's going to cost me big. They seem to think I have a good case, but didn't make it seem like a walk in the park either. How is this possible? I can't believe I'm getting sued personally! I thought my corporation would protect me more than this. BTW, my attorney's strategy is to counter sue for stealing my software by making illegal copies of it and take this to Federal court. He says that's where a copyright case should be and it will freak them out and get them to settle this quick. He says they filed in State court b/c it's cheaper and their attorney has probably never stepped into a Federal court. He feels they are doing this just to scare me, make me spend $, and get me to stop working with his competition. He also seems to think that in a state court, they will have to provide better evidence and have a better case in general which we really just don't think they do. Got any tips? I am trying to get as educated as possible myself. I just hate to put my entire life savings into this attorney's hands. My goal is get myself off of this thing personally and quickly. I really don't want to have to deal with this headache for 2-3 years. It costs me $ and stresses me out. Any tips on how to get my personal assets out of this and end this nightmare quickly? I just do not see why I am getting sued PERSONALLY if I did everything through my company. What is the easiest way to get these charges dismissed asap? BTW, I am not using any of his "private" information such as his customer lists or anything. I'm not sure what "trade secrets" I am misappropriating. I think he just ASSUMES that I am using his customers lists but I am not. Should I see a different type of attorney? I just figured Intellectual Property is what I'm dealing with. Even though only trade secrets applies to that. The other accusations seem to be of the business contract type. Any advice would be greatly appreciated! Thanks, Peter
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