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ARTICLE · 15 JULY 2013

Use Can Be Inferred From Reliance On Trade Secrets In Developing One’s Own Technology

McDermott Will & Emery
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Finding sufficient evidence to support a jury’s verdict, the U.S. Court of Appeals for the Fifth Circuit affirmed a $45 million trade secret misappropriation award.

United StatesIntellectual Property
D. Jeremy Harrison
D. Jeremy Harrison
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Wellogix, Inc. v. Accenture, LLP

Finding sufficient evidence to support a jury's verdict, the U.S. Court of Appeals for the Fifth Circuit affirmed a $45 million trade secret misappropriation award. Wellogix, Inc. v. Accenture, LLP, Case No. 11-20816 (5th Cir., May 15, 2013) (Higginson, J.).

In an attempt to modernize construction of oil and gas wells, Wellogix developed software that allows companies to plan, procure and pay for complex well construction services online. The software featured dynamic templates able to adjust costs and supply estimates based on "intelligence" built into underlying source code. Wellogix was the only company offering such software from 2000 to 2005, but required the assistance of other companies for core accounting functions and promotion of the product. To fill these needs, Wellogix entered into agreements with SAP America and Accenture and provided its source code to both parties under confidentiality agreements.

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