FIRM RESOLVES TRADE SECRET AND COPYRIGHT DISPUTE INVOLVING TRADING SOFTWARE

April 8, 2017

On Friday, March 31, 2017, Vitale, Vickrey, Niro & Gasey LLP, by its lawyers Art Gasey and Oliver Yang, filed a stipulation dismissing claims against its clients Mark Burchett Ltd. and NFSx9, LLC with prejudice. Mark Burchett Ltd. and NFSx9, LLC are Chicago trading firms who were defendants in a case brought against them by Sedosoft, Inc., in the District Court of Massachusetts. The dispute centered around a previous agreement whereby Sedosoft was hired to write custom computer code for a trading platform. Sedosoft accused the defendants of copyright infringement based use of the custom code.   As set forth in the counterclaims filed by Mark Burchett Ltd. and NFSx9, Sedosoft never completed the code it was hired to write, and disclosed certain of the defendants’ trade secrets without permission along the way.

 

On summary judgement, District Court Judge Stearns dismissed Sedosoft’s infringement claims. The Court found that Sedosoft was estopped from asserting copyright infringement claims because Sedosoft, expressly and by its conduct, permitted defendants to use the source code. Additionally, Judge Stearns denied Sedosoft’s cross motion for summary judgment on most of NFSx9’s counterclaims and indicated the case would be set for trial.  Shortly afterwards, the case settled.  The terms of settlement are confidential.

 

“We are thrilled that we can finally get back to focusing on our business” said Mark Burchett, president of NFSx9 LLC.  “Having a pending claim for copyright infringement was a serious impediment to our ongoing business operations, so winning on summary judgment was important.  Oliver and Art teamed with us to save our business by taking complex issues and framing them in a way that helped the Court to provide a thoughtful, favorable ruling.”   

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