they had a problem with ESTIMACS. This data was used by Bryan to develop AD/TEC.
15) Bryan misappropriated the CA trade secrets listed above in item five.
16) Computer Associates possessed the trade secrets listed above in item five and the defendants are using those trade secrets in breach of two agreements executed by Bryan; and in breach of Bryan's duty as an employee given privy to said trade secrets (see Integrated Cash Mgt. Servs. Inc. v. Digital Transactions, Inc., 920 F.2d 171 [2d Cir. 1990]).
17) Prior to and during the hearing, there was a myriad of tests made of ESTIMACS and AD/TEC with numerous graphs and charts as to the similarities and/or differences in the two products. These tests and exhibits en masse did not alter the Court's finding that the defendant Bryan learned of the trade secrets in ESTIMACS while an employee, misappropriated the protected trade secrets, tried them out on HIQ and eventually developed AD/TEC, using these trade secrets.
CONCLUSION OF LAW
1) The plaintiff Computer Associates International Inc. has established, by clear and convincing evidence, that the CA-ESTIMACS product contains the trade secrets listed above. Particularly appropriate to this conclusion is the recent statement of the law in this field regarding computer software as stated by the Second Circuit in Integrated Cash Management Services, Inc. v. Digital Transactions, Inc., supra, 920 F.2d at p. 174 (2d Cir. 1990), as follows:
"Contrary to defendants' suggestion, the non-secret nature of the individual utility programs which comprise ICM's product does not alter this conclusion. '[A] trade secret can exist in a combination of characteristics and components, each of which, by itself, is in the public domain, but the unified process, design and operation of which, in unique combination, affords a competitive advantage and is a protectable secret.' Imperial Chem. Indus. Ltd. v. National Distillers and Chem. Corp., 342 F.2d 737, 743 (2d Cir. 1965); see Q-Co Indus., Inc. v. Hoffman, 625 F.Supp. 608, 617 (S.D.N.Y. 1985). As the district court found, the architecture of ICM's product, or the 'way in which [ICM's] various components fit together as building blocks in order to form the unique whole,' Integrated Cash Management, 732 F.Supp. at 374, was secret. See Dickerman Assocs., Inc. v. Tiverton Bottled Gas Co., 594 F.Supp. 30, 35 (D.Mass. 1984) ('The particular combination of procedures used in plaintiff's [computer] system, and the particular features within the system . . . are neither obvious nor easily duplicated. They constitute a trade secret.')."
2) The plaintiff Computer Associates International, Inc. has established, by clear and convincing evidence, that the defendant David W. Bryan misappropriated these trade secrets in violation of his agreements and his fiduciary and common law duty.
3) The plaintiff Computer Associates International, Inc. has established, by clear and convincing evidence, both (a) irreparable harm, and (b) a likelihood of success on the merits.
Based upon the foregoing, the motion of the plaintiff Computer Associates International, Inc. for a preliminary injunction pursuant to Fed. R. Civ P. 65(a), is granted, as follows:
The defendants David W. Bryan and Application Development Technologies, Inc. are preliminarily enjoined, pending the outcome of this action, from selling, marketing, leasing or otherwise using the AD/TEC-SYS product or any similar product derived from AD/TEC-SYS. The defendants David W. Bryan and Application Development Technologies, Inc. are preliminarily enjoined, pending the outcome of this action, from disclosing or revealing the nature of the trade secrets of CA-ESTIMACS as contained in the AD/TEC-SYS program, to any other person or entity.
Pursuant to Fed. R. Civ. P. 65(c), the parties are directed to appear for oral argument and/or a hearing on February 4, 1992 at 9:00 a.m., to determine the amount of security to be posted by the plaintiffs for the continuation of this preliminary injunction. At that time, in order to avoid unnecessary damage to the defendants, the Court will set an early trial date, subject to the Court's presently scheduled calendar.
Dated: Uniondale, New York
January 29, 1992
ARTHUR D. SPATT
United States District Judge
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