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MAPINFO CORP. v. SPATIAL RE-ENGINEERING CONSULTANTS

January 5, 2004.

MAPINFO CORPORATION, Plaintiff/Counter-Defendant,
v.
SPATIAL RE-ENGINEERING CONSULTANTS, Defendant/Counter-Claimant/Third-Party Plaintiff/Counter-Defendant, v. USADATA, INC., Third-Party Defendant/Counter-Defendant



The opinion of the court was delivered by: DAVID HOMER, Magistrate Judge

MEMORANDUM-DECISION AND ORDER

Plaintiff MapInfo Corp. ("MapInfo") commenced this action against its former partner, Spatial Re-Engineering Consultants ("SRC") alleging breach of contract and related claims. Presently pending are the motion of SRC to dismiss or for partial summary judgment as to five of the six causes of action asserted by MapInfo in its amended complaint and the cross-motion of MapInfo for partial summary judgment as to three of its causes of action. Docket Nos. 73, 77. For the reasons which follow, SRC's motion is denied and MapInfo's cross-motion is granted in part and denied in part.

  I. Background

  MapInfo is a Delaware corporation with a principal place of business in Troy, New York. SRC is a California company with a principal place of business in Orange, California. Both companies create, manufacture, and market computer software. On October 1, 1998, MapInfo and SRC entered into a partnership agreement which authorized SRC to distribute MapInfo products to end users. Am. Compl. (Docket No. 59) at ¶ 5 & Ex. B; Stoecker Aff. I (Docket No. 75) at Ex. A ("Partnership Agreement"). The partnership deteriorated, both MapInfo and SRC desired its termination, and on February 15, 2002, the two parties entered into an agreement to terminate the partnership. Am. Compl. at ¶ 6 & Ex. A; Page 3 Stoecker Aff. I at Ex. B ("Termination Agreement"). The Termination Agreement established July 1, 2002 as the date for termination of the Partnership Agreement, which required in paragraph 6.5 that "[i]n the event of expiration or termination of this Agreement . . . [SRC] shall cease sales and support activity of all [MapInfo] Product(s). . . ."

  Maplnfo commenced this action on August 8, 2002 alleging in a single cause of action that SRC breached the Termination Agreement by failing to make payments to MapInfo required by the Agreement. Docket No. 1. SRC answered, asserting certain counter-claims, and commenced a third-party action against USADATA, Inc. which is unrelated to the pending motions. Docket Nos. 3, 4. On June 4, 2003, MapInfo filed an amended complaint adding five causes of action against SRC for conduct allegedly occurring after July 1, 2002. Docket No. 59. MapInfo alleges that after July 1, 2002, SRC continued to distribute MapInfo products and to advertise itself as a MapInfo partner. In response, SRC brought its pending motion to which MapInfo filed its cross-motion.

  II. Discussion

  The amended complaint asserts the following causes of action: Cause of Action No. Description

 1 Breach of contract for failure to make payments required under the Termination Agreement

 2 Breach of contract for the distribution of MapInfo products after July 1, 2002

 3 Declaratory judgment mandating an audit of SRC under the Partnership and Termination Agreements

 4 Unfair trade practices — false designation of origin Page 4

 5 Unfair trade practices — false advertising

 6 Copyright infringement

 SRC seeks dismissal or summary judgment as to causes of action 2-6. MapInfo seeks summary judgment on ...


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