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Maslon Lawyers Prevail in Copyright Infringement Trial

July 26, 2004

A team of Maslon lawyers prevailed in obtaining a favorable jury verdict in federal district court on behalf of client i-Systems, Inc., of Montreal, Quebec, Canada.

On July 9, 2004, a twelve-member jury found for i-Systems, a software development company, and its sole shareholder on claims that its former distributor had infringed i-Systems' software copyright, misappropriated trade secrets, engaged in deceptive trade practices and breached contracts and software license agreements. The jury awarded i-Systems $830,000 in compensatory damages.

"We couldn't be more pleased with the outcome of this trial," said Maslon partner and lead trial counsel, Richard Kempf. "The jurors had a lot of evidence to sift through and complex issues to analyze during the three weeks of trial. But in the end, it was evident that i-Systems' software had been copied and that defendants had engaged in unscrupulous behavior, and the verdict confirmed that."

The lawsuit, filed in July 2002, alleged that the defendants, St. Paul-based religious community Christ's Household of Faith, Inc., and its subsidiaries, Softwares, Inc., and Quantum Management Systems, LLC, had copied the TQ Tracker (TM) business management software and incorporated its elements into a competing product, called Quantum MIS. I-Systems also alleged that defendants deceived TQ Tracker customers into believing that the Quantum product was an "upgrade" to TQ Tracker. The jury found for i-Systems on all counts and rejected several counterclaims brought by defendants.

"It is a testament to our judicial system that a just result was reached here," Kempf added. The trial was held for three weeks in June and July before the Honorable John R. Tunheim of the United States District Court for the District of Minnesota.


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