Minneapolis, Minnesota - July 9, 2004
In July 2002, iSystems, Inc., a leading provider of quality management and business management software, filed a lawsuit against Softwares, LLC claiming, among other things, contract violation, misuse of trade secrets and copyright violation. Later that year, Quantum Management Systems, LLC and Christ's Household of Faith, Inc. were added as defendants to this suit.
iSystems retained Richard Kempf of the Minneapolis law firm MASLON EDELMAN BORMAN & BRAND, LLP. Mr. Kempf is a renowned specialist in intellectual property litigation. Richard Kempf received substantial assistance on this case from Susan Oliphant Esq., Dawn VanTassel Esq., and paralegal Jane Love.
The case went to trial on Monday, June 21st, 2004. After 11 days of trial, a jury of twelve, presided over by the Federal Circuit Judge John Tunheim, ruled unanimously on all counts in favor of iSystems:
- Defendants (Softwares, Quantum Management Systems, and thier parent company, Christ's Household of Faith) infringed upon iSystems copyright to TQT.
- Defendants misappropriated iSystems' trade secrets.
- Defendants breached their contract with iSystems.
- Defendants breached iSystems' software licenses.
- Defendants breached their duty of good faith and fair dealing owed to iSystems.
- Defendants engaged in deceptive trade practices.
- Defendants were acting as alter-egos of each other, and therefore the parent company "Christ's household of faith" will not enjoy protection vis-a-vis the corporate entities of Softwares and Quantum-MIS.
In addition, iSystems was found not guilty of any of Defendants counterclaims.
Now that the verdict is in, there will be a brief wait for the judge to issue the judgment to permanently enjoin the Defendants, and each of its officers, agents, servants, employees, etc. from using in any way iSystem's software, copyrighted materials, derivative works, confidential information and trade secrets, and cease from competing, directly or indirectly, with iSystems.
iSystems would like to express it's heartfelt gratitude to all of it's clients for being so patient during this long and involved legal process. "We realize that we have failed to meet our clients needs, to our standards, during this crippling lawsuit, and cannot express the level of our gratitude for all the patience, assistance, and support that our clients have provided during this long period", said Jeremy Kahn, of iSystems. Mr. Kahn went on to state, "Special thanks goes out to all those that volunteered to testify on iSystems behalf during this trial".
"This lawsuit began when iSystems noticed that TQT clients were being held back and were not receiving critical updates to TQT. Now that the trial phase of this case is complete, iSystems' primary focus will be on rebuilding the company so that it can deliver to it's client base the level of service that our clients deserve."
For more information about this lawsuit see:
November 15, 2002 - iSystems Expands Copyright Infringment Lawsuit to Quantum Management Systems, LLC and Christ's Household of Faith, Inc.
July 29, 2002 - iSystems Files Copyright Infringement Lawsuit Against Softwares