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Company to pay $52 million in trade secret case

OUT-LAW News, 30/10/2000

Aclara BioSciences, a US developer of lab-on-a-chip technology has been ordered to pay rival company Caliper Technologies $52 million in a lawsuit concerning the alleged disclosure of Caliper’s trade secrets to Aclara by a patent lawyer who represented both companies during overlapping periods.

Caliper successfully argued that patent lawyer Dr. Bertrain Rowland represented both Aclara and Caliper in December of 1995 and early 1996, that he misused Caliper’s trade secrets, and that Aclara is liable for Dr. Rowland's actions.

“We are naturally very disappointed by this outcome,” said Joseph Limber, President and CEO of Aclara. “However, we believe that we have a strong basis to appeal this ruling on multiple grounds including the exclusion from evidence of key Aclara documents, the legal basis for imputed liability, and the speculative nature of the damages claim."

Mr. Limber added:

"One fact on which both sides agreed in this trial is that Aclara had no knowledge of Dr. Rowland's simultaneous representation of both companies in late 1995 and early 1996. Caliper's case rested on the legal theory of imputed liability. Namely, Caliper argued that in providing legal services to Caliper, Rowland was acting as Aclara’s agent, thereby rendering Aclara liable for any alleged wrongful acts committed by Rowland in that representation."

Caliper showed that its IPO value was reduced because of the litigation between Caliper and Aclara in the absence of which Caliper's IPO would have provided the company with tens of millions of dollars in additional IPO proceeds.

See also our section on protecting brands and ideas.

 

 

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