A small Brentwood software program growth agency has taken authorized motion in opposition to an Indian tech titan’s American division based mostly in Chicago for the misappropriation of commerce secrets and techniques.
Plaintiff firm Palinode filed go well with in opposition to multinational software program big Provana and former Palinode shopper Plaza Providers, alleging that Plaza improperly prolonged its customer-level entry to Palinode’s proprietary platform, Sonnet, for Provana’s use. Provana stands accused of then utilizing the platform at no cost to expedite its growth of a competing credit score dispute decision software program.
Palinode’s software program, Sonnet, simplifies credit score dispute investigations.
“This misappropriation of Palinode’s mental property, which we see as theft, is inflicting hurt and confusion within the market,” stated Palinode President and CEO Joe Storey. “We spent hundreds of thousands of {dollars} and plenty of hundreds of hours creating and defending the Sonnet platform. It is a superior product that Provana desperately wished to entry, however we have been in a position to uncover what they did. The authorized motion we’re taking is a David-and-Goliath battle in opposition to a multinational software program firm, however we’re decided to guard our worthwhile mental property.”
The grievance depicts Provana utilizing illicit platform entry facilitated by the Atlanta-based buyer to study the logistics of Sonnet and rapidly spin off a rival product to compete for Palinode’s market share. Palinode attributes this understanding of the course of occasions to a Plaza whistleblower admitting to Palinode that the shopper firm was being pressured by Provana to lend them their customer-level entry.
In accordance with the grievance, the whistleblower alleges that Provana had an worker entry Sonnet by masquerading as a Plaza worker, and this then expanded to incorporate an rising variety of Provana workers. Plaza had already entered right into a binding contract with Palinode which concerned facilitating third-party entry to Sonnet or disclosing commerce secrets and techniques and confidential info.
In the meantime, a Provana spokesperson stated the corporate “vigorously denies” the allegations.
“This litigation in opposition to Provana is outdated information and nothing greater than a determined try to dam honest competitors available in the market,” Provana COO Karen Powell stated. “Provana has developed an awesome answer pretty and inside the bounds of the legislation that has been efficiently embraced by the market. The press launch issued by Palinode is stuffed with one-sided allegations, and we count on Provana’s actions to be totally vindicated at trial.”
Plaza Providers representatives didn’t instantly reply to a request for remark.