Structural Dynamics Research Corp. v. Engineering Mechanics Research Corp. (1975) Overview | LSData

SDRC sued EMRC and three former employees for using their trade secrets, interfering with customer relations, and breaching contracts. The dispute is about two computer programs used for structural analysis, and the main issue is about the isoparametric elements used for structural analysis. The defendants had signed an agreement to protect confidential information and patents during their previous employment at SDRC. Kothawala and Hildebrand were hired to work on this program, and they submitted a proposal to SDRC outlining its importance and uniqueness. Kothawala established EMRC in Detroit after finding SDRC's offer unsatisfactory. The court ruled that the defendants before establishing EMRC developed the isoparametric program with initial encouragement and supervision from SDRC and thus are not liable for using or disclosing SDRC's trade secrets due to their employment relationship. However, they are liable for breach of their contracts and are answerable in damages if they used or disclosed confidential information, knowledge, or technology gained while employed at SDRC, even if such information, knowledge, or technology is not a trade secret.

Structural Dynamics Research Corp. v. Engineering Mechanics Research Corp. (1975)
United States District Court for the Eastern District of Michigan
401 F. Supp. 1102

Learn more about this case at https://www.lsd.law/briefs/view/structural-dynamics-research-corp-v-engineering-mechanics-research-corp-41259200

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