Ajaxo Inc. v. E Trade Group, Inc.

Introduction

Following a seven-week trial, on April 22, 2003, a jury found that E*Trade Group Inc. (E*Trade) had breached a mutual nondisclosure agreement it had with Ajaxo Inc. (Ajaxo) by disclosing protected information to Everypath Inc. (Everypath). The jury assessed $1.29 million in damages against E*Trade for breach of the nondisclosure agreement.

In addition, the jury found that Ajaxo was the owner or licensee of a trade secret. The jury found that E*Trade disclosed that trade secret to Everypath without Ajaxo’s consent, and that E*Trade knew or had reason to know that E*Trade’s knowledge of the trade secret was acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use. The jury determined that Ajaxo proved by clear and convincing evidence that E*Trade acted willfully and maliciously in misappropriating Ajaxo’s trade secret.

As to Everypath, the jury found that Ajaxo proved that Everypath acquired and used Ajaxo’s trade secret without Ajaxo’s express or implied consent. Furthermore, the jury found that Ajaxo proved that Everypath knew or had reason to know that Everypath’s knowledge of the trade secret derived from or through a…