Parrish

Appellants FLIR Systems, Inc. (FLIR), and Indigo Systems Corporation (Indigo) appeal from a judgment and postjudgment order awarding respondents William Parrish and Timothy Fitzgibbons $1,641,216.78 in attorney fees and costs in a trade secret action. (Civ. Code, § 3426 et seq.) The trial court found that the action was filed and maintained in bad faith within the meaning of section 3426.4 of the Uniform Trade Secrets Act. We affirm.

Facts

Indigo manufactures and sells microbolometers. A microbolometer is a device used in connection with infrared cameras, night vision, and thermal imaging. A significant portion of Indigo’s technology was created by respondent William Parrish. FLIR manufactures and sells infrared cameras, night vision, and thermal imaging systems that use microbolometers. In 2004, FLIR purchased Indigo for approximately $185 million, acquiring Indigo’s patents, technology, and intellectual property. Parrish and Fitzgibbons were shareholders and officers of Indigo before the company was sold. After the sale, they continued working at Indigo.

In 2005, respondents decided to start a new company to mass produce bolometers and gave notice that they would…