Security People, Inc. v. Medeco Security Locks, Inc.

ORDER ON MOTION FOR SUMMARY JUDGMENT

Plaintiff Security People, Inc. (“SPI”) and defendant Medeco Security Locks, Inc. (“Medeco”) are in the high security lock industry. They design, develop, manufacture and sell security related mechanisms, software and systems. They are competitors.

In this action, SPI contends that Mede-co’s products infringe one of SPI’s patents, and were developed from confidential information that SPI provided to Medeco under a confidentiality and non-disclosure agreement in 1989. The causes of action alleged in the complaint are: (1) misappropriation of trade secrets; (2) breach of contract, the 1989 agreement; (3) unfair competition under the California Business and Professions Code; and (4) infringement of SPI’s ’043 patent. Medeco denies the allegations, and filed a counterclaim which is not at issue in the pending motion.

I.

Medeco has brought a motion for summary judgment on all four causes of action. Medeco contends that SPI’s state law claims (causes of action 1, 2, and 3) are barred by a 1995 settlement agreement between the parties. Medeco also contends that the fourth cause of action, patent infringement, is barred by collateral estoppel,…