Cuppy

ORDER GRANTING IN PART PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT AND DENYING DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT

On January 27, 2006, the Court heard argument on the parties’ cross-motions for partial summary judgment. Having carefully considered the arguments of counsel and the papers submitted, and for good cause appearing, the Court GRANTS IN PART plaintiffs motion and DENIES defendants’ motion.

BACKGROUND

Plaintiff in this matter, Telephia, Inc., is a company in the “wireless market intelligence business,” an industry that “provides market intelligence information to wireless service (cell phone) providers.” Second Am. Compl., ¶¶ 4,13; Def. Answer, ¶ 13. Telephia’s services include “colleet[ing] and analyzing] data on cell phone usage for wireless service providers to help them track the performance of their programs, drive adoption and usage of their programs, and make investment decisions.” Second Am. Compl., ¶ 4. In 1999, defendant Steven Cuppy formed Criterion Wireless Corp. (“Criterion”), a competitor of Telephia. Def. Counterclaims, ¶ 7. Defendants Scott McCulley and David Simon joined Criterion shortly thereafter as shareholders. Id. Collectively,…