Secure Logic claims victory in lawsuit against former executive

The Supreme Court of New South Wales has sided with Sydney managed services provider Secure Logic in its years-long lawsuit against a former executive.

The company in 2016 took its former chief operating officer for one of its overseas subsidiaries to court for allegedly stealing proprietary information following his departure.

The executive also alleged that Secure Logic founder and former CEO Santosh Devaraj had authorised some surveillance on him through the use of a keylogger. Court documents reveal that Devaraj admitted to the allegation.

The most recent decision published by the court on 11 June 2021 ordered both parties to provide short minutes of order to help the court determine the costs to be paid, but had also sided with Secure Logic and determined that the former executive potentially was in contempt of court.

“Secure Logic has been substantially but not entirely successful,” the decision read. “This mixed result means that the parties may wish to put submissions as to costs. And a party may seek a special costs order. The court’s orders will provide the parties with an opportunity to put submissions as to costs.”

The decision also determined whether the authorised surveillance on the executive would now be made inadmissible to the case and was referred to Commonwealth Attorney-General Michaela Cash on whether further action would be pursued.

As of Friday, CRN understands that the surveillance charge won’t be acted on any further and that Secure Logic has declared victory with the proceedings. The parties are now discussing costs.

Commenting on the outcome, the chief executive of Secure Logic parent Tesserent Julian Challingsworth said he and the rest of the company are pleased with the outcome.

“For us it was a case that was about protecting our intellectual property and our assets and a lot of investment from a lot of people that have worked in the organisation,” Challingsworth told CRN.

“It was a long case and it was a complex case, but fundamentally, I think it's a really good case for us and it's a really good outcome for small business and technology companies generally because it says when you invest in IP and create great ideas, and then you build that IP and you put your blood sweat and tears, the courts are going to respect your right to own that IP and not have it misappropriated in it in any way.”

“It was a big commitment from Santosh [Devaraj] to commit that much money for a small business to protect it — he’s so passionate about the products he develops and the business is built around those products and I think he felt it was the right thing to do and you know we completely support that for him.”