TPG's intellectual property lawsuit dropped

TPG's intellectual property lawsuit against Core Desktop, a company established by former staff, has been discontinued.

Trusted Cloud, the division formed out of TPG's acquisition of IntraPower in 2011, had been pursuing Core Desktop for almost a year over allegations it stole confidential information, including cost pricing, revenue, employee plans and Microsoft license keys, and used this to poach customers.

The parties had been been exchanging volleys over the way in which evidence was obtained, with Core Desktop claiming its opponent had unlawfully obtained this information. Core Desktop argued that Trusted Cloud had reached this conclusion only after accessing its password-protected server without authorisation, and the case should therefore be thrown out based on how the file list evidence was obtained.

The case was discontinued on 17 June. It is understood the case was brought to an end by consent, but it is not known how it was settled.

Trusted Cloud previously claimed that its five former employees – all of whom had since joined Core Desktop – used confidential business information to poach as many as nine Trusted Cloud customers.

Following the filing of the lawsuit last year, Judge Katzman of the Federal Court ordered that Core Desktop be restrained from using, transmitting, disclosing or reproducing any of the copied documents. She also ordered that the company be restrained from altering, deleting, removing or destroying any of the copied or related documents.

However, following the latest developments, Judge Katzmann overturned those orders, as well as previous orders to immediately hand over any documentation taken from Trusted Cloud to its own solicitors for safe keeping.