One of the most vulnerable times for any Georgia company that creates a product is during the development of the product before it is released. If someone either from within the company or outside of it releases a similar product first, it could cost a company a substantial amount of money. This scenario led to a company based in another state to file a fraud and breach of contract lawsuit against one of its former employees.
The company, called Total Recall, employed the man to assist in the creation of a virtual reality headset. When he was hired, he was required to sign an agreement to keep all information regarding the headset and its development confidential. During the course of his employment with Total Recall, others in the company provided him with information that he used to improve the design.
The Hawaii-based company alleges that the man then broke his confidentiality agreement and began marketing his own device called the Oculus Rift with another company owned by Facebook named Oculus. It should be noted that the social media site and its founder/CEO are not involved in the litigation. The court will have to determine whether the company’s allegations are true, and if so, what damages Total Recall will be awarded.
Many Georgia companies require their employees to sign confidentiality agreements. Unfortunately, some employees fail to adhere to those agreements. If that happens, the company may file a breach of contract lawsuit against the employee or employees involved. Evidence must be presented to the court to satisfy it that a breach occurred in order to be awarded monetary and non-monetary damages.
Source: gadgetinsiders.com, “Oculus Rift Creator Palmer Luckey Faces Legal Trouble for Confidentiality Breach”, Danielle Nilson, May 25, 2015