Business Contract Dispute Erupts Over Intellectual Property
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Wednesday, July 22, 2015.
Business assets include any property which a company owns in California. This can include vehicles, office equipment and even furniture. However, a business asset does not necessarily have to be a physical object. Intellectual property can also be considered a business asset and become the focus of a business contract dispute.
One company has found itself in this situation and has decided to file a lawsuit against its former employees for breach of contract. The plaintiff, LifeLock, listed five employees of Xapo as defendants in the lawsuit. LifeLock had acquired the current Xapo team as a part of its $42.6 million purchase of Lemon, a digital wallet service. The defendants listed in the complaint filed with the court included the current CEO of Xapo as well as the COO.
The plaintiff claims that the intellectual property in question was developed using the computers and resources owned by LifeLock. It claims that the defendants failed to disclose the full extent of their involvement in developing the Xapo project. The intellectual property in question eventually became Xapo's foundation for its bitcoin services. The judge in the case recently denied a request by the defendants to dismiss the breach of contract lawsuit.
As the lawsuit now enters the discovery phase, both sides will be preparing to go to court in order to argue their side of the business contract dispute. Just like any other litigation in California, the judge in the case will listen to both sides present physical evidence and offer testimony. The judge will decide the issues based upon the evidence produced, in accordance with applicable laws.
Source: coindesk.com, "Xapo Execs Lose Bid to Dismiss Breach of Contract Lawsuit", Pete Rizzo, July 13, 2015