ActiveRain Claims Move.com Violated the California Trade Secrets Act
September 27, 2007 by Stefan SwanepoelIs there a secret sauce and lightning in a bottle?
ActiveRain is suing Move for $33 million for their 'secret sauce’ after Move.com backed out of an acquisition. They said we had captured 'lightning in a bottle' with respect to our social networking and blogging community services and then they turned around and walked out on the deal.
Allegations by ActiveRain include breach of contract, unjust enrichment, promissory-equitable estoppel, unfair competition, fraud-deceit and violation of the Washington Unfair Business Practices Act.
In its response to the lawsuit, Move denies "that ActiveRain's confidential information has value" and was already “generally known to the public."
So does Active Rain have a ‘secret sauce’ and have they bottled ‘lightning in a bottle’ or is their social networking and blogging structure pretty much general knowledge?
What are your thoughts…














Hmmm. It'd be interesting to see this play out in a trial. Seems like AR has already valued their secret sauce at $33 mil. Will a jury see it that way?
I can't imagine a trial being anything less than a bad dream for Move. Wasn't it just a few months ago that Realtor.com (operated by Move) announced they'd be offering free Blogs to Realtors?
Hmmm, so let me see: Move lets on back in March that they'll be buying AR. And, in anticipation of adding the special sauce to their own lunch menu, instructs AR to cease any other partnerships with Move's competitors, potential other M&A opportunities and hold-off on financing plans. But, in the meantime, Move's free to continue their own development and competitive plans? ("And, oh by the way, how about e-mailing me those docs I asked for about your platform and membership?")
Then, a little while later: "Thanks for e-mailing me those docs. Oh, and on that other thing? Fuggedaboutit. But, hey, check out the cool new back-end we just built for Realtors to create free blogs."
Yep. I think it'll make interesting reading. The only thing that'll put a damper (pun intended) on the whole Moving-Rain-thing is if they settle out of court "for an undisclosed sum" with neither party admitting to wrong doing. Then I'll never know how much the darned sauce retails for. ;-)
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