Business & GA, Commercial

Kollsman Liable in IS&S Trade Secrets Case

By Tish Drake | November 8, 2007
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A U.S. District Court of Western Tennessee ruled in favor of Innovative Solutions & Support (IS&S) in its in its trade secret misappropriation case against Kollsman, Inc., saying the Elbit Systems subsidiary misused IS&S’s air data computer technology. The jury awarded damages of about $6 million against Kollsman and other defendants, including J2 Inc., Zachary Technologies, Inc., and former IS&S employees Joseph Caesar and James Zachary. The verdict also opens up the possibility of imposition of exemplary damages and other costs against the defendants based on willful conduct, Elbit said. The jury also found in favor of IS&S’s claims for breach of duty and contract, and unfair competition against the defendants. “We have long maintained that the defendants had misappropriated our intellectual property, and that Mr. Caesar, a former vice president of IS&S, and Mr. Zachary, a former sales representative of IS&S, had breached contractual and other obligations owed to Innovative Solutions & Support,” said Geoffrey Hedrick, founder and chairman of IS&S. “This verdict vindicates our assertions and reaffirms the strength and value of the company’s proprietary technologies that it uses to maintain its competitive advantage.” Elbit, which is based in Israel, said Merrimack, N.H.-based Kollsman is evaluating its options and believes it can appeal the verdict. The company plans to reflect the impact of the verdict in its third quarter results.

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