Daily Newsletter

17 July 2024

Daily Newsletter

17 July 2024

California court sides with MicroVention in stolen trade secrets trial

The California court has ordered three defendants to make up for losses to the company after three former employees disclosed trade secrets to a competitor.

Joshua Silverwood July 17 2024

US-based neuroendovascular device company MicroVention has announced a court settlement against three former members of staff accused of misappropriating trade secrets about the company’s embolic coils system, access catheters and guidewires used to treat aneurysms.

The Terumo subsidiary has announced that the United States District Court for the Central District of California has issued an injunction permanently enjoining defendants David Ferrera, Nguyen Le and Michelle Tran as part of a court order banning them from using, disclosing, or possessing any MicroVention trade secret information, as well as demanding they undergo a remediation process.

MicroVention previously sued the defendants for Trade Secret Misappropriation and Breach of Contract after they became concerned that details of the company’s proprietary technology ended up in the hands of a rival medical device firm, Balt after it acquired the company founded by Ferrera after he had left MicroVention.

California court documents in the case, titled: 'MicroVention, Inc. versus Balt US', detail how when Ferrera left his employment with MicroVention in August 2007, he took with him more than 38,000 MicroVention files consisting of confidential, proprietary, and trade secret information, including confidential manufacturing procedures, technical drawings, test methods, test reports, build records and other confidential documents relating to MicroVention's products and business.

Ferrera then went on to found Blockade Medical in 2011, which would go on to be acquired by Balt in 2016 where he would take on a role as the company's president, chief operating officer, and chief technology officer. The court concluded that following his departure from MicroVention, Ferrera accessed and disclosed to others at Balt, confidential MicroVention documents in his possession.

Additionally, the court also found that Le, who was hired by Balt from MicroVention in 2011, upon leaving took with him confidential and proprietary information taken from MicroVention, including trade secrets, from his personal hard drives to his Balt-owned employee laptop, despite having signed documents promising he had returned all of MicroVention’s property upon leaving. The court also detailed how During Le's employment by Balt, Ferrera became aware of and condoned Le's possession and use of MicroVention's confidential and proprietary information.

The same situation similarly played out with Tran, who for her part left MicroVention in 2017, joining Ferrera and Le in taking with her 20,000 confidential files.

The Court concluded that MicroVention is entitled to recover from defendants a substantial monetary payment, as reflected in a separate settlement agreement. The Court also entered sanctions orders against some of the defendants related to the spoliation of evidence.

MicroVention president and CEO Carsten Schroeder said: “At MicroVention, we hold the principles of innovation, integrity, and respect for intellectual property in the highest regard. Our recent legal actions are a testament to our unwavering commitment to protecting our own intellectual property rights. However, our dedication extends beyond the confines of our own interests; we actively advocate for the respect of intellectual property rights throughout the industry.

“This is a commitment to ethical business practices and intellectual property protection is foundational to fostering a fair and competitive market.”

The announcement follows shortly after the company announced the US launch of its intracranial stent, the LVIS EVO Intraluminal Support Device. Elsewhere in the US courts, Apple has seen a huge amount of its Apple watches barred from sale in the US after losing a patent infringement case against Masimo.

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