Digital Control Incorporated Software Often Requires#

Was a 1971 case in which the Delaware Court of Chancery determined that widespread, confidential disclosure of trade secrets does not necessarily compromise their secrecy. Digital Computer Controls, Inc. From our revolutionary control panels, to our industry-leading IP alarm monitoring products and now to our sleek, contemporary self-contained wireless panels, DSC Data General Corp. Since the companyвЂ™s genesis, the experts at DSC have been leading the way. DSC (Digital Security Controls) is a world leader in electronic security.

Digital Computer Controls then used the design drawings to create the D-116 minicomputer, which the court determined was 'substantially identical in design' to the Nova 1200.However, the more widely applied digital PLLs (DPLLs) in power. The drawings explicitly stated that they could not be used to manufacture similar items without the written permission of Data General Corp. Before receiving the computer, Digital Computer Controls requested the accompanying design documentation from the seller and subsequently photocopied the drawings.

The court found that the adequacy of secrecy precautions was not a matter of law and must be determined at trial, thus denying summary judgment. Digital Computer Controls consequently moved for summary judgment, claiming that Data General Corporation had not adequately protected the secrecy of its proprietary information. Data General Corporation requested a preliminary injunction barring Digital Computer Controls from selling the D-116 based primarily on a claim of trade secret misappropriation.

Digital Control Incorporated Software Often Requires

Although in this case the defendant admitted to having seen the confidentiality agreement on the design drawings, the enforceability of clickwrap contracts remains a legal issue. Clickwrap and shrinkwrap licenses are commonly used to preserve the confidentiality of sensitive material in software. The nature and use of software often requires the customer have access to trade secrets embodied in the software. A permanent injunction was granted to Data General Corporation, and the case for damages was referred to a jury in Superior Court.The court's decision that widespread disclosure does not compromise a trade secret has particular implications for widely distributed software. However, Digital Computer Controls improperly used the trade secrets when designing the D-116.