The Trade Secrets Blog

Following Trade Secrets Litigation

Microsoft Begins Trade Secret Suit

Biggest news is that Microsoft is getting into the trade secrets fray. is reporting that Microsoft has sued its former employee Mike Mullor (no, it’s not what you think–this has nothing to do with an ex-employee taking other employees and trade secrets with him–although I can’t fault you for thinking so) for breach of contract, theft of confidential documents, non-disclosure of intentions, fraud, misappropriation of trade secrets, and unjust enrichment.

It appears that Mr. Mullor, who before beginning work at Microsoft, owned a company called Ancora that was no longer trading, applied for and got a job with Microsoft in 2005 and began compiling information allegedly in fulfillment of a scheme whereby he would take the information and then turnaround and sue Microsoft in a patent infringement case for his startup company.

According to the article: “Mullor thought he was covering his tracks by using software that deleted traces of him downloading files, but Microsoft managed to find the evidence it needed to prove he downloaded files.”

Microsoft “also managed to turn up e-mail evidence [that Mullor] was planning patent lawsuits from 2004, before he joined them.”

Mullor’s response: “These are shameful, dishonest attacks on my character by Microsoft — the company that stole my idea in the first place … Microsoft fired me for trying to protect my own invention — an invention I told them about before they ever hired me.”

Muller also claims that “Microsoft knew about the patent and Ancora and that he discussed it with Microsoft lawyers and their anti-piracy group before taking employment with the company.”

This could get very interesting. Stay tuned . . .


February 5, 2009 - Posted by | misappropriation, trade secret theft, Trade Secrets | , ,

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