Intellicad Tech. Consortium v. Suzhou Gstarsoft Co.

Intellicad Tech. Consortium v. Suzhou Gstarsoft Co.

Opinion

 [*792]  OPINION AND ORDER

Michael H. Simon, District Judge.

The IntelliCAD Technology Consortium (the ITC) brings this lawsuit against Suzhou Gstarsoft Co. Ltd. (Gstar). The ITC alleges copyright infringement, trade secret misappropriation, and breach of fiduciary duty. Gstar seeks reconsideration of a portion of the protective order previously entered in this case. Gstar also moves for an order compelling the ITC to respond to Gstar's interrogatories and for a further protective order. As explained below, the Court partially grants and partially denies Gstar's motion for reconsideration but denies Gstar's motion to compel and for a further protective order.

BACKGROUND¹

Founded in 1999 and headquartered in Portland, Oregon, the ITC is a consortium of computer aided design (CAD) software developers who develop and [**2]  maintain the IntelliCAD software platform (IntelliCAD). Unlike other CAD developers, the ITC does not sell its software product, IntelliCAD, directly to end users. Instead, the ITC licenses IntelliCAD to consortium members, who pay annual fees for permission (a) to sell IntelliCAD "as is" to third-party end users or (b) to build their own proprietary products "on top of" IntelliCAD. The ITC's primary source of revenue comes from licensing the IntelliCAD platform and various components to its members. The IntelliCAD platform underlies the portfolio of all CAD products offered by consortium members. The ITC owns more than 20 registered U.S. copyrights relating to its IntelliCAD source code.

IntelliCAD is not conventional "open source" software. Access to the source code is allowed only to members, employees, and contractors of the ITC on an "as needed" basis. The ITC protects its source code by placing it in a secured source code repository. To secure source code access and distribution, the ITC requires members to sign restrictive covenant agreements and license back to the ITC bug fixes, modifications, and enhancements that members develop. ITC employees, contractors, and members' employees [**3]  must sign agreements that require them to protect and maintain the confidentiality of the ITC's trade secret information, including the IntelliCAD source code. According to the ITC, it provides a professional "shared development" environment for a limited scope of members, employees, and contractors, with access to proven development and testing tools.

Gstar was founded in Beijing, China in 1992. In 2001, Gstar relocated its headquarters to Suzhou, China. Gstar provides two-dimensional and three-dimensional CAD software and solutions for industries involving: architecture, engineering, and construction; mechanical and manufacturing; electrical and electronics; and geographic information systems, including surveying and mapping. Gstar provides CAD software and solutions for customers and partners in China and other countries. Gstar has approximately 400 employees, including executives, programmers, developers, and sales personnel, all of whom are based in China.

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