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SMS Audio, LLC v. Belson

United States District Court for the Southern District of Florida

March 9, 2017, Decided; March 9, 2017, Entered on Docket

Case No. 9:16-cv-81308-MIDDLEBROOKS

Opinion

ORDER DENYING MOTION FOR SUMMARY JUDGMENT

THIS CAUSE comes before the Court on Plaintiffs SMS Audio, LLC ("SMS") and G-Unit Brands, Inc.'s ("G-Unit") (collectively, "Plaintiffs") Motion for Summary Judgment, filed January 30, 2017. (DE 121). Defendants Jonathan Belson ("Belson") and Eric Hammond ("Hammond") (collectively, "Defendants") filed a Response on February 17, [*2]  2017 (DE 134), to which Plaintiffs replied on February 24, 2017 (DE 142). In addition, Plaintiffs filed a Motion for Judicial Notice on March 2, 2017. (DE 143). Defendants filed a Motion to Strike on March 2, 2017. (DE 144). For reasons stated below, Plaintiffs' Motion for Summary Judgment is denied, Plaintiffs' Motion for Judicial Notice is denied as moot, and Defendants' Motion to Strike is denied as moot.

BACKGROUND

Plaintiff, SMS Audio, LLC ("SMS") is a Delaware limited liability corporation. (Plaintiffs' Statement of Facts ("PSOF"), 121-1 ¶ 1; Defendants' Statement of Facts ("DSOF"), 133 ¶ 1). Plaintiff G-Unit is a New York corporation, which licenses the trademark "KidzSafe" to SMS, as its exclusive licensee. (PSOF ¶¶ 2, 3; DSOF ¶¶ 2, 3).

Defendants are former employees of SMS: Hammond was the Vice President of Sales and Marketing, and Belson was the Vice President of Global Sales and Development. (PSOF ¶¶ 5, 6; DSOF ¶¶ 5, 6). Defendants worked for SMS from 2012 until June 2016. (PSOF ¶¶ 5, 6; DSOF ¶¶ 5, 6).

On June 14, 2012, Defendants both signed a Non-Disclosure Agreement ("Agreement") regarding their employment with SMS. (PSOF ¶ 8; DSOF ¶ 8). The Agreement states that confidential [*3]  information cannot be shared except on a need to know basis and "under the terms of a written agreement or other duty of confidentiality." (Amended Complaint, Ex. B). The Agreement also provides that an employee cannot "make use of any Confidential Information for the Employee's own purpose or the benefit of anyone other than the Company." (Id.).

During their employment, Defendants assisted in the creation and development of the KidzSafe P&L Microsoft Excel Spreadsheet ("KidzSafe P&L") and KidzSafe Proposal Marketing Powerpoint ("KidzSafe Proposal"), designed to show that KidzSafe could be a viable standalone business and to obtain investments. (PSOF ¶ 9; DSOF ¶ 9).

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2017 U.S. Dist. LEXIS 218543 *; 2017 WL 1533941

SMS AUDIO, LLC, a Delaware limited liability corporation, and G-UNIT BRANDS, INC., a New York Corporation, Plaintiffs, v. JONATHAN S. BELSON, an individual, and ERIC S. HAMMOND, an individual, Defendants.

Prior History: SMS Audio, LLC v. Belson, 2016 U.S. Dist. LEXIS 190406 (S.D. Fla., Aug. 22, 2016)

CORE TERMS

inventory, summary judgment, email, commissions, Defendants', trade secret, products, consumers, civil conspiracy, customers, domain, brand, kidzsafeproducts, unfair, confidential information, misappropriated, liquidation, trademark, business relationship, tortious interference, discounted, commerce, Parties, sales, readily ascertainable, underlying tort, expert report, Infringement, advertising, registered