Federal Judge In California Holds That Unauthorized Use Of Copyrighted Password-Protected Computer Diagnostic Software Can Be The Basis Of A Copyright Infringement Suit and Trade Secret Misappropriation Claim

Burroughs Payment Services manufactures document scanning equipment for banks and others. Embedded in the equipment are copyrighted computer programs, accessible only by entering a password, which provide the user with software to diagnose problems with the equipment. While servicing the equipment of a Burroughs customer, Symco Group allegedly accessed and used Burroughs’ software without that company’s authorization. 

Burroughs promptly sued Symco in the federal court in Atlanta, alleging copyright infringement and trade secret misappropriation. More than 18 months later, following various rulings by the Atlanta court, Burroughs dismissed its complaint there without prejudice and re-filed early this year in the Northern District of California. A few weeks ago, Magistrate Judge Spero in the California court denied most of Symco’s Rule 12(b)(6) motion to dismiss. Burroughs Payment Sys., Inc. v. Symco Group, Inc., 2012 WL 1670163 (N.D. Calif., May 14, 2012).

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