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The theft of commerce secrets and techniques lawsuit between Transfer and CoStar Group has taken one other flip.
On Tuesday, CoStar revealed it positioned former Realtor.com Information & Insights editor James Kaminsky on administrative go away “out of an abundance of caution” as each portals battle over Transfer’s July 19 request that CoStar relinquish Transfer-owned information and any digital gadgets Kaminsky used after transferring to CoStar Group in January.
“Mr. Kaminsky does not have any strategic role or input at CoStar beyond the localized content he and his team are generating regarding the New York condominium market,” court docket paperwork learn. “CoStar has a wholly separate residential real estate data and information team, which is run by a different editor.”
“Out of an abundance of caution, CoStar has also placed Mr. Kaminsky on administrative leave through the continued hearing date so that he can focus on the defense of this case and to further eliminate any credible claim of imminent or irreparable harm during any continuance the Court may grant,” it added.
CoStar’s determination got here as Transfer petitioned the court docket with an ex-parte request (i.e., the expedition of an order with out giving the opposite celebration time to oppose) for an Order of Safety stopping the disclosure of confidential and commerce secret info through the discovery course of. Particularly delicate paperwork, they stated, ought to solely be out there to Transfer’s counsel and CoStar Group’s outdoors counsel.
Transfer stated the expedited approval is essential to stopping the “further [misappropriation]” of confidential info within the swimsuit, as they worry extra aggressive hurt past Kaminsky’s alleged use of 37 Transfer-owned information from January to June.
“Move naturally needs a Confidentiality Protective Order that prevents Mr. Kaminsky from seeing Move’s confidential documents yet again, in the context of this litigation,” Transfer’s submitting learn. “In addition, if Move were to disclose its trade secrets to Defendants, unredacted, without a protective order in place, that could constitute a failure of Move’s obligation to take reasonable measures to maintain the secrecy of those trade secrets.”
CoStar answered Transfer’s expedited Order of Safety request with a submitting requesting expedited discovery and the rescheduling of the preliminary injunction listening to from Aug. 15 to Sept. 19.
Of their submitting, CoStar’s counsel stated the expedited discovery would permit each events to entry unredacted variations of earlier filings and accompanying reveals so both sides can submit a “more fulsome briefing” forward of the preliminary injunction listening to. Additionally they stated that now that Kaminsky is on administrative go away, there shouldn’t be any concern about offering unredacted information through the discovery course of.
“Move has flatly rejected Defendants’ proposal to allow for such discovery even though it asked for certain expedited discovery as part of its [preliminary injunction] Motion,” the submitting learn. “It is telling that Move shows no interest in quickly discovering, in advance of the preliminary injunction hearing, the truth regarding the Defendants’ alleged conduct, and is unwilling to reveal the facts about its own investigation, the timing thereof, the supposed trade secret nature of the documents at issue, and Move’s basis for claiming that such documents were used to compete against it.”
In an emailed assertion to Inman, CoStar Group Normal Counsel Gene Boxer as soon as once more known as Transfer’s lawsuit a “PR stunt” whereas questioning Transfer’s authorized technique.
“Move took a month to file a complaint without ever approaching CoStar, and six weeks to seek an injunction,” he stated. “It has offered not a single fact in support of its core claim that CoStar used Move’s information to compete against Move. And now—stunningly—it is trying to block early discovery and a brief extension of the preliminary injunction hearing to allow for such discovery.”
“Any company with a real trade secret concern wants to uncover the facts, and fast. Move is instead trying to hide the truth,” he added. “Its request for the Court to enter an overly restrictive protective order is more of the same. Move’s efforts to conceal the truth speaks volumes. By contrast, CoStar is seeking discovery, including about Move’s delays, and is doing so on the fastest possible track.”
He continued, “We call upon Move to drop its opposition and let the truth be known. What is Move scared of?… They have not a shred of evidence to support [their claims]. The press should be asking Move a direct question: ‘What’s your proof that CoStar used Move’s trade secrets to compete against Move?’”
A Realtor.com spokesperson stated the corporate “doesn’t comment on pending litigation,” nevertheless they addressed Transfer’s claims that the swimsuit is a stunt.
“We also don’t take action like this frivolously and have only had one similar case in the last decade,” they advised Inman in an emailed assertion. “We’re confident in the merits of our action, and out of respect for the judicial system, we will litigate in the courts, not the media.”
These filings are the newest chapter in Transfer and CoStar Group’s battle over which residential portal can rightfully declare the second-place spot throughout a pivotal level in a years-long portal battle.
Each firms have publicly battled over visitors claims, with Transfer placing strain on CoStar all through July via an promoting problem with the Higher Enterprise Bureau Nationwide Packages’ Nationwide Promoting Division, which beneficial that CoStar cease utilizing “Homes.com just reached 156M monthly unique visitors” and “Homes.com now has DOUBLE Realtor.com’s traffic” in its adverts as each claims are based mostly on visitors for the Houses.com Community.
CoStar Group acquiesced to NAD’s suggestions, with current promoting highlighting Houses.com’s 100 million month-to-month distinctive guests. The corporate can nonetheless spotlight visitors numbers for the Houses.com Community in the event that they “explicitly disclose it in the body of its advertisements.”
There’s no particular timeline on when the choose will reply CoStar and Transfer’s ex-parte requests.
Learn each ex-parte requests beneath.
