Storage Competitor Lawsuit: MBX Vs. Tom Larson

Published May 24, 2023 11:54 AM

Tom Larson has been a leader at 3 notable storage competitors in the last 3 years, leaving BCD as CTO, briefly becoming director of safety and security at competitor MBX and now serving as president at Velasea.

IPVM Image

Now MBX is suing Larson and alleging he stole trade secrets when he left the company in October 2021 for his current employer.

In this note, we examine the allegations in MBX’s complaint, Larson’s response in court, and statements to IPVM by his attorney, and issues the dispute raises for both companies.

For background on the companies mentioned, see Velasea OEM Systems Builder Profile, BCD And Genetec Breakup, and PE Firm Invests Into BCD.

Executive *******

*** ****** ** *** ******* *** whether ****** **** ********* ***'* ***** secrets *** ******* ** *** ***** by ***-************ ********** **** ** ***** working ** *******.

******, *** *** ****** ** *** industry *** **** **** ** *****, alleges ** *** *** ******* *** agreement. ** **** ****** **** *** only ******** *********** ** *** ****** to ***** ** *** *** **** for ********* ** *** ******** *************.

*** **** ** ****** **** *** discovery ***** ** *********** *** * trial, *** ** ** ***, ******* side ** ******* ***** ** ******* down. ******** ********* *********** *** ******* knowledge ********* ********** ******* ***** ******* are *** ********** ***** ******* ***** federal ***.

*** ******** ******** ** ********** ***** **************** ** *** ******** *** ******** the *********** **, ******* *** ******* protected ** **** ****** ****, *** what ********* *** ******* ***** ********** the ****.

MBX’s ******

*** ************, ********-******** ******* ******** ******* **** ******“********* * **** ******** ** ***’* files” ** *** ****** ******* ** to *** ********* ********* ********* *****, “discrete ******** ************* ***** ******* ** MBX,” ******* ****** *** *** ***********, products **** ** *********, ********* **************, account *********** *** *********, ******* ********* results, *** ********* *****.

IPVM Image

*** ************* ******'* ******* ** * resignation ***** ****** ******* ** "*** terminated" ** *** *******.******'* ******** ******* ******** ** ********* *** ******** ******* at ******* ***** ******* ****.

*********** *** *********:

****** *** ********** ************* ** ***** per ***** **** ***’* *******; *******, beginning ** ********* **, ****, ****** downloaded **** *** ***** **** ***’* system ** * **-*** **** *****.

****** **** **** **** *****, ****** began ***** *** ******** ****** *** MBX ******** ******* ** *** ***-****** laptop, ** ********* ** ******* ******

*** **** **** ** **** “******** learned ** **** **********,” ***** ********* violated * *************** *********, ***** * customer ******** ** **** ****** *** successfully ********* *** ********,” ********* *** company ** ********** * ******** ******. The ************** ** *** *********, ***** ** ******* **** ** the ******** ******** ** ********, **** it *** ******** “***********” ******* ** a ****** ** ******. *** ********* alleges:

****** *** ***************** *** ********** *********** on **** ********* ***********, ******** ** a ******** ** ********* ***’* ************* with *** ********* *** ***** **** away ** ********* *** ************ *** trade ****** *********** ** ******* ** an *** ********* *** ******** ** his *** *** *** ****. *** unseemly ******* ******* ******** *** *********** covenants ** ****** ** **** ** his ********** **** ***.

*** ****** **** ****** ******** *** contract, ******* ** ******** ************, *** violated *** ******* ***** ******* ***, the ******* ****** ***** ******* ***, the ******* ******** ***** *** ***** Act, *** ********* ****** ** *** former ********.

*** ** ******* *********** ******** ******* and ********** ****** ********* ******* **** any ******** ********* ** ******* ******* “that ******* ***’* ************ ***********.”

** *** *********, *** **** * “relatively *********** ****** ** ********” *** moved **** *** ** ******* ** a ****** ** ******’* *******. *** also **** **** ****** **** * customer “** *** ***** ** **** all ** ***’* ********.”

Larson’s ********

** ******** ***** ** ***** *, ****, ****** ****** **** ** *************** or ******* *** ** ***’* ************ data, ** **** ** ********* *** customers ****** *** ********** ********* ************ expired. ** **** ******* **** ** never *** ****** ** ***** ******* at *** **** ******* ** *** safety *** ******** ******.

******* ******* ***’* ***********, ** **** he *** “*** *********** *** ********** a ******* ********* *** *** ****** and ******** ******” ** *** **** as ****** *** ******** ********.

IPVM Image

****** — *** *** *** * more **** **-**** ****** ** *** industry ** ********* ********* *******, *******, BCDVideo, ****** ***********, *** ******** — alleged ** *** “****** ********* * product **** *** ******* ********* ** the **** ** ******* ***” ** March ****. ** **** ******* ** already *** ******** *************.

** *********:

** **** **** *** *** *** have *** *********** ********* ** ******* in *** ****** *** ******** *****...****** ****** *** *********** ** **** paragraph ******* ** ** ******* **** MBX *** *********** ********* ************* **** customers ** ******** ** *** ****** and ******** ******; **** ** ***’* eventual ****** *** ******** ****** ********* were ******’* ********* **** ****** ****** joined ***.

Wife's ******** ******

** ** ********* **** ****, ******’* attorney***** ********* **** *** ****** “************* **** not **** *** *** ***** ******* to ** *** *** *** *** he **** ***.” ** *** *** deny **** ****** ********** ***** ****** leaving ***, *******.

“*** ******** ** ****** ** *** take **** * ********** ********* ******** of ******” **** ***** ******* ** confidential ***********, ***** **** ****. ***** materials **** “******** ***** **** ** his ****’* ******** ******.”

“** ****’* *** *** ******** ** him *********** ******** **** *** ******** he **********,” ***** ****. ** **** MBX *** ******* ** ******* ***** of ***** ****** ********* **** “** we *** *** ** ***** ** any ********* ** **** ** *** computer *******.”

***** **** ** ******* ** “********** defend” ******, ********* ** ***** ** trial ** *********. ** **** ****:

* ***** *** ***** **** ******* to *** * ***** **** ***’* head ** ***** ****** *** **** using *** ******* [*******] *** ***** products. * ***** ***** ********* ** to ***** **** ***** ******* **** his **** *** ** **** ** they ***.

Larson’s **********

********* ***** ******** *******, ******’* ***** ******* *** ************** and ******** ********** ********* ***** ******** 2 ***** ** ******** ******* *** mobile *********** ** **** *** **** 1993-1995 *** * ***** ** * regional **** ********** ******* *** ******* from ****-****. ***** ****, ** ****** Anixter ***** ** ****** ** ****** security ******* ******* *** * ****** over * *****.

IPVM Image

**** **** ****, **’* **** ********* at * ***** ********* ********* ********* MBX. *** ******* ****** ** *** firm *** ** ***** ** ******* Grove, ********-***** ********, ***** ** **-******* and ***** ** ****** ** ***** technology *******. *** ***** ** ***** firms ********* ****** ******* *-* *****, according ** ********.

*********, ** ** ********* *** ******** partner *********, ** *** ****** *******.

********** ******* ** * “********** **********” on *** *******, ** *** **,*** followers ** *** ****, * ***** number *** *** ******** ******** ********.

Implications ** *** *******

*********** ** ********* ******** ******** **** and ***** ******* **** ***** ********* to **** *** **** ** ***** companies ** ** ****** ******** ****’* uncommon ** **** ********** **** ** SaaS *** ** *** ********* ********, which *** **** **** ********* *********** tactics. ******* *********** *** ******** *** relatively *******, *******, ** *** ******** security-related ******* ********.

* ********* ****** *** ********* *** both ****** *** *** ********** ** who ********, **** ** ***** ****. While **** ***** **** ********* * jury *****, *** ******** ***** *** likely ** ********** **** * ********** look ********** ** *** ** **** parties.

***** ********* *** ****** ******* ****** the “*********” *****, ********* *** **** time-consuming ******* ** **********. *** ******* may **** ****** ***** ***** *** the ******** ****.

*************, ***** *** ********* ******* **** Larson ****** **** ******* ** **** customers *** ******** **** **** ***, and *** **** ***** *** ****** letters ** **** ****** *** *******, the ******* **** *** **** ******* as * ********* — **** ****** the ******* ***** ** ******** *** has ****** *******.

*************** *** *** *** *** ***** to ****’* ********* ***** *** ** chose **** ** *** ****** *** did *** **** ****** ****** ******* Velasea. ** * ******** *******, *** company's*** ***** ********** ****: "********** *** ******** *** but ** ***’* ******* ** ******* litigation."

Comments (7)
UI
Undisclosed Integrator #1
May 24, 2023

*********** ** *** *** **** **** case ****** *** ***** ** ****. With ** **** ****** ** *** move, ** *** **** * ***** impact ** *** ********

(2)
(1)
(1)
UM
Undisclosed Manufacturer #2
May 24, 2023

* ***** ***** ** *** ***** to *** ***** *****. * **** been ** * ******* ********* ** the **** ** ***** *** ******** employer ****** ******** ********** **** *** to **** ** **** ****** **. This ** * ******* *********** **** in ***** *** *** ******* ***'* get **** *** **** **** **** are ****** ******. **** **** ****** to **** ****. ** *** **** in **** *** *** *******. **** of **** ***!

(5)
(4)
(2)
(1)
UI
Undisclosed Integrator #3
May 24, 2023

* ***’* ***** **** ** ******** related. ***** *** **** *** ****** in **** ******** * ** *** of ** ** *****, *** ****** is *** ****. 🐍🐍🐍

(11)
(1)
(9)
(6)
UI
Undisclosed Integrator #7
May 25, 2023

** ******* ****** *** ** *** security ******** (< * *****) *** you ********* * ******?

UI
Undisclosed Integrator #4
May 25, 2023

****, ********** ***+ ******** ****** ** his **** ******** * ***** ****** he ****....**** ** *** *****!

(3)
(6)
UM
Undisclosed Manufacturer #5
May 25, 2023

*****

(4)
UI
Undisclosed Integrator #6
May 25, 2023

** *** *** **** ** **** lines, ****** ***** *** ***** *** paper, ** *** ****** ** *** “the ******** ******* *** ** **”

*****, *** **** ** ****** ** LinkedIn *** ******** ***** *** ****, where *** **** *** *** ** reach ***.

**** **’* ***** ** ** * tough **** ****** ** **** *** some ****** ****** ******.

(2)
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