THE AMD Case Highlights Issues of Client Confidentiality In Age of Digital Downloads

LawFuel.com – The AMD lawsuit against former employees highlights issues relating to the confidentiality of documents and other proprietary property in the age of digital downloads.

PC Mag report that AMD has filed suit against four former employees, arguing that the group stole thousands of documents before leaving to go work for one of AMD’s biggest rivals, Nvidia.

“This is an extraordinary case of trade secret/misappropriation and strategic solicitation,” AMD said in the suit, which was filed this week in Massachusetts district court. “Thousands of AMD documents or electronic files have been taken from its facilities by employees leaving to work for its primary competitor in the graphics business, Nvidia.”

The controversy dates back to July 2012, the suit said, when Robert Feldstein left AMD. “He transferred sensitive AMD documents, and in the next six months the remaining three defendants either did the same thing, violated ‘no-solicitation of employees’ promises, or both – all obvious violations of common law, statute, and/or contracts with AMD,” AMD said in the suit, which was posted online by ZDNet.

AMD said it has evidence that Feldstein – as well as Manoo Desai and Nicolas Kociuk – transferred sensitive documents to an external storage device during their last days at AMD. “The volume of materials … exceeds 100,000 electronic files,” AMD said.

The documents in question include data that is “obviously” confidential and proprietary, AMD said. Feldstein, for example, transferred licensing agreements with “significant” customers, a document that outlined AMD’s licensing strategy, and the contents of his Outlook email account. Desai, meanwhile, transferred 200 files about “Perforce,” an AMD internal database with details about confidential work. Kociuk is accused of transferring more than 150,000 files – “believed to be full copies of AMD laptops and desktop computers,” AMD said – to an external hard drive.

Reported by PC Mag.

The ongoing issues faced by AMD and similar companies will continue apace according to many legal experts, as confidentiality and technology continue their collision course.

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