SuccessFactors, Inc. v. Halogen Software, Inc.

Filing 22

STIPULATION AND ORDER. Signed by Judge ARMSTRONG on 12/10/10. (lrc, COURT STAFF) (Filed on 12/10/2010)

SuccessFactors, Inc. v. Halogen Software, Inc.

Doc. 22

1 2 3 4 5 6 7 8 9 10 11 12
FENWICK & WEST LLP
A T T O R N E Y S A T LAW M O U N T A I N VI E W

PATRICK E. PREMO (CSB No. 184915) [e-mail] LIWEN A. MAH (CSB No. 239033) [e-mail] SEBASTIAN E. KAPLAN (CSB No. 248206) [e-mail] GUINEVERE L. JOBSON (CSB NO. 251907) [e-mail] FENWICK & WEST LLP Silicon Valley Center 801 California Street Mountain View, CA 94041 Telephone: [phone] Facsimile: [phone] Attorneys for Plaintiff SUCCESSFACTORS, INC. CLAUDE M. STERN (CSB. No. 96737) [e-mail] EVETTE PENNYPACKER (CSB No. 203515) [e-mail] QUINN EMANUEL URQUHART & SULLIVAN, LLP 555 Twin Dolphin Dr., 5th Floor Redwood Shores, California 94065 Telephone: [phone] Facsimile: [phone] Attorneys for Defendant HALOGEN SOFTWARE, INC. UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA OAKLAND DIVISION SUCCESSFACTORS, INC., a Delaware corporation, Plaintiff, v. HALOGEN SOFTWARE, INC., a Canadian corporation, and DOES 1 through 5, inclusive. Defendants. Case No. 10-05471-SBA

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

STIPULATED ORDER FOR PROVISIONAL RELIEF AND COMMENCEMENT OF DISCOVERY
Courtroom: Judge: 1, 4th Floor Honorable Saundra Brown Armstrong

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

CASE NO. 10-05471-SBA
Dockets.Justia.com

1 2 3 4 5 6 7 8 9 10 11 12
FENWICK & WEST LLP
A T T O R N E Y S A T LAW M O U N T A I N VI E W

STIPULATION WHEREAS, Plaintiff SuccessFactors, Inc. ("SuccessFactors") has alleged in its Complaint that Defendant Halogen Software, Inc. ("Halogen") procured, via a company purporting to be the Magnus Group, certain information (the "Procured Information," defined below) from and about SuccessFactors and materials (the "Procured Files," defined below); WHEREAS, nothing in this Stipulation or any related Order (i) is in any way intended to or shall be construed to prevent vigorous competition in the marketplace between SuccessFactors and Halogen, and (ii) is intended to be or shall be construed to be an admission by either party on the merits of the claims or the scope of the ultimate remedies to which either party hereto may be entitled; WHEREAS, on December 6, 2010, SuccessFactors filed motions seeking provisional injunctive relief to prevent Halogen from conducting any activities by or through the Magnus Group and from using any of the Procured Information or Procured Files; WHEREAS, the parties agree that during the pendency of this litigation, Halogen will not conduct any activities by or through the Magnus Group or any Magnus Group denominated website or use any of the Procured Information or Procured Files; WHEREAS, the Procured Information is defined as information relating to SuccessFactors obtained or created by any person using the Magnus Group or any associated Magnus Group denominated website, including but not limited to the information described in the attached Exhibit A, which includes without limitation any part, compilation, summary, or reproduction thereof; WHEREAS, the Procured Files are defined as documents, including without limitation any part, compilation, summary, or reproduction thereof, obtained by any person using the Magnus Group or any associated Magnus Group denominated website, including but not limited to the documents described in the attached Exhibit B; WHEREAS, the Magnus Group website had (until it was taken down on or about December 1, 2010) the domain name www.magnus-group.com; WHEREAS, in light of this stipulation, SuccessFactors will withdraw its Motion for
STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

-1-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Temporary Restraining Order [Docket No. 10] and Motion for Expedited Discovery [Docket No. 8]; NOW, THEREFORE, Halogen and SuccessFactors STIPULATE AND AGREE that during the pendency of the trial of this action, or until otherwise ordered by this Court, that Halogen--and its officers, agents, servants, and employees, and all persons acting under, in concert with or for them, or anyone who receives actual notice of this Order, whether or not in the United States--are hereby prohibited pending the trial of this action from doing or attempting to do, the following: a. Disclose, publish, reproduce, use or communicate for any purpose other than this

case the Procured Information and/or Procured Files, in whole or in part, including but not limited to conducting such activities in connection with the planning, design, development, promotion, marketing, offer for sale, distribution, or support of human resource management products. b. Disclose, publish, reproduce, use or communicate any nonpublic SuccessFactors

information procured directly or indirectly, by providing false or misleading identifying information, such as through use of an alias name or website, including but not limited to conducting such activities in connection with the planning, design, development, promotion, marketing, offer for sale, distribution, or support of human resources management products. c. Interfere with or disrupt any prospective economic relations SuccessFactors has with

any prospective customers through any use of the Procured Information, Procured Files, and/or the Magnus Group alias or website. d. Provide false or fictitious identifying information to SuccessFactors in an effort to

obtain SuccessFactors non-public information. e. Attempt to, or engage in, contact with SuccessFactors, including but not limited to

SuccessFactors' computers or Web meetings, by providing false, fictitious or fraudulent identifying information. f. Affirmatively seek to obtain, directly or indirectly, confidential or proprietary

information from SuccessFactors.

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-2-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

g.

Market, sell, or support any products and services that were planned, designed, or

developed in whole or in part based on Halogen's use of the Procured Information or Procured Files. Defendant Halogen, and its agents, servants, and employees, and all persons acting under, in concert with or for them, or anyone who receives actual notice of this Order are further ordered, pending the trial of this action, to sequester, and thereafter deliver to their counsel of record for both parties in this action, any Procured Information and any Procured Files, emails, memorandum, analysis, notes, presentations, sales materials or other documents referencing or incorporating the same within Halogen's possession, custody or control. For purposes of this paragraph, "sequester" means that Halogen shall not retain custody, control or possession of any such Procured Information or Procured Files. In addition, Halogen agrees to provide the following: On or before December 13, 2010 by email, Halogen's Chief Financial Officer and Halogen's retained forensics consultant will provide sworn declarations to SuccessFactors' counsel of record describing all steps taken by Halogen to identify and sequester the Procured Information and Procured Files. The retained consultant shall maintain a record of all persons, machines, data storage devices, and document locations that have been the subject of its and Halogen's efforts to sequester and preserve documents. On or before December 13, 2010, Halogen shall identify and provide by email to SuccessFactors counsel of record a list of Halogen custodians in possession of the Procured Information and Procured Files along with a list of records obtained from each custodian. This Stipulated Order shall remain in full force and effect unless and until a further order of this Court issues dissolving or modifying the same. Halogen agrees to cooperate and assist in any manner necessary to ensure that this Stipulated Order is fully recognized and, if required, enforced by any court, tribunal, regulatory or administrative body having jurisdiction in Canada. Nothing in this Order shall preclude Plaintiff from seeking broader or alternative provisional relief in the event it discovers evidence to support such relief. Defendant shall deliver by mail or email a copy of this Stipulated Order to its officers, agents, servants, employees, successors and assigns within
STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-3-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

five (5) business days from the date of this Order. DISCOVERY 1. Pursuant to Federal Rule of Civil Procedure 26(d)(1), the parties may commence

discovery. SuccessFactors' discovery accompanying its Motion for Expedited Discovery shall be deemed served on Halogen as of December 6, 2010. 2. SuccessFactors' Motion for Temporary Restraining Order [Docket No. 10] and

Motion for Expedited Discovery [Docket No. 8] are withdrawn upon entry of this Stipulated Order.

Dated: December 9, 2010

FENWICK & WEST LLP By: /s/ Patrick E. Premo PATRICK E. PREMO Attorneys for Plaintiff SuccessFactors, Inc.

Dated: December 9, 2010

QUINN EMANUEL URQUHART & SULLIVAN, LLP

By:

/s/ Evette Pennypacker EVETTE PENNYPACKER Attorneys for Defendant Halogen Software, Inc.

ATTORNEY ATTESTATION Pursuant to General Order 45, I hereby attest that that concurrence in the filing of this document has been obtained from the signatory indicated by a `conformed' signature (/s/) within this e -filed document. /S/ Patrick E. Premo Patrick E. Premo

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-4-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

PURSUANT TO STIPULATION, IT IS SO ORDERED. THIS COURT HEREBY REQUESTS the aid and recognition of any court, tribunal, regulatory or administrative body having jurisdiction in Canada, to give effect to this Order and to assist Halogen and SuccessFactors and their respective agents in carrying out the terms of this Order. All courts, tribunals, regulatory and administrative bodies are hereby respectfully requested to make such orders and to provide such assistance to Halogen and SuccessFactors as may be necessary or desirable to give effect to this Order, to grant representative status to their counsel, as officers of this Court, in any foreign proceeding, or to assist them and their respective agents in carrying out the terms of this Order.

Dated: December 10 2010 SAUNDRA BROWN ARMSTRONG United States District Court Judge

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-5-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12
FENWICK & WEST LLP
A T T O R N E Y S A T LAW M O U N T A I N VI E W

EXHIBIT A PROCURED INFORMATION 1. Information relating to product features, limitations, interface, ease of use, and

expediency, obtained during the August 19, 2010 SuccessFactors Web Meeting and live demonstration for the Magnus Group. In particular, the meeting covered details, explanations, and displays of SuccessFactors' tools for the following: (a) (b) (c) (d) (e) (f) (g) (h) 2. Performance Management for appraising employees Talent Management and Recruiting Goal Management for aligning goals of individual employees to the overall organizational mission 360-Degree Reviews Compensation Management Career and Development Planning Module Calibration for ensuring consistent rating and compensation of employees Stack Ranker for comparing employee competencies

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Information relating to product features, limitations, interface, ease of use, and

expediency, obtained during the August 27, 2010 SuccessFactors Web Meeting and live demonstration for the Magnus Group. In particular, the meeting covered details, explanations, and displays of SuccessFactors' new CubeTree functionality, an online collaboration suite that enables employees to connect, communicate and collaborate efficiently and securely. 3. Information relating to product features, limitations, interface, ease of use, pricing,

and expediency, obtained during the August 31, 2010 SuccessFactors Web Meeting for the Magnus Group. In particular, the meeting included detailed discussion of tools offered only by SuccessFactors. 4. Pricing information relating to SuccessFactors' newly announced CubeTree

collaboration system and related professional services. 5. Pricing information relating to SuccessFactors tools and professional services for

Calibration, Succession Management, Compensation Management, 360 Degree Reviews, Career
STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-6-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

and Development Planning, Recruiting Management, Spanish Language Pack, Stack Ranker, Goal Management, Employee Profile, and Performance Management, as well as related professional services. 6. Pricing and other information relating to SuccessFactors training, including

information about training delivery methods, types of courses and targeted audiences, implementation systems, and average lengths of time to implement modules. 7. Information relating to SuccessFactors solutions provided by SuccessFactors

employee Scott Larkins to the Magnus Group or Halogen, including but not limited to the following topics: · · · · · · 8. Performance Manager and Total Goal Management Implementation Approach & Scope Career and Development Planning Implementation Approach & Scope 360/Multi-Rater Implementation Approach & Scope Succession Planning / Talent Management Implementation Approach & Scope SuccessFactors Language Pack language enablement and support SuccessFactors BizX Insights regarding SuccessFactors' Business Execution Software strategy

Information relating to SuccessFactors' sales or marketing strategies, including but

not limited to information relating to sales demonstrations and the customization or pricing of products and services for customers. 9. Information relating to the design, user interface, integration, or usability of

SuccessFactors solutions, including without limitation information relating to SuccessFactors' design, maintenance, customization, or delivery of its products and services. 10. Information relating to configuration or implementation of SuccessFactors

solutions, including scopes of implementation project timelines, and roles and responsibilities of the implementation teams. 11. Information relating to SuccessFactors product roadmaps or planned features.

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-7-

CASE NO. 10-05471-SBA

1 2 3 4 5 6 7 8 9 10 11 12
FENWICK & WEST LLP
A T T O R N E Y S A T LAW M O U N T A I N VI E W

EXHIBIT B PROCURED FILES 1. Emails, inclusive of any attachments, from SuccessFactors to the Magnus Group,

including but not limited to emails sent to "Anna Rodriguez" or any "@magnus-group.com" or "@halogensoftware.com" email address. 2. Meeting invitations, inclusive of any attachments, from SuccessFactors to the

Magnus Group, including but not limited to meeting invitations sent to "Anna Rodriguez" or any "@magnus-group.com" or "@halogensoftware.com" email address. 3. 4. Pricing proposals obtained by the Magnus Group or Halogen from SuccessFactors. Recordings, notes, or other documents relating to SuccessFactors Web meetings or

telephone meetings held for the Magnus Group, including but not limited to meetings on August 19, August 27, and August 31, 2010. 5. 6. Presentations that the Magnus Group or Halogen obtained from SuccessFactors; Documents entitled or described as: · · · · · · 7. Performance Manager and Total Goal Management Implementation Approach & Scope Career and Development Planning Implementation Approach & Scope 360/Multi-Rater Implementation Approach & Scope Succession Planning / Talent Management Implementation Approach & Scope SuccessFactors Language Pack language enablement and support SuccessFactors BizX Insights regarding SuccessFactors' Business Execution Software strategy

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Documents relating to any Procured Information, including but not limited to any

recorded notes, summaries, compilations, or analyses of any Procured Information.

STIP. ORDER FOR PROVISIONAL RELIEF & COMMENCEMENT OF DISCOVERY

-8-

CASE NO. 10-05471-SBA