9 Mass. App. Ct. 254 | Mass. App. Ct. | 1980
The plaintiff, Dynamics Research Corporation (DRC), brought this action against the defendant Robert Bicknell, formerly employed by the plaintiff, and the defendant The Analytic Sciences Corporation (Analytic), by whom Bicknell was hired after he resigned from the plaintiff. The plaintiff sought to enjoin the defendants from “using for their own benefit the proprietary system of plaintiff known as TIRAS [an acronym for ‘ technical information retrieval and analysis system’] and from interfering with business relationships between plaintiff and customers of plaintiff with respect to projects in which defendant Bicknell took part during his employment by plaintiff.” The plaintiff also sought “such damages as the Court determines plaintiff has sustained by virtue of defendants’ unfair competition.” (The complaint includes a general prayer “[f]or such other and further relief as may be appropriate.”)
Preliminary relief was denied, and the case was referred to a master on June 30, 1972. There were seventeen days of evi-dentiary hearings ending on January 29, 1973 (a stenographer had been appointed pursuant to G. L. c. 221, § 91C), and the master heard oral argument and received briefs on April 11, 1973. On November 21, 1973, the master at his own request heard reargument of the case and on August 8, 1974,
Ry order entered May 12, 1975, a judge denied the plaintiff’s motion and recommitted the report to the master. His accompanying order set out in detail, substantially as requested by the defendants, the matters on which the master was to make specific findings and summaries of the evidence. About a year later, on April 27, 1976, the master filed “ Additional Subsidiary Findings” which purported to contain summaries of the evidence as requested by the judge’s order. The master’s findings with reference to the elements of the alleged trade secret will be discussed at a later point in this opinion; he made no findings as to damages, stating that “the finding made by the Master in his Report should be vacated in favor of a new hearing.”
The judge filed a “ Memorandum and Order” in which he held that, except as to damages, the original and additional
Such a hearing was held before another judge on February 7, 1977. As set out in his memorandum accompanying the judgment, the plaintiff sought an injunction in the language set out in the margin.
1. Before proceeding to the merits we must consider whether the designated portions of the transcript of the evidence before the master reproduced in the record appendix and the exhibits are properly before us. An order that the master file the evidence for perusal by the court is rarely made; such a practice ordinarily defeats the main objective of referring a case to a master. Peters v. Wallach, 366 Mass. 622, 626 (1975), and cases cited. Jet Spray Cooler, Inc. v. Crampton, 377 Mass. 159, 161 n.4 (1979). See the full discussion in Michelson v. Aronson, 4 Mass. App. Ct. 182, 184-187 (1976), and Covich v. Chambers, 8 Mass. App. Ct. 740, 741-743 (1979). Nevertheless, even when the original order of reference to a master provides that the master not report the evidence, the judge may subsequently order that the evidence be reported “if satisfied that in the interests of justice the evidence should be brought before him.” Shelburne Shirt Go. v. Singer, 322 Mass. 262, 265 (1948), and cases cited. Spiegel v. Beacon Participations, Inc., 297 Mass. 398, 406-407 (1937). Jet Spray Cooler, Inc. v. Crampton, 377 Mass, at 162 n.4 (last par.). USM Corp. v. Marson Fastener Corp., 379 Mass. 90, 105 n.17 (last par.) (1979). Greaney, Trials Before Masters A Procedural and Substantive Primer for the Practicing Lawyer, 63 Mass. L. Rev. 195, 204 (1978). See Goldberg v. Goldberg, 7 Mass. App. Ct. 831, 835 n.3 (1979). Cf. Shaw v. United Cape Cod Cranberry Co., 332 Mass. 675, 679-680 (1955); Michelson v. Aronson, 4 Mass. App. Ct. at 186; Covich v. Chambers, 8 Mass. App. Ct. at 742 — cases in which the existence of discretion was confirmed though the discretion was not exercised. The present case is one of the rare cases in which it
The affidavits of both the defendants’ and the plaintiff’s counsel, which the judge found to be true (Minot v. Minot, 319 Mass, at 261), at minimum raise a serious question whether the master’s summaries of the evidence on the trade secret issues were so meager as to require recommittal. Boston Edison Co., petitioner, 341 Mass. 86, 92 (1960). H. Piken & Co. v. Planet Constr. Corp., 3 Mass. App. Ct. 246, 249 (1975), citing Boston Consol. Gas Co. v. Department of Pub. Util., 327 Mass. 103, 106 (1951). The judge was also faced with the question of recommittal for further hearings on the matter of damages. In the present case a recommittal to the master for these purposes was, as the judge found, impracticable since the master had become a full-time District Court judge (see note 3, supra). In addition, as alluded to by the defendants in their motion to strike portions of the master’s report, the proceedings before the master had already consumed approximately four years. In these circumstances the judge apparently accepted the defendants’ suggestion in their motion to strike that he himself review the evidence before the master, and he ordered that the transcript of the evidence before the master and the exhibits be filed with the court. In this posture, he was enabled to treat as waived the defendants’ alternative motion to recommit for the purpose of appending proper summaries of the evidence, which he otherwise would have been required to allow or deny.
Accordingly, we view the master’s report in the light of the evidence before us and decide the case according to our own judgment, giving due weight to the findings of the master, which are not to be reversed unless they are clearly erroneous. Goodell v. Goodell, 173 Mass. 140, 146-147 (1899). Shelburne Shirt Co. v. Singer, 322 Mass. 262, 265-266 (1948). Kuklinska v. Planning Bd. of Wakefield, 357 Mass. 123, 127 (1970). Jones v. Wayland, 374 Mass, 249, 254-255 (1978). See Spiegel v. Beacon Participations, Inc., 297 Mass, at 407.
Initially, in undertaking to service a customer’s project the plaintiff, through its program manager, establishes with the customer “the basic program requirements.”
Further, at irregular intervals and at the request of the customer, a manufacturer, or other involved person, or on its own initiative, the plaintiff writes a special report making recommendations as to the solution of problems which have developed with respect to an instrument. For example, if a particular component part has a high rate of failure, the plaintiff may investigate the reason why and recommend a change in its design. Or, after the design of a particular component has been changed, the plaintiff might write a special report analyzing whether the instruments
The data which may be needed as a basis for the reports or otherwise to inform the customer are collected from the manufacturers of the various component parts of the instruments, from those who assemble the system, from the users or operators of the instruments, and from those to whom the instruments are sent for repair. So called data technicians and engineering assistants employed by the plaintiff, who are generally high school graduates, check the data for consistency, completeness, and accuracy; they then code each piece of information, using a standard set of codes which is developed for each TIRAS project. The data are compiled and stored, usually on magnetic tapes or discs, for use in the plaintiff’s computer. Computer programs are developed to instruct the computer to perform various operations on such data compilations (the files which compose the data base) so as to generate the data for the reports and for the solution of special problems.
Each project is managed by an engineer who is knowledgeable about the instruments being followed by that project. One to four other engineers may also work on the project. These engineers play key roles. The project manager, together with the customer, establishes the “basic program requirements” (see n.7), and he or such other engineers as are assigned to the project in consultation with the customer, the manufacturers and the vendors determine what data are available and how reliable they are, predict the data likely to be needed in analyzing problems which may arise with the instrument being followed during its development and operation, and on this basis decide what data are to be collected. They instruct the data technicians and engineering assistants how to determine the completeness and correctness of data sent to the plaintiff by the data
The defendant Bicknell came to know the plaintiff and its work after 1963, the year he joined the technical staff of the G. Starr Draper (Instrumentation) Laboratory of MIT as an inertial guidance engineer. Bicknell had graduated from the Naval Academy in 1953, after which he had joined the Air Force. In 1960, while in the Air Force, he received graduate degrees from the University of Michigan in Instrumentation Engineering and in Aeronautical and Astronautical Engineering. Among his Air Force assignments was a position in the guidance and control directorate of the ballistic systems division of the Air Force Systems Command, in which he had responsibility for over-all management and administration of the Titan II inertial guidance program. His resume, included by the plaintiff in a presentation to the Air Force while he was an employee, states, “He was awarded the Air Force Commendation Medal for exploitation of novel techniques for guidance system improvement . . . .” At the Instrumentation Laboratory, he continued to work with the development of advanced inertial guidance systems for advanced missile applications
The immediate circumstances of Bicknell’s change in jobs are set out by the master: “In November of 1971, Mr. Bick-nell received a telephone call from [Analytic] asking for references concerning ... a former DRC employee, [Analytic] was interviewing. Mr. Bicknell indicated generally his unhappiness at DRC. Discussions with [Analytic] followed. . . . DRC had considered discharging Mr. Bicknell in March of 1970, and when Bicknell submitted his resignation on December 27, 1971, no effort was made to get him to reconsider. He told Mr. Anderegg [the president of DRC] that he was going to work for [Analytic] and compete. Mr. Anderegg indicated that he hoped that wouldn’t happen. There was no debriefing. There were no discussions between Bicknell and [Analytic] of specific DRC projects prior to the employment by [Analytic] of Bicknell. Mr. Bicknell made up his mind to accept [Analytic’s] offer after his letter of resignation was so readily accepted notwithstanding the fact that he had already made a partial decision to go to [Analytic].” The master further found that at the time Bicknell left he had various documents in his desk and at home and that he took with him from DRC at least sixty
At Analytic, Bicknell familiarized himself with its capabilities and its employees as the first step in developing a management information service in competition with the plaintiff. He began work on a proposal to perform such a service with respect to certain instruments in the Short Range Attack Missile (SRAM), including its inertial guidance system.
On February 18, 1972, the plaintiff submitted an unsolicited proposal
3. Trade secret protection. We start with the “well settled [rule] that an employee upon terminating his employment may carry away and use the general skill or knowledge acquired during the course of the employment.” Junker v. Plummer, 320 Mass. 76, 79 (1946). Jet Spray Cooler, Inc. v. Crampton, 361 Mass. 835, 839 (1972). Eastern Marble Prods. Corp. v. Roman Marble, Inc., 372 Mass. 835, 842 (1977). See Richmond Bros. v. Westinghouse Broadcasting Co., 357 Mass. 106, 111 (1970). The “right [of an employee] to use [his] general knowledge, experience, memory and skill” (J. T. Healy & Son v. James A. Murphy & Son, 357 Mass. 728, 740 [1970]), promotes the public interest in labor mobility and the employee’s freedom to practice his profession and in mitigating monopoly. The law thus maximizes the benefit of the national store of skill and knowledge. See Club Aluminum Co. v. Young, 263 Mass. 223, 225-227 (1928); National Hearing Aid Centers, Inc. v. Avers, 2 Mass. App. Ct. 285, 292-293 (1974). See generally Comment, Industrial Secrets and the Skilled Employee, 38 N.Y.U.L. Rev. 324 (1963); Turner, Trade Secrets 160-172 (1962).
This starting point is particularly appropriate in this case for, as set out above (see note 8, supra, and related text), Bicknell, an inertial guidance engineer, came to his job at DRC with knowledge and skill in the plaintiff’s area of operation; and, as the master found, “was hired by DRC in part because he understood its management system concept.” This case is thus different from Junker v. Plummer, 320 Mass, at 78, in which the court recognized the principle quoted above but emphasized (among the factors which im
In these circumstances, the employer has a heavy burden of isolating the secret for which he claims protection.and of demonstrating that the employee is left free — questions of good faith and reasonable contract restrictions apart — to use the knowledge and skill he brought to the job as well as “what he has learned during the employment.” See 2 Call-mann, Unfair Competition, Trademarks and Monopolies (Callmann) § 54.2, at 415 (3d ed. 1968). “The employer’s interest in the secret must be crystal clear to justify the restraint of the employee, for whom it may have become part of his general knowledge and experience.” 2 Callman § 53.2(a), at 384. See Padover v. Axelson, 268 Mass. 148, 151-152 (1929); May v. Angoff, 272 Mass. 317, 320 (1930); National Hearing Aid Centers, Inc. v. Avers, 2 Mass. App.
Thus the judge to whom the original master’s report had been presented, recommitted it, ordering the master to “identify[ ] the secret features of the ‘structure and function of the TIRAS system,’ which distinguish it from other technical management systems.” But the master’s “Additional Subsidiary Findings” were unresponsive; he did no more than enumerate three characteristics of the TIRAS system which he regarded as “unique.” Since the plaintiff asks that the defendants be barred from providing a management information service for inertial guidance systems with these three characteristics (see note 4, supra), we discuss them in detail. We hold that the plaintiff did not satisfy his burden of proving that (a) two of these were secret and (b) that the third was appropriated.
The master’s additional findings state, “A major and basic difference between TIRAS and other management information systems where data may be stored, retrieved and/ or reported, is that TIRAS is designed to feed back into the project activity and influence it and thus acts as a forcing function,” which is performed by the project manager and, as the master found in his original report, “consists of a complete overview of a project . . . for which DRC is responsible.” The plaintiff’s request for injunctive relief tracks the master’s phraseology, which in turn derives from the testimony of Albert Rand, manager of the Systems Division of DRC. Referring to the “forcing function” he testified: “Our specials are not just reporting the status of anything. It really does an engineering analysis of a problem and gives him options on what he can do in order to get out of it.” He went on: “[T]he whole idea of TIRAS as a forcing function is to be able to try to predict and anticipate problems that are coming downstream.”
Ironically, the most succinct statement of this notion is found in a paper presented in August of 1971 by one Dr. Brann, a TIRAS engineer, to the Fourth Logistics Conference and reprinted in its proceedings (the Brann paper).
The plaintiff’s request for injunctive relief also tracks the master’s finding that a “unique” feature of the plaintiff’s system is “the technique of pulling out and collecting a detailed life history of the object, such as a gyroscope or accelerometer.” When we examine the Ness testimony from which this phraseology derives, Stauffer’s and Rand’s testimony regarding the collection of data, and the master’s findings in this connection in his original report, we find simply the “notion”
The third “unique” feature of TIRAS found by the master which the plaintiff seeks to protect by injunction is the “use of threaded lists or files.” But the concept of a threaded list “is a very common concept” in computer technology,
While customers may be attracted to the plaintiff’s system by the role of the TIRAS engineers and the detailed nature of the data collected, it was clearly not the secrecy of these publicized features applying obvious notions which gave the plaintiff its competitive advantage.
Essentially, the plaintiff’s complaint is that Bicknell has taken his talent to Analytic and in combination with Analytic’s resources and other talents is creating a capability which threatens DRC’s unique position.
Bicknell may well have enhanced his knowledge and skill through exposure, and his own contribution, to the development of TIRAS — just how much is not made clear by the master or the plaintiff whose burden it was to specify (see Servo Corp. v. General Elec. Co., 393 F.2d 551, 556 [4th Cir. 1968]) — for he came to DRC with knowledge and experience in the field and familiarity with DRC’s operation.
Not only “the nature of the information” but also “the conduct of the parties” (Jet Spray Cooler, Inc. v. Cramp-ton, 361 Mass, at 840) leads to the conclusion that the plaintiff is not entitled to restrain Bicknell’s use of his knowledge gained while working on TIRAS. As we have seen both the role of the engineers on a TIRAS project and the detailed nature of the data collected were publicized in the Brann
Such an agreement cannot make secret that which is not secret, and it remains for the court to determine whether an alleged trade secret is in fact such. National Rejectors, Inc.
Similarly misplaced is the plaintiff’s reliance on the master’s further finding that Ricknell caused to be placed on the proposals submitted by DRC for TIRAS work proprietary legends,
4. Marketing information; damages. The plaintiff’s contention that it is entitled to damages points to the master’s finding that Bicknell took, in addition to remembered information,
From the plaintiff’s affidavit in aid of its motion for a new hearing on damages, it appears that the only figures it presented at the hearing were its marketing budget during 1971, indirect expenses for 1966-1971, its billing rate, and
5. Conclusion. Accordingly, we do not disturb the judgment dismissing the action although our decision rests upon somewhat different grounds from those of the Superior Court. E. Whitehead, Inc. v. Gallo, 357 Mass. 215, 219 (1970).
Judgment affirmed.
By that time the new rules of civil procedure were in effect and governed proceedings thereafter. Mass.R.Civ.P. 1A, par. 5, 365 Mass. 732 (1974). Jones v. Wayland, 374 Mass. 249, 255 n.5 (1978).
He then stated: “[A] further hearing on the question of damages was held . . . and re-argument was heard especially on the question of damages. After weighing the re-argument and the evidence from the original proceeding, the Master is convinced that a further hearing should be held before a new Master on the question of damages or a finding of one dollar ($1.00) be made in accordance with a further order of the Court. The Master is satisfied that the finding of all of the damages asked by the Plaintiff cannot be supported by the evidence offered . . . .”
He observed that a further hearing before the same master was not practical “inasmuch as he has become a ‘full time’ district court judge.”
“That the defendants, The Analytic Sciences Corporation and Robert S. Ricknell, are for a period of two years from the date hereof, restrained and enjoined from using or disclosing to others and from selling or offering for sale plaintiff’s TIRAS system or any similar management information system applied to high-value military equipment having as characteristics (a) the technique of pulling out and collecting a detailed life history of the object, such as a gyroscope or accelerometer, (b) the use of threaded lists or files to build a system in real time consisting of an inertial measurement unit or a piece of machinery, and/or (c) a characteristic in contrast to other management information systems where data may be stored, retrieved and/or reported, by which TIRAS is designed to feed back into the project activity and influence it and thus act as a forcing function.'”
The defendants also filed a “Notice of Cross Appeal From Memorandum and Order Entered February 1, 1977.” An appeal from the final judgment in their favor is unnecessary to their attack on the master's report and “Additional Subsidiary Findings,” such an attack being a way of supporting the judgment, though on grounds somewhat different from those adduced by the judge.
A guidance system in this context is that portion of a missile or aircraft which controls the direction of its motion, and an “inertial” guidance system is one that maintains such control without human intervention by means of inertial instruments; very high precision instruments, gyroscopes and accelerometers are used for this purpose.
This was described by one Stauffer, the manager of the TIRAS department for the plaintiff, as follows: “This activity involves a liaison between the Program Manager and representatives of the customer. At that time he establishes officially what the schedule for routine reports will be. He will establish how deeply into the instrumentation we are going to go. He will establish the content of the report or the regular reports. He will identify any analysis work which is to be done on a scheduled basis different from the routine reports. And he will establish where such is necessary what additional information may be required from the vendors
“Analysis work” as here used by the witness appears to refer (as put by the master) to “the mathematical treatment of subjects through differential and integral and other types of equations.” It does not involve data collection, but computers may be used in the solution of the equations.
That same resume states that at the Instrumentation Laboratory “[h]is responsibilities included management of activities supporting fabrication of the inertial measurement units such as maintaining control of all design documentation, establishing and monitoring interface controls for the inertial instruments and test support equipment, and establishing the criteria and monitoring performance for the reliability program. He supervised the design of specifications for all test computer programs.”
The customers for 1972 were listed in three categories: customers with whom the plaintiff already had contracts, potential customers from whom the plaintiff believed it had a high probability of obtaining contracts, and potential customers from whom the plaintiff believed it had a low probability of obtaining contracts. The forecast also listed the gross payments which the plaintiff expected to receive from each customer during 1972 if contracts were obtained.
Section 4.101(c) of the Armed Service Procurement Regulation (32 C.F.R. § 4.101[c][1972]) defines “unsolicited proposal” as “a research or development proposal which is made to the Government by a prospective contractor without prior formal or informal solicitation from a purchasing activity.”
Section 2304(a) (10) provides: “[T]he head of an agency . . . may negotiate ... a purchase or contract, if . . . (10) the purchase or contract is for property or services for which it is impracticable to obtain competition.” See ASPR, 32 C.F.R. § 3.210-2(a). See also ASPR, 32 C.F.R. § 1.201-11, and IB McBride and Touhey, Government Contracts § 9.120 (1978).
Stauffer testified that: “It is the manual intervention of trained engineers that makes the whole system work.” The following, taken from Stauffer’s deposition, was introduced in evidence: “[Qjuestion . . . ‘Now, is this engineering person when we are dealing with TIRAS an important element of the TIRAS System?’ Answer: T consider him the most important element.’ Question: ‘For what reason?’ Answer: T consider that without the judgment of a mature engineer that the statistics, the numbers that can be created by a pure data file are essentially nothing more than purely numbers.’”
Ness is an Associate Professor at Massachusetts Institute of Technology; he teaches largely in the area of management information systems and management information technology. He referred to “the problems that managers have in this kind of situation” as those “we would conventionally call managerial control problems”. — “words [which] have really become part of the literature of management.”
Ness replied in the affirmative when asked, “All right. So, what my question was leading to and what I understand you to say is this; if you are looking for information about jelly beans, you have seen a management information system where the guy running the show was an expert on jelly beans?”
The paper was distributed to those in attendance — about 130 persons both from the military and the aerospace industry. It was a public conference, and copies of the publication are apparendy still available.
Ness uses this word rather than the word “technique.”
The paper detailed the types of data the plaintiff gathers in a TIRAS project, mentioning all the major types of data collected by the plaintiff, including data as to the location, condition, operating time, and design of each instrument, reasons for the instrument’s failure, and test results.
This tracks Ness’ testimony that “the kind of units that it deals with are very expensive ones and ones that it is worth maintaining in some sense a history on in much greater detail than would be the case with conventional manufacturers.”
It is so characterized by Brewster, the defendants’ expert witness, whose testimony the master’s finding tracks in this respect. Ness, when asked whether he had “ever heard of the concept of threaded lists” answered, “Sure.” It is discussed in the literature. See Lefkovitz, File Structures for On-Line Systems (1969), passim.
Ness testified that the linking of components could be accomplished “in many different ways.”
See DiAngeles v. Scauzillo, 287 Mass. 291, 297 (1934); J.T. Healy & Son v. James A. Murphy & Son, 357 Mass, at 736; RTE Corp. v. Coatings, Inc., 84 Wis. 2d 105, 120 (1978).
An employee of General Electric testified as follows: “Fleximis stands for Flexible Management Information System and it consists of a service of programs which are designed to maintain an integrated data base. There are approximately seven or eight programs. Fleximis includes the ability to make inquiries against massive amounts of data and retrieve the appropriate information that’s sought.”
See Richter v. Westab, Inc., 529 F.2d 896, 900 (6th Cir. 1976): “Trade secret law is designed to protect a continuing competitive advantage, |yhich a company enjoys due to confidential information it possesses, from destruction due to disclosure by a departed former employee.” See Restatement of Torts § 757 Comment b (1939): “A trade secret may consist of any . . . compilation of information which is used in one’s business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it. . . . The subject matter of a trade secret must be secret.” See 12 Business Organizations, Milgrim, Trade Secrets § 2.03 (1978) (Milgrim): “The value, then, of a trade secret rests in maintenance of secrecy. Not every commercial secret, however, qualifies as a trade secret. It is well known that in business most matters are considered as confidential; however, only secrets affording a demonstrable competitive advantage may be properly considered as trade secrets.”
The master found that “ [t]he resources that would be involved, in order to design a system such as TIRAS, would include computer resources, people and availability of funds. Resources would also obviously include intellectual resources.”
He further testified: “You subdivide it into component parts and it is obvious, but very few people have been able to put together this total picture.”
The master found that in January, 1970, Analytic “considered the] possibility of expanding its business to include management information service.”
The master found that “Bicknell took with him a complete understanding and knowledge of the working principles of the DRC system known as TIRAS.”
Compare the findings by the master: “TIRAS consists of a large number of people, interrelationships (‘interfaces’), and computer processes which yield the DRC program. A large scale TIRAS program would have functions and people with many interface relationships that had never been reduced to writing or diagram form.”
Stauffer testified that the Braun paper was “about as complete a description [of TIRAS] as does exist.”
See Wheelabrator Corp. v. Fogle, 317 F. Supp. at 638-639; Republic Systems ir Programming, Inc. v. Computer Assistance, Inc., 322 F. Supp. 619, 628 (D. Conn. 1970), affirmed, 440 F.2d 996 (2d Cir. 1971); Motorola, Inc. v. Fairchild Camera & Instrument Corp., 366 F. Supp. 1173, 1186-1187 (D. Ariz. 1973); Condec Corp. v. United States, 197 Ct. Cl. 368, 371, 375-377, 403-404 (1972); Van Prods. Co. v. General Welding & Fabricating Co., 419 Pa. 248, 265 (1965); 2 Callmann § 53.3, at 391-393; 12 Milgrim § 2.05; 1 Nims, Unfair Competition § 146 (1947). See also Commonwealth v. Robinson, 7 Mass. App. Ct. 470, 474 n.2 (1979); Shanahan v. Macco Constr. Co., 224 Cal. App. 2d 327, 330, 333-339 (1964).
The contract provided in pertinent part: “I will not during my employment by DRC or thereafter at any time disclose to others or use for my own benefit any trade secrets or confidential information pertaining to any of the business of DRC or any of its clients, customers, consultants, licensees, or affiliates, acquired by me during the period of my employment, except to such an extent as may be necessary in the ordinary course of performing my particular duties of an employee of DRC.”
We do not accept the analysis in Structural Dynamics Research Corp. v. Engineering Mechanics Research Corp., 401 F. Supp. 1102, 1112, 1118-1119 (E.D. Mich. 1975), cited by the plaintiff, in which the court held that two defendants “do not owe [the plaintiff] a duty not to use or disclose its trade secrets by reason of a relationship of confidence in employment” but were nevertheless bound by a general nondisclosure agreement. It is out of harmony with our cases and could turn a nondisclosure agreement into a noncompetition agreement open ended and unenforceable as against public policy.
These legends read: “Proprietary Information.” “Since much of the information presented herein is proprietary to Dynamics Research Corporation, we respectfully request that appropriate precautions be taken to
It appears that the legends were placed on proposals in which DRC sought to obtain an original contract by negotiation rather than competitive bidding. See note 11, supra, and accompanying text. They were not placed on proposals for follow-up contracts.
We note that the plaintiff has not shown that any of the contracts it obtained with the government contained a clause limiting the government’s right to use or disclose secrets of the plaintiff, as provided since 1965 in ASPR, 32 C.F.R. §§ 9.202-2(c) and 9.203.
We also note that Bicknell initiated the restrictive legends at least seven years after the plaintiff began its TIRAS service, during which time it was not concerned to indicate that its service was in some sense “proprietary.” See Condec Corp. v. United States, 197 Ct. Cl. at 371-372; Canadian Commercial Corp. v. United States, 202 Ct. Cl. 65, 77, 79 (1973); Koehring Co. v. E..D. Etnyre & Co., 254 F. Supp. at 361; Motorola, Inc. v. Fairchild Camera & Instrument Corp., 366 F. Supp. at 1186; 12 Milgrim § 2.05(2).
The plaintiff emphasizes the evidence that Bicknell told Analytic the plaintiff’s overhead figure.
One of the documents listed is a DRC news release relating to the award of a contract in the Minuteman program.
The only figures which on their face may be directly relevant were the SRAM expenses; but the master found specifically in his original report that the plaintiff was not entitled to damages on account of the SRAM activity, a finding which was not contested. The plaintiff eventm ally obtained a contract to perform its service for SRAM — indeed the only contract, from what appears, for which the plaintiff and Analytic competed.