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Business Planning Keyed to Reed
Iconix, Inc. v. Tokuda
Citation:
457 F. Supp. 2d 969 (2006)Facts
Iconix, Inc. provides email identity services that combat email fraud. Lance Tokuda served as Vice President of Engineering and Chief Technology Officer, while Jia Shen was Manager of Client Development. Both signed Proprietary Information and Inventions Assignment Agreements upon employment. In fall 2005, Iconix was developing a viral marketing strategy targeting social networking websites, with Tokuda leading the effort to define and develop features attractive to social networking users. One proposed feature was an animated slideshow that would rotate through a user’s pictures. While still employed at Iconix, Tokuda secretly registered the domain rockmyspace.com in October 2005 and formed netPickle to exploit the slideshow feature. Tokuda and Shen developed the rockmyspace website using Iconix’s computers and during company time, launching it in November 2005. By February 2006, the site had over 1.1 million registered users. Tokuda resigned in January 2006, and Shen was terminated when Iconix discovered his involvement. After Iconix sent a cease and desist letter that was refused, Iconix filed suit and sought a preliminary injunction to prevent defendants from using the technology.
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