IN RE: BREACH OF CONTRACT 

THIRD PARTY STATEMENT

I, MARK BANK, state that I observed XXXX (“the Defendant”) breach their Agreement with XXXX (“the Complainant”) (collectively, “the Parties”) as follows:

  • On or about XXXX, the Parties also entered a Non-Disclosure/ Non-Compete Agreement. This was followed by a Service Agreement entered on or about XXXX, where the Complainant engaged the Defendant to perform a confidential technology development service.
  1. During Defendant’s engagement, Defendant breached the following terms in the said agreements:

SERVICE AGREEMENT

“Intellectual Property Rights

All right, title and interest to all software belongs to Customer (Complainant), unless expressly stated otherwise in a separate document by the parties”.  

“SPFX (Defendant) agrees that it will not use any information obtained as a consequence of the performance of work for any purpose other tat fulfillment of SPFX’s services. SPFX agrees that it will keep all such information confidential and will not disclose such information to any other person, party, or entity”. 

“Neither party will use, adapt, alter, or part with possession of any information of the other which is disclosed otherwise in possession as a result of the Services or obtained in any way in relation to this Agreement and which is of a confidential nature. The parties will not disclose such information to any persons or party where not necessary to perform an obligation under this Agreement”. 

NON-DISCLOSURE/ NON-COMPETE AGREEMENT

Recipient hereby agrees, at all times during and after the term of this Agreement, for a time period of no shorter than 3 years, to hold in strictest confidence and not to disclose to any person or entity without consent of Company, all confidential information”.

“Recipient further agrees that during and after the term of this Agreement he will not use any such confidential information to compete with Company in any way, either directly or indirectly, and he will not otherwise use any such confidential information for his own benefit or to the detriment of Company without written permission of Company. Moreover, the Recipient agrees to take no photographs, screenshots, or the like, of the Company’s property and processes”.

  1. The Defendant breached the aforementioned terms in the following manner:
  1. The Defendant Disclosed/ made public the Complainant’s code, contrary to the Non-Disclosure/ Non-Compete Agreement. The said code is currently available publicly on their website. The Defendant also committed and admitted to committing espionage by searching through the Complainant’s files to find the Complainant’s copy of a contract. 
  1. The Defendant parted with possession of the Complainant’s IP, contrary to the Service Agreement. Notably, the Defendant took the Complainant’s hard drive from the Complainant’s premises and returned it to the local police department after copying the contents. 
  1. The Defendant Copied the Complainant’s IP against the Service Agreement. In a text, the Defendant admitted to making a backup of the Complainant’s IP, which was developed locally on the product, not on their computer. 
  1. The Defendant altered the Complainant’s IP, against the Service Agreement. After taking the Complainant’s hard drive but before returning it to the police department, the Defendant sent the Complainant a copy that was altered and did not work. 
  1. The Defendant used the Complainant’s IP to the Complainant’s detriment, contrary to the NDA/non-compete. Notably, the Defendant attempted to trade the Complainant’s stolen property for a copy of a contract. This amounts to extortion.
  1. Following the breaches, the Complainant, on or about XXXX sent the Defendant a letter demanding a return of the Complainant’s intellectual property.
  2. Consequently, on or about XXXX, the Complainant sent the Defendant a warning letter, offering a settlement and notifying them of the Complainant’s intention to pursue legal action. 
  1. Upon my information and belief, the Defendant has failed to make good their breaches.

 

Upon such basis, I have a reasonable belief that the Defendant breached the said agreements and should be held liable for their conduct. 

Attached, please find evidence of all the facts and allegations herein. 

MARK BANK

XXXX

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