IT Service Co. Sues Industrial Software Maker For Breach Of Contract, Conversion

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On Tuesday in the Eastern District of Pennsylvania, plaintiffs information technology service companies Ciright Systems, Inc (Ciright); Ciright Digital Media, LLC (CDM); and MyCiright, Inc.; and Ciright Strategic Holdings, LLC (CSH) filed a complaint against defendants SmarTECHS, LLC, a software publisher for industrial applications, and Remy De Vlieghere for breach of contract asserting that the defendants have used converted property and failed to pay the plaintiffs for their services.

According to the complaint, in January 2018, Ciright “entered into licensing agreement (‘the Agreement’) with SmarTECHS to license certain patented software and technology applications defined as ‘Licensed Intellectual Property’ (‘LIP’) in the Agreement.” Additionally, the complaint stated that CSH provided front end application development services to SmarTECHS over the past few years. However, the plaintiffs asserted that they “recently discovered that certain confidential applications and databases have been converted by two (2) former Ciright employees located in India”; these employees were subject to confidentiality agreements and had access to core applications and databases not available to the public. The plaintiffs noted that these core applications were essential for products in the LIP in the Agreement. However, these employees’ converted property is not licensed in the Agreement. Furthermore, the plaintiffs asserted that the defendants …

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