Professional Documents
Culture Documents
v.
Defendants.
COMPLAINT
Ooyala, Inc. (Ooyala) and its subsidiary Ooyala Mxico, S. de R.L. de C.V. (Ooyala
Mexico) (collectively Plaintiffs), by and through their attorneys, allege the following as and
for their Complaint against Defendants Brightcove, Inc. (Brightcove), Daro Prez Real
Defendants Brightcove, Daro Prez Real, and Ral Francisco Garca Domnguez. In the final
three months of Defendant Perezs employment as a senior sales executive at Ooyala, and while
he was being courted to join Ooyalas direct competitor Brightcove, Perez surreptitiously sent to
Brightcove a wealth of Ooyalas confidential and trade secret information, including contact
information for key decision makers of current and prospective clients, specific fees and prices
for clients, customized client specifications, expiration and renewal dates for customer contracts,
Salesforce reports containing detailed prospective client intelligence and market analysis,
communications with clients, and meeting dates with prospective and existing clients. The
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misappropriation of trade secrets was coordinated by Defendant Garcia, a former vice president
of Ooyala and current head of Brightcoves Latin America division. Not only did Garcia thank
Perez for the confidential information forwarded directly to his Brightcove email account, but
Garcia also supervised Perez in soliciting Plaintiff Ooyalas current and prospective clients on
behalf of Brightcove, requested that Perez send certain specific client information, and used an
Attack Plan to set up meetings with Ooyalas clientsall while Defendant Perez was still
employed at Ooyala. Defendants willing, deceitful, and malicious use of Ooyalas confidential
information has already resulted in a loss of current and prospective clients as well as contracts
that had to be renewed at lower prices as a direct result of Brightcoves interference. Defendants
have given no indication that they will stop. Accordingly, the Defendants illegal conduct has
PARTIES
1. Plaintiff Ooyala is, and at all times relevant hereto was, a corporation organized
under the laws of Delaware with its principal place of business in Santa Clara, California.
2. Plaintiff Ooyala Mexico is, and at all times relevant hereto was, a corporation
organized under the laws of Mexico with its principal place of business in Mexico.
the laws of Massachusetts with its principal place of business in Boston, Massachusetts.
Mexico.
Mexico.
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6. This court has subject matter jurisdiction pursuant to 28 U.S.C. 1331 because
Plaintiffs are asserting a claim under the Defend Trade Secrets Act of 2016, 18 U.S.C. 1836.
This court has jurisdiction over Plaintiffs state and common law claims pursuant to 28 U.S.C.
1367 because they form part of the same case or controversy as Plaintiffs federal claim.
substantial part of the events giving rise to the claims alleged herein occurred in this judicial
STATEMENT OF FACTS
video platform where clients can publish, monetize, and analyze online video content.
an online cloud-based video platform where clients can publish, monetize, and analyze online
video content.
10. From October 2012 to April 2016, Raul Garcia was Ooyalas Regional Vice
President for Latin America, a senior sales executive position with responsibility for all of
Ooyalas sales and marketing throughout Latin America . As the head of Ooyalas Latin
America division, Garcia had access to some of Ooyalas most proprietary information,
including high-level sales and marketing strategy, proprietary technology and customized
product solutions, customer pricing strategy, client contact lists, customized client specifications,
Regional Vice President for Latin America, he would have access to confidential information
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including information about Ooyalas clients, and agreed not to use such information even after
from using or disclosing information concerning the financial results, costs of operation,
strategic plans, and other information not readily available to the public.
12. Under Sections 15 and 18 of the Employment Agreement, Garcia was barred from
soliciting or hiring any Ooyala employee until three years after the date of his termination.
13. In April 2016, Garcia resigned from his position as Regional Vice President for
Latin America..
14. In November 2016, Garcia was hired as General Manager for Brightcoves Latin
America division. On information and belief, he leads all aspects of Brightcoves Latin America
operation, which includes building out a new team in Mexico and opening an office in Mexico
City.
15. Defendant Dario Perez was a business development manager for Ooyalas Latin
America division from November 2014 through his resignation on February 23, 2017, working
directly under Defendant Garcia (until his termination) overseeing new business development for
Ooyala throughout Latin America. Like Garcia, in this role Perez had access to some of
Ooyalas most proprietary information, including high-level sales and marketing strategy,
proprietary technology and customized product solutions, customer pricing strategy, client
contact lists, customized client specifications, as well as sales pitch materials for prospective
clients.
16. Like Garcia, Perez executed an employment agreement with Ooyala that
prohibited the use or disclosure of any Ooyala confidential information. Furthermore, in Perezs
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Termination Agreement, Perez affirmed his continuing obligation not to circulate to any other
individual or entity . . . any information related to Ooyala Mxico not available to the general
public. Perez expressly agreed that such information included plans, strategies, prospects and
objectives, customer and supplier lists, strategic plans, business plans, marketing plans, and price
lists.
17. However, Ooyala has since discovered that even before resigning from Ooyala on
February 23, 2017, Perez had already signed his employment contract with Brightcove. Ooyala
has also discovered that in the months preceding his resignation, Perez had been conspiring with
Garcia by systematically sending confidential client data to Brightcove and soliciting Ooyalas
18. For instance, on December 1, 2016, almost immediately after Garcia was hired by
Brightcove to head its Latin America division, Perez sent his resume to Garcias Brightcove
email address. By December 12, 2016, Perez was already sending Garcia communications
between Ooyala and a major prospective client in Argentina. In the forwarded communication,
the prospective clients CIO/CTO asked Ooyala for a proposal, noting that it has been taking
them too long already and that theyre beginning to look for an alternative.
19. On December 15, 2016, Perez sent to his personal email account
December 21, 2016, Perez forwarded communications between Ooyala and the CTO of a vendor
and potential referral partner to his personal email account. A few hours later, Perez resent an
updated resume to Garcia. An hour after that, Perez forwarded to Garcia a communication with
the same CTO regarding an upcoming meeting. Referral partners are significant assets in
Ooyalas industry because they help expand the companys regional footprint. This is
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particularly so in Latin America given the vast territory that must be covered. On January 23,
2017, in an email with the subject heading 17, Perez forwarded to Garcia (at Garcias
Brightcove email address) an email attaching a 2017 services renewal agreement between
Ooyala and one of its Peruvian clients. The agreement is marked Confidential and contains,
inter alia, the renewal date and term, services provided, description of all services, unit prices,
20. In an email chain spanning from January 26 to January 30, 2017, Perez arranged
an interview with Carrie Walecka, a Boston-based sales and marketing recruiter at Brightcove.
Walecka noted that Garcia shared Perezs resume with her, and that she is working with Garcia
21. On February 3rd, Perez forwarded to his personal email account (1) a Brightcove
competitive battlecard created by Ooyala to help Ooyala sales employees position Ooyala
against Brightcove with prospective and existing customers; (2) a conversation between Ooyala
and a prospective client attaching an 81-page presentation regarding the prospective clients
needs in terms of volume, length of agreement, and other customized client specifications; and
(3) a separate communication between Ooyala and a prospective client regarding the prospective
22. On February 6th, Perez sent Garcia a detailed report describing eight of Ooyalas
prospects and current clients throughout Latin America, including detailed contact information
with comments like he is the decision maker as well as screenshots and concrete descriptions
of the client projects underway at Ooyala. Garcia replied Goodie Goddie [sic] and praised
Darios report as the standard, noting it was concrete and to the point.
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WHILE PEREZ STILL WORKS FOR OOYALA, GARCIA AND PEREZ USE
OOYALAS CONFIDENTIAL INFORMATION TO SOLICIT CLIENTS ON
BRIGHTCOVES BEHALF
23. On February 7th, while still employed by Ooyala, in an email with the subject
heading 3 Points, Perez sent for Garcias approval a draft of key points for Perez to use when
soliciting clients on behalf of Brightcove. Perez noted to Garcia that he based the draft on
Brightcoves Manifesto and that he would call instead of sending mail. Garcia replied on the
same day thanking Perez and revising the draft of the key points. Garcia noted that they should
confirm as they could with the prospective clients in Brazil and Argentina before the 11th, and
that if the level of the meetings was high enough, he could invite the CEO who had expressed his
desire to travel in Latin America. Garcia also noted that it would be best to call in order to
receive details and validate the information regarding the future meetings.
communication between Ooyala and a prospective Argentinian client, in which Ooyala and the
communication with a prospective Ooyala client in which they attempt to schedule a meeting.
On the same day, in an email with the subject heading Plan, Perez sent Garcia a detailed plan
including the contacts, numbers, and Action Items regarding the status of planned Brightcove
meetings with five of Ooyalas prospective Brazilian clients and four of Ooyalas prospective
Argentinian clients that were scheduled tentatively from March 6-10. The Action Items
included tasks for both Perez or Garcia, noting which clients had yet to be contacted and which
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26. On February 14th, Perez sent to his personal email account internal Ooyala
communications that (1) include a link to a Salesforce Report likely containing extensive data
regarding opportunities jointly pursued by Ooyala and one of its major strategic partners, and (2)
attaches a sample customer presentation slide deck. Salesforce reports contain detailed
intelligence about Ooyalas prospective clients as well as the analysis that provides the basis for
Ooyalas quarterly market strategies, including what stage the negotiations for each opportunity
in the pipeline are at (ranging from Stage 1 Discovery, Stage 2 Qualification, Stage 3 Evaluation,
Stage 4 Selection, and Stage 5 Negotiation / Contract), the employee responsible for bringing in
the opportunity, the client specifications for product lines, the close date, and detailed pricing
information. The major strategic partner is also a key draw for Ooyalas current and prospective
27. On February 15th, Perez updated Raul on the status of an upcoming meeting with
one of Ooyalas prospective Argentinian clients, noting that he had talked to their IT manager to
schedule the meeting. Perez reported that the IT manager did not know BC and asked to send
him an email with information of who they are and what they do. Garcia replied the same day
with the single word perverso (a slang term for cool). Later that night, Garcia emailed one
of Ooyalas prospective Panama clients, whose contact information Perez had screenshotted and
28. In an email chain spanning from February 15 to February 21, 2017, with the
Perez for joining Brightcove and Perez signs contracts with Brightcove.
29. On February 16th, Perez sent an email updating the Plan with two additional
prospective Ooyala clients, one based in Argentina and the other based in Mexico. In the action
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items, Perez defers to Garcia as to how to approach the prospective Mexican client, but notes that
they are looking to start only with OVP (the equivalent of Backlot) and then evolve into a
hybrid model with ads and SVOD. The same day, Perez forwarded to his personal email
account Ooyalas Salesforce details on both the prospective clients as well as Ooyalas plans to
conduct a regional roadshow through Argentina, Ecuador, Colombia, Brazil, Mexico, Chile, and
Peru.
30. On February 20th, Perez forwarded Garcia an email from a Brazilian Ooyala
client noting that the client was organizing itself to release a test within two weeks, and sent
Garcia a separate email discussing plans to contact five Ooyala prospective clients. On the same
day, Garcia sent a solicitation email (copying Perez) to one of the five prospective Ooyala
clients, and arranged a meeting with the client. Perez also forwarded to his personal email
account (1) an internal Ooyala communication regarding a lead on a prospective Ooyala client
that includes contact information and what the prospective client is looking for, and (2) a
Daniel Conde provides insight into the customized customer preferences of a prospective
Brazilian client.
31. On February 21st, in an email with the subject heading Jamaica Lead, Perez
sent to his personal email account a communication to Ooyala from a prospective Ooyala client
in Jamaica asking for the cost and requirements for certain video specifications. On the same
day, Perez sent Garcia a screenshot of Ooyalas Salesforce report with detailed contact
information for one of Ooyalas clients, including thirty contacts with descriptions of job titles,
emails, and phone numbers. Perez acknowledged the email, writing Cool.
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32. On February 22nd, Perez sent Garcia a request for proposal to Ooyala sent by one
of Ooyalas prospective Colombian clients which Brightcove had not been invited to participate..
Later that day, Perez forwarded to his personal email account a handbook on Ooyalas upcoming
sales kick-off conference, which identified every employee that would be attending the
conference by first and last name and included the dates of arrival and departure.
33. On February 23rd, Perez sent Garcia contact information and a greeting template
for the Chief Engineer of one of Ooyalas prospective Brazilian clients, and directed Garcia on
what to say to him. The contact information was the same information contained in the email
Perez had forwarded to his personal account three days earlier, in which Daniel Conde, Ooyalas
Director of Strategic Accounts, provided contact information for the Chief Engineer as well as
insight into what the client was looking for. Garcia followed up with an email to the Chief
Engineer an hour later, largely following the template Perez had provided.
34. On February 23rd, Perez resigned from Ooyala and signed a termination
agreement. Perez had previously told Patricio Cummins, the current Regional Vice President of
Latin America, that he would be leaving to work for Amazon Web Services. The day before
Perez left, Cummins asked Perez directly whether he would be leaving for Brightcove, and Perez
35. On February 25th, two days after Perezs termination, Perez sent Garcia a list of
five of Ooyalas prospective Argentinian clients and one of Ooyalas prospective Brazilian
clients. Garcia replied the same day by asking him to schedule meetings on March 13th and the
15th.
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36. The theft of the client information stolen by Garcia, Perez, and Brightcove has
caused, and will continue to cause irreparable harm to Ooyala. Identifying, acquiring, and
cultivating new client relationships in this market is often an arduous business development and
negotiation process, requiring substantial investment of Ooyalas capital and resources, including
the time, effort, and expertise of Ooyala professionals. Ooyala markets its internet video
software solutions to large media-based corporations throughout Latin America. The typical
sales cycle in Latin America from first contact with a potential customer to closing the sale is
longer than in the U.S. or other regions, and averages up to nine months. During that time,
Ooyala goes through a long process of meetings with the potential client, learning who at the
client are the right decisionmakers, creating personal relationships with those decisionmakers,
learning how their business works and how Ooyalas solutions can better serve their businesses,
and educating them regarding Ooyalas software solutions. Ooyala makes similar substantial
37. Ooyala goes to great lengths to protect its confidential and trade secret customer
information. Over the years, Ooyala has developed closely-guarded customer lists, customer
contact information, client pitches, slide decks, trade show materials, product development
roadmaps, pricing methods, sales and marketing plans, and corporate strategies. Ooyala
maintains the information in secure databases that contain a wealth of proprietary information.
38. To protect its proprietary customer, prospective customer, and product and
services information, Ooyala requires its employeesincluding Perez and Garciato agree to
keep such information confidential in their employment and termination agreements, maintains
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an up-to-date information security policy that is published on Ooyalas internal wiki, and
commission annual third party independent audits of Ooyalas security and confidentiality
39. Perez and Garcia were also subject to the policies in Ooyalas Employee
Handbook, which require them to avoid revealing confidential information about Ooyala, its
suppliers, [and] its customers unless it is necessary to do so in the performance of their duties.
The Handbook further limits confidential information to a need-to-know basis and notes that
valuable to a major competitor like Brightcove, who offers similar products and services and
competes with Ooyala for the same customers. By stealing the business intelligence Ooyala
gathered on our potential clientsincluding the names and contact information of the key
potential clients, the key decisionmakers at those clients, the client needs, as well as the proposed
deal terms and pricing that Ooyala is pitching to those clientsBrightcove is able to shave
months off the typical sales cycle and undercut Ooyalas prices with its major potential new
41. Ooyala has already lost one account to Brightcove, as well as several contracts
that were required to be renewed at a lower average contract value to counteract Brightcoves
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42. On March 1, 2017, shortly after discovering Perezs conspiracy with Garcia,
Ooyala sent a cease and desist letter to Brightcove notifying the company of possible legal action
and detailing the illegal conduct of Perez and Garciaincluding the fact that Perez had
43. Ooyala believed that Brightcoves internal investigation would be quick and
straightforward given the severity of the trade secret misappropriation, the short timeframe of the
emails, and the fact that the emails were sent directly to and from Garcias Brightcove email
address. Cease and desist letters written in Spanish were sent to Garcia and Perez on March 8th
44. However, thirty days later, Brightcoves counsel called Ooyalas counsel and
claimed that they were handicapped by the fact that they did not know when the communications
occurred as well as the fact that most of the communications were in Spanish.
45. Upon information and belief, Brightcove did not stop the impending meetings
arranged with use of Ooyalas trade secrets. When Ooyala conducted their long-planned trip to
solicit their prospects in Brazil and Argentina, they found that many of the same prospects had
already been approached by Brightcove, often times just days before. One prospective client
expressed surprise that Ooyalas slide deck was so similar to Brightcoves. All of these
meetings, as well as Ooyalas sales decks, were known by Perez and part of the confidential
46. In the month and a half since Brightcoves last contact, Brightcove has not
indicated any sign of further investigation into the illegal activity. Rather, Brightcove released a
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press release on April 19, 2017, titled Brightcove Grows Presence and Investment in Latin
America, in which Brightcove announced key customer wins as well as the addition of local
team members in Latin America to accelerate its growth in the region. The press release quoted
Garcia, who stated that Brightcove has been expanding its presence in Latin America and
47. Furthermore, on May 4, 2017, Brightcoves CEO David Mendels told investors
on Brightcoves quarterly earning call that their Latin America presence is off to a good start,
that they are pursuing a number of significant deals in the region, that theres a lot of good
48. Ooyala developed its prospective contacts, pricing, and customer information at
great expense and time. Defendants continued exploitation of Ooyalas stolen trade secrets has
caused and will continue to cause severe and irreparable harm to Ooyala. With this action,
Ooyala seeks to prevent any further use of Ooyalas confidential and trade secret information,
and obtain compensation for its damages and for Defendants unjust enrichment resulting from
Count I
Violation of the Defend Trade Secrets Act of 2016 (18 U.S.C. 1836)
(Brightcove, Perez, Garcia)
50. Ooyala owns and possesses client information constituting confidential and trade
51. Ooyala took reasonable steps to protect and maintain the secrecy of its trade
secrets, including requiring its employeesincluding Perez and Garciato agree to keep such
date information security policy that is published on Ooyalas internal wiki, commissioning
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annual third party independent audits of Ooyalas security and confidentiality controls, which are
made available to Ooyalas customers, and noting the employees obligations to keep
products and services used, sold, shipped, and/or ordered in foreign commerce. Ooyalas trade
secrets derive independent economic value from not being generally known to, and not being
readily ascertainable through proper means by, another person who could obtain economic value
53. Defendants Perez and Garcia have, through improper meansincluding, but not
limited to, breaching confidentiality covenants each executedused and/or disclosed Ooyalas
confidential and trade secret information in an effort to lure clients away from Ooyala and obtain
54. Defendant Garcia was acting within the scope of his employment and Defendant
Garcias position as General Manager of Brightcoves Latin America division as well as the
cease and desist letter sent to Brightcoves CEO David Mendels, Brightcove knew or should
55. As a direct and proximate result of Defendants conduct, Ooyala has suffered and,
if Defendants conduct is not stopped, will continue to suffer, severe competitive harm,
irreparable injury, and significant damages. Ooyalas business operates in a competitive market
56. Defendants misappropriation of Ooyalas trade secrets was willful and malicious,
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Count II
Massachusetts Trade Secret Misappropriation (M.G.L. c. 93, 42)
(Brightcove, Perez, Garcia)
58. Ooyala owns and possesses client information constituting confidential and trade
59. Ooyala took reasonable steps to protect and maintain the secrecy of its trade
secrets, including requiring its employeesincluding Perez and Garciato agree to keep such
date information security policy that is published on Ooyalas internal wiki, commissioning
annual third party independent audits of Ooyalas security and confidentiality controls, which are
made available to Ooyalas customers, and noting the employees obligations to keep
60. Ooyalas confidential and trade secret information derives independent economic
value from not being generally known to, and not being readily ascertainable through proper
means by, another person who could obtain economic value from the disclosure or use of the
information.
61. Defendants Perez and Garcia have, through improper meansincluding, but not
limited to, breaching confidentiality covenants each executedused and/or disclosed Ooyalas
confidential and trade secret information in an effort to lure clients away from Ooyala and obtain
62. Defendant Garcia was acting within the scope of his employment and Defendant
Garcias position as General Manager of Brightcoves Latin America division as well as the
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cease and desist letter sent to Brightcoves CEO David Mendels, Brightcove knew or should
63. As a direct and proximate result of Defendants conduct, Ooyala has suffered and,
if Defendants conduct is not stopped, will continue to suffer, severe competitive harm,
irreparable injury, and significant damages. Ooyalas business operates in a competitive market
Count III
Unfair or Deceptive Trade Practices (M.G.L. c. 93A, 11)
(Brightcove, Perez, Garcia)
65. At all times relevant to this action, Ooyala has been engaged in trade or
66. Defendants Garcia and Perez have, through improper meansincluding, but not
limited to, breaching confidentiality covenants each executedconspired to use and actually
used Ooyalas confidential and trade secret information in an effort to lure clients away from
Ooyala and obtain their business for Brightcove, in direct violation of their express obligations.
Defendant Garcia was acting within the scope of his employment and Defendant Brightcove
America division as well as the cease and desist letter sent to Brightcoves CEO and received by
Bright Coves General Counsel, Brightcove knew or should have known of the misappropriation.
68. Upon information and belief, Brightcove knowingly and willingly continued to
use Ooyalas confidential information to solicit Ooyalas current and prospective clients even
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69. Further, approximately 50 days after receiving Ooyalas cease and desist letter,
Brightcove published a press release announcing its and Defendant Garcias success in the Latin
America region. Approximately 60 days after receiving Ooyalas cease and desist letter,
Mendels told his investors in an earnings call that there was a good pipeline of prospects in the
70. As a direct and proximate result Defendants willful and knowing use of Ooyalas
trade secrets, Ooyala has suffered and will continue to suffer substantial and irreparable harm
and other damages, including, but not limited to, loss of current and prospective sales, loss of
profits, loss of reputation, and loss of value of trade secrets. Accordingly, Ooyala is entitled to
Count IV
Breach of Contract
(Garcia)
72. Ooyala and Defendant Garcia entered into a valid, enforceable Employment
73. The Employment Agreement expressly prohibited Defendant Garcia from hiring,
attempting to hire, soliciting, or attempting to induce any Ooyala employee from terminating
Agreement when he hired Defendant Perez in or around February 2017 to work at Defendant
Brightcove.
have access to confidential information including information about Ooyalas clients, and agreed
not to use such information even after termination. Additionally, Garcias Employment
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Agreement expressly prohibited him from using or disclosing information concerning the
financial results, costs of operation, strategic plans, and other information not readily available to
the public.
76. Defendant Garcia breached his express obligations in the Employment Agreement
not to disclose or make use of confidential information by using the confidential information of
77. Ooyala performed all obligations to Defendant Garcia under the Employment
Agreement.
78. Defendant Garcia failed to perform his obligations to Ooyala under the
Employment Agreement.
the Employment Agreement to Ooyala, Ooyala has been and will continue to be irreparably
damaged.
Count V
Breach of Contract
(Perez)
81. Ooyala and Defendant Perez entered into a valid, enforceable Employment
2017.
82. Defendant Perez executed an employment agreement with Ooyala that prohibited
the use or disclosure of any Ooyala confidential information. Perez acknowledged and
reaffirmed that his non-disclosure obligation continued past his termination date in his
Termination Agreement.
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83. Defendant Perez breached his express obligations in the Employment Agreement
and Termination Agreement not to disclose or make use of confidential information by using the
84. Ooyala performed all obligations to Defendant Perez under both agreements.
Count VI
Tortious Interference
(Brightcove, Perez, Garcia)
87. Ooyala had advantageous business relationships with clients and prospective
88. Defendants Brightcove, Perez, and Garcia knew that Ooyala had advantageous
90. Defendants Garcia and Perez knowingly and intentionally violated their express
America division as well as the cease and desist letter sent to Brightcoves CEO and received by
Bright Coves General Counsel, Brightcove knew or should have known of the misappropriation.
92. Upon information and belief, Brightcove knowingly and intentionally continued
to use Ooyalas confidential information to solicit Ooyalas current and prospective clients even
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93. As a direct and proximate result Defendants tortious interference, Ooyala has
suffered and will continue to suffer substantial and irreparable harm and other damages,
including, but not limited to, loss of current and prospective sales, loss of profits, loss of
and Perez from using Ooyalas confidential and trade secret information; (2) Defendant
Brightcove from employing Garcia and Perez; and (3) Defendant Brightcove from
communicating with any clients for whom it has unlawfully accessed Ooyalas confidential and
profits Brightcove, Garcia, and Perez have achieved as a result of this misappropriation and
G. Such other and further relief as the Court deems just and appropriate under the
circumstances.
Pursuant to Federal Rule of Civil Procedure 38(b), Ooyala demands a trial by jury on all
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