Salesman Did Not Steal Trade Secrets, Judge Rules

An Orange County software salesman did not steal company secrets when he took computerized records of sales contacts with him to a new job, a Los Angeles Superior Court judge has ruled.

Egghead Software had sued the Newport Beach-based salesman, Dan Bader, charging him with theft of its intellectual property.

But a judge has denied Egghead’s claim, ruling that trade secrets law does not apply in Bader’s case. Although Bader had developed a computerized database of his sales contacts while employed by Egghead, the information was easy to obtain and reproduce, Judge Alexander H. Williams III ruled.

Another judge had previously barred Bader from contacting any of the companies that appear on the customer lists. Bader said he will try to recover damages from Egghead to compensate him for lost income and attorneys fees. A hearing on the damages issue has not yet been set.

Egghead has not decided whether to appeal the judge’s decision, said Colleen Regan, a Los Angeles attorney who represented the company.