EchoSpan Secures $25.7 Million Jury Award in Trade Secret Theft Lawsuit Against Rival Medallia
On November 1, 2023, following an extensive legal battle, a jury in the United States District Court for the Northern District of California found Medallia liable for trade secret misappropriation against EchoSpan, a leading provider of employee 360-degree feedback and performance management solutions. The lawsuit, which spanned over two years, revolved around Medallia’s 2021 directive to a director-level employee to access EchoSpan’s web-based services through a free trial account. Consequently, EchoSpan was awarded $25.7 million, with $11.7 million in compensatory damages, marking a significant verdict in the realm of trade secret litigations.
ATLANTA, Nov. 3, 2023 EchoSpan, a leading provider of employee 360-degree feedback and performance management solutions, has prevailed in a trade secret misappropriation lawsuit against industry giant, Medallia.
After a protracted legal battle, and following a week-long trial, on November 1, 2023, a jury empaneled in the United States District Court for the Northern District of California found Medallia liable for trade secret misappropriation and awarded EchoSpan $11.7 million in compensatory damages. The jury separately concluded that Medallia had engaged in willful misconduct and, on that basis, awarded EchoSpan an additional $14 million in exemplary damages. This resounding victory serves as a clear message that unethical and unscrupulous business practices will not go unpunished.
The lawsuit spanned more than two years, and it centered on Medallia’s 2021 decision to instruct a director-level employee to sign up for a free trial account of EchoSpan’s web-based 360-degree feedback software. At that time, Medallia misrepresented itself to EchoSpan as a legitimate potential licensee of EchoSpan’s software. Evidence produced at trial showed that Medallia sought out access to EchoSpan’s software not for evaluating purchase of that software, however, but for the purpose of gathering intelligence to replicate and develop a competing product.
With access obtained through this misrepresentation, Medallia misappropriated sensitive trade secret information and ultimately developed a competing product that was used to replace EchoSpan with EchoSpan’s then-largest customer, a 300,000 employee global banking institution.
EchoSpan’s CEO, Joe Vance, declared, “This verdict reaffirms our unwavering commitment to protecting our intellectual property. At EchoSpan, we hold innovation, business ethics and integrity in the highest regard. We are elated with the outcome, which underscores the critical importance of safeguarding our innovations.”
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About EchoSpan:
EchoSpan, founded in 2005, is a leading provider of performance management and employee feedback solutions. EchoSpan’s innovative software empowers organizations to enhance employee development, improve engagement, and drive business success. With a commitment to innovation and integrity, EchoSpan remains at the forefront of the industry, setting the standard for excellence in performance management solutions.
