{"id":42523,"date":"2021-08-25T14:41:15","date_gmt":"2021-08-25T14:41:15","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/32594\/Proofpoint-Wins-14-Million-In-IP-Theft-Court-Battle.html"},"modified":"2021-08-25T14:41:15","modified_gmt":"2021-08-25T14:41:15","slug":"proofpoint-wins-14-million-in-ip-theft-court-battle","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/proofpoint-wins-14-million-in-ip-theft-court-battle\/","title":{"rendered":"Proofpoint Wins $14 Million In IP Theft Court Battle"},"content":{"rendered":"<p>Infosec firm Proofpoint has won $14m from a former vice president and his new employer after a jury found they had unlawfully used its trade secrets when he moved to the other company.<\/p>\n<p>Both his new firm, infosec company Vade, and Olivier Lemari\u00e9 misappropriated trade secrets relating to Proofpoint subsidiary Cloudmark&#8217;s Trident spear-phishing detection platform, a federal jury in the US state of California ruled late last week.<\/p>\n<p>Lemari\u00e9, the San Francisco jury found, then went on to share those trade secrets with his new employer, French email security firm Vade Secure.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"condor\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>Of 20 trade secrets Proofpoint said Lemari\u00e9 and Vade had used unlawfully, the jury agreed that 15 had been misappropriated by Vade Secure in a &#8220;wilful and malicious&#8221; way, according to the final verdict form [<a target=\"_blank\" href=\"https:\/\/regmedia.co.uk\/2021\/08\/24\/proofpoint_verdict.pdf\" rel=\"noopener\">PDF<\/a>]. It did not find that Lemari\u00e9&#8217;s misuse of the trade secrets was wilful and malicious, however. The reason this distinction is made is because the judge has discretion to raise the amount the plaintiffs are owed.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xmd=\",fluid,mpu,leaderboard,\" data-lg=\",fluid,mpu,leaderboard,\" data-xlg=\",fluid,billboard,superleaderboard,mpu,leaderboard,\" data-xxlg=\",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<div class=\"adun_eagle_desktop_story_wrapper\">\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"mid\" data-raptor=\"eagle\" data-xxlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<\/p><\/div>\n<p>The jury also found that both Vade and Lemari\u00e9 had infringed at least one of Cloudmark&#8217;s copyrights and that Lemari\u00e9 had breached his employee agreement with the now-Proofpoint subsidiary.<\/p>\n<p>The original complaint, filed in July 2019 [<a target=\"_blank\" href=\"https:\/\/regmedia.co.uk\/2021\/08\/24\/complaint_prrofpoint.pdf\" rel=\"noopener\">PDF<\/a>], sued Lemari\u00e9 and Vade for misappropriation of trade secrets and Lemari\u00e9 for breach of contract. As detailed in the filing, the vice president had joined Proofpoint when it acquired Cloudmark, a firm Lemari\u00e9 had been employed by since 2010.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>According to the complaint:<\/p>\n<p>The engineer left the firm voluntarily in November 2016, joining Vade. According to the complaint, Vade&#8217;s subsequent &#8220;new email security product was a dispositive factor in its ability to secure nearly $80 million USD in funding from its investor, General Catalyst.&#8221;<\/p>\n<p>It also alleged the pair had used its Message (or Mail) Transfer Agent (MTA) tech &#8220;for which [Lemari\u00e9] had led the design, development, and implementation,&#8221; with the complaint noting Vade had &#8220;been developing an MTA product that it intends to launch by the end of this year and, as explained by Lemari\u00e9 himself, is intended to displace Cloudmark&#8217;s MTA, by offering a similarly flexible, cloud-based MTA.&#8221;<\/p>\n<p>In a <a target=\"_blank\" href=\"https:\/\/www.proofpoint.com\/us\/blog\/corporate-news\/update-proofpoints-trade-secret-misappropriation-and-copyright-infringement\" rel=\"noopener\">statement<\/a> made in April, just before the case went to trial, Proofpoint claimed Lemari\u00e9 &#8220;took and used Cloudmark&#8217;s confidential and proprietary information and source code when he joined Vade Secure as Chief Technology Officer in 2017.&#8221;<\/p>\n<p>French IT news website <i>Le Monde Informatique<\/i> <a target=\"_blank\" href=\"https:\/\/www.lemondeinformatique.fr\/actualites\/lire-vade-secure-condamne-a-verser-14-m$-a-proofpoint-83922.html\" rel=\"noopener\">reported<\/a> that Vade had spent &#8220;\u20ac13m in 2019&#8221; alone fighting the case, which the site characterised as &#8220;half of [Vade&#8217;s] turnover in legal fees.&#8221;<\/p>\n<p>Proofpoint <a target=\"_blank\" href=\"https:\/\/www.proofpoint.com\/us\/newsroom\/press-releases\/proofpoint-enters-definitive-agreement-acquire-cloudmark-110-million-cash\" rel=\"noopener\">bought<\/a> Cloudmark, a <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2015\/05\/08\/ftc_slaps_restraining_order_on_alleged_dietpill_spam_scammers\/\" rel=\"noopener\">message-filtering firm used by the FTC<\/a>, among others, in 2017 for $110m, praising both its email security tech and its threat intelligence products. The smaller company was founded in 2001, <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2002\/06\/20\/cloudmark_takes_napster_model\/\" rel=\"noopener\">came out of stealth in 2002<\/a> with a &#8220;Napster-style&#8221; technology for fighting spam, briefly crashed Microsoft Outlook in 2007 after <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2007\/08\/10\/cloudmark_dodgy_update\/\" rel=\"noopener\">a borked update to its anti-spam plugin<\/a>, and was last seen on <i>El Reg<\/i> after analysing <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2015\/09\/03\/ashley_madison_blackmail_lucrative_scam\/\" rel=\"noopener\">blackmail claims<\/a> made in the wake of the Ashley Madison breach in 2015.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" id=\"story_eagle_xsm_sm_md_xmd_lg_xlg\" data-pos=\"mid\" data-raptor=\"eagle\" data-xsm=\",mpu,dmpu,\" data-sm=\",mpu,dmpu,\" data-md=\",mpu,dmpu,\" data-xmd=\",mpu,dmpu,\" data-lg=\",mpu,dmpu,\" data-xlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33YSb131EcobBzCD0DP8uAsgAAAJI&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>A jubilant Gary Steele, Proofpoint&#8217;s chief exec, told <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.law360.com\/employment\/articles\/1415180\/proofpoint-entitled-to-14m-in-trade-secrets-case-jury-says\">legal newswire Law360<\/a>: &#8220;While we welcome fair competition and collaboration within the cybersecurity community, the misappropriation, copying and theft of our intellectual property required us to vigorously enforce our rights.&#8221;<\/p>\n<p>According to the verdict, Proofpoint will get $13.4m for unjust enrichment and $480k for breach of contract but $0 for actual loss.<\/p>\n<p>Vade Secure told <i>The Reg<\/i>: &#8220;While we were hopeful we would be successful on all claims, we are pleased that the jury saw that Proofpoint and Cloudmark&#8217;s claims were an overreach as evidenced by their decision on damages.<\/p>\n<p>&#8220;As a company whose core values are integrity and innovation, we don&#8217;t believe this outcome accurately reflects who we are. We will be evaluating our next steps in the coming days in light of this verdict.&#8221; \u00ae<\/p>\n<p> READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/32594\/Proofpoint-Wins-14-Million-In-IP-Theft-Court-Battle.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[60],"tags":[9598],"class_list":["post-42523","post","type-post","status-publish","format-standard","hentry","category-packet-storm","tag-headlineemaildata-lossfraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Proofpoint Wins $14 Million In IP Theft Court Battle 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" 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