Softscape Acknowledges Creating, Distributing Inaccurate Presentation; Pays Sum to SuccessFactors; Dismisses All Counterclaims
HRchitect featured SuccessFactors in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems vendors that businesses should consider.
SuccessFactors, the global leader in on-demand performance and talent management solutions, today announced the conclusion of its litigation against Softscape. As part of the settlement, Softscape has issued a press release acknowledging it created a March 2008 PowerPoint presentation entitled “The Naked Truth,” designing it to look as if it came from a disgruntled SuccessFactors customer. Softscape further acknowledges that the presentation contained inaccurate information about SuccessFactors and that Softscape was responsible for distributing the presentation “anonymously” over the Internet. In admitting responsibility, Softscape also agreed to pay SuccessFactors an undisclosed amount in settlement and dismiss with prejudice all counterclaims against SuccessFactors.
The legal dispute originated in early March 2008 when SuccessFactors learned that someone using the name “John Anonymous” had distributed “The Naked Truth” presentation to hundreds of people in the industry. The presentation was emailed to a long list of SuccessFactors’ customers and prospects, as well as industry analysts and the sales groups of SuccessFactors’ direct competitors. It was accompanied by a cover email warning recipients: “If you are thinking about purchasing from SuccessFactors, please read the following document; it provides information about SuccessFactors which they do not want you to know.”
In short order, SuccessFactors exposed Softscape as the author and likely distributor of the presentation. It filed a lawsuit on March 11, 2008 against Softscape in the United States District Court for the Northern District of California (Case No. CV 08 1376 EDL) for False Advertising, Trademark Infringement, Computer Fraud and Abuse, Defamation, Trade Libel, Intentional Interference with Prospective Economic Relations, and Unfair Competition. The Court issued a temporary restraining order against Softscape two days later, and granted a preliminary injunction in favor of SuccessFactors on March 28, 2008, precluding further distribution of the presentation and repetition of its false content. As part of the settlement, Softscape has agreed that the preliminary injunction will become permanent, as part of a stipulated judgment. In addition, to address SuccessFactors’ allegations that Softscape had misappropriated trade secrets in obtaining a SuccessFactors customer list to which Softscape distributed the presentation, Softscape further agreed to be permanently enjoined from “obtaining from any partner or other person, or using, any non-public list of SuccessFactors’ prospects or leads.”
For more information on SuccessFactors, please visit www.successfactors.com
Matt Lafata, HRchitect
Posted by mattlafata 
