Pair allegedly copied code and set up competing web sites while working at Marchex
Does Marchex (NASDAQ: MCHX) have a good business plan? A couple of its former employees think so. The pair have agreed to pay $100,000 after allegedly copying Marchex code and creating competing web sites, reports Puget Sound Business Journal. They also agreed to take down the competing web sites. The article states:
Publicly traded Marchex says it first got wind in November that the pair — Eric Thoreson and Casey Manion — had copied key Marchex computer code and were operating an internet directories company called Leland Ventures LLC that was “a mirror image†of Marchex’s business, according to a lawsuit filed July 11 by Marchex.
According to Thoreson’s LinkedIn profile, he was VP, Directory Services at Marchex until December 27. Before that he was GM of Marchex’s GoClick. Manion’s LinkedIn profile shows he was a software engineer for Marchex.
Many domain name companies have explicit rules about what their employees can and cannot do with regards to domain names, and almost all companies have intellectual property agreements.
Frank says
I look at all these domain-related companies, and all of them eventually get heavily discounted by the marketplace when they go public. So MCHX declares their dividend today and gets a little bounce, it still isn’t far off from where it IPO’d. Insiders are selling and the market has priced it’s business model accordingly.
In the long run, all these companies trying to monetize the long tail and local search will end up in the same place as the companies who try/tried to muscle Realtors out of the house buying process.
Maybe Yellow Pages had it right all along.
Patricia Kaehler (DomainBELL) says
It never ceases to amaze me how STUOPID some people can be… and Dishonest…
You don’t take a former employers ANYTHING for personal gain… geez…
Seems like they would have had to sign some sort of non-competed clause upon hiring and now be in a court-actionable status…
No ??
Yes ??
~DomainBELL (Patricia)
Andrew says
I’m sure they signed a non-compete, especially a VP. It would have been one thing had they just decided to create some web sites of their own, but allegedly they copied code from Marchex to develop the sites.
Patricia Kaehler (DomainBELL) says
I’m going to see if I can find a picture of the two… I am curious what such low-life’s look like… (can you tell this sort of thing ANGERS me ??)
~DomainBELL (Patricia)
Andrew says
Patricia, I’m sure the penalty they’re paying and the publicity of the case will be enough punishment.
bob says
To me it seems these ad companies that buy domains just to have advertising are scummy companies anyway. They lock up a crap load of domains just to throw up disgusting cookie cutter holder ad pages.
Hal Meyer says
Failing to honor a non-compete contract is probably a civil breach of contract matter.
Stealing a trade secret is a CRIME in 46 states under 18 U.S.C. § 1832.