Cases from United States District Court for the Southern District of New York

United States District Court for the Southern District of New York
Former Susquehanna International Group Engineer Charged with Theft of Trading Code

Defendant Dmitry Sazonov ("Defendant" or "Sazonov"), age 44, was arrested on April 13, 2017, whereupon a criminal complaint was filed against him in United States District Court for the Southern District of New York by a Special Agent of the Federal Bureau of Investigation ("FBI") and federal prosecutors. The government alleges that Sazonov "attempted to steal valuable proprietary computer code that took his employer years to develop," according to Acting U.S. Attorney Joon H. Kim. Sazonoz was employed for thirteen years by Susquehanna International Group ("Susquehanna"), a financial services firm headquartered in Pennsylvania with offices in Manhattan. Susquehanna's principal line of business is securities trading and other financial products. Sazonov allegedly attempted to steal "proprietary computer code for a trading platform" that Susquehanna developed. The Feds report that "the trading platform Sazonov worked on trades $300 million in options daily." The FBI's investigation revealed that "Sazonov allegedly took elaborate steps to conceal his attempted theft, including camouflaging pieces of source code within harmless-looking draft emails on his work computer." The criminal complaint alleges that Sazonov efforts to steal the code began in February 2017 when he learned his supervisor had resigned.

The Defendant is charged with one count of attempted theft of trade secrets, which carries a maximum sentence of ten years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The charges contained in the complaint are merely accusations, and the Defendant is presumed innocent unless and until proven guilty.

Complaint: http://src.bna.com/nVJ

United States District Court for the Southern District of New York
After battling a rival video-game developer for over two years in Korea, NCSoft now brings the fight to U.S. courts

Having launched a criminal investigation and a civil litigation in the Republic of Korea, NCSoft Corporation and NC Interactive, Inc. (collectively, “NCSoft”) now bring their court battle against rival, Bluehole Studio, Inc. (“Bluehole”) and its U.S. subsidiary, En Masse Entertainment, Inc., to the Southern District of New York. NCSoft alleges that the founders of Bluehole Studio—former employees of NCSoft—took “copious amounts” of confidential and proprietary NCSoft information, computer software, hardware and artwork relating to a popular “massive multiplayer online role-playing game” (“MMORPG”), Lineage 3. NCSoft continues to state in its complaint that the former employees planned to create a competing product using the same work they did for developing Lineage 3 while at NCSoft.

In 2009 the former employees were convicted by a Korean criminal court for the theft of valuable trade secrets from NCSoft and the convictions were upheld in part by the appellate court. A year later, a Korean civil court held that the same employees misappropriated NCSoft’s trade secrets and awarded NCSoft damages in addition to an injunction preventing the employees and Bluehole from further using NCSoft’s trade secrets. On appeal, a Korean appellate court upheld the injunction but reversed on damages. Currently, the criminal convictions and civil judgment are pending on appeal before Korea’s highest court.

NCSoft and Bluehole’s court battle now crossed the seas into the U.S. since Bluehole announced plans to release in the spring of 2012 an English-language version of a 2011 Korean MMORPG, TERA, which was allegedly developed using NCSoft trade secrets, notwithstanding the injunction from the Korean civil court.

NCSoft is seeking a preliminary and permanent injunction to prevent Bluehole from launching TERA in the U.S. Alternatively, it seeks damages for the “substantial harm that such a launch will inevitable cause NCSoft.” NCSoft’s other claims in the complaint include copyright infringement, breach of confidence, unfair competition and unjust enrichment.