CANADIAN PATENT REPORTER
Delrina Corp. carrying on business as Carolian Systems v.
Triolet Systems Inc. et al.
[Indexed as: Delrina Corp. v, Triolet Systems Ine.]
Court File No, 12515/86
Ontario Court (General Division), O'Leary J. February 12, 1993.
Copyright — Subject-matter — Literary works — Computer programs—
Subsistence of right — Copyright in set of instructions — Non-literal portion
of program subject-matter for copyright — Performance monitoring tool for
Hewlett-Packard computer HP3000— Object code as machine readable
form of program — Plaintiff's program known as “Sysview” — Defendant's
program known as “Assess” — Both programs designed to work on HP3000
computer — Some performance monitoring tools in public domain — Policy
of U.S. Copyright Office as to screen displays — Both literal and non-literal
portions of plaintiffs’ program protectable under Canadian Copyright Act,
R.S.C. 1985, c. C-42 — Functional elements of idea not subject-matter for
copyright — Lines common to HP3000 computers not protectable — Sub-
stantial portion of plaintiffs’ Sysview interface not subject-matter for copy-
right — Some portions of source code copyrightable — Wording of licence
agreement that of solicitor not of employee of plaintiff.
Copyright — Infringement — Copying —Program of performance moni-
toring tool designed to assist user to use HP3000 computer more
efficiently — Source code for performance monitoring tool — Plaintiff's and
defendant’s programs having same purpose or function — Failure to estab-
lish defendants’ source code “Assess” copy of plaintiff's source code
“ysview” — Right to use of skills in competition with former employer —
Time taken in writing code of defendant— Similarities between source
codes of parties — Employee author of both codes — Intrinsic evidence of
copying — “Bugs” in both systems — Assess supporting same terminals as
Sysview — Same hidden command in both systems — Copying of some lines
being de minimis — Infringement not established — Infringement by copy-
ing particular screen display produced from stored instructions — Abstrac-
tion, filtration and comparison as to steps to establish substantial similarity
of works — Look and feel to establish protectable expression — Removal of
material from program not protectable subject-matter for copyright —
Functional subject-matter — Copying material in public domain not infringe-
ment.
1—47 CPR. (34)2 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
‘rade secrets and confidential information — Computer program — Per-
formance monitoring tool for Hewlett-Packard HP3000 computer — Source
code — Retention of customer lists — Lists not misused — Materials retained
of little use to former employee — Materials taken destroyed by former
employee — Pricing policy not trade secret— Function of source code not
trade secret— Right of employee to compete — Employee entitled to use
own skills — Employee free to create source code “Assess” without copying
source code of plaintiff — Defendant not taking trade secret of plaintiff.
Employment — Fiduciary duty — Computer programmer — Programmer
designing source code for performance marketing tool (Sysview) for
Hewlett-Packard computer (HP3000)—Programme~ designing tool for
same computer having same function after leaving plaintiff (Assess) —
Programmer not officer or director of former employer — Retention of
customer lists — Lists not misused — Relationship with customers — For-
mer employee not becoming aware of any special business opportunity while
employed — Right of employee to compete — Employee entitled to use own
skills and memory — Defendant not in breach of fiduciary duty.
Contempt of court— Grounds — Interlocutory injunction obtained by
plaintiff — Action dismissed at trial — Fai
tion of earlier order —Interlocutory injunction granted because of similari-
ties of programs of parties — Similarities not resulting in infringement at
trial— Programs for performance monitoring tool for HP3000 computer —
Liability of plaintiff on undertaking — Trial of issue to establish damages on
restraint from marketing program — Contempt not established.
The individual defendant, Duncombe, while employed by the plaintiff as an
experienced professional computer programmer, wrote a source code for a
performance monitoring tool, Sysview, designed to work on the HP3000 computer.
After leaving the plaintiff, Duncombe wrote a source code for a performance
monitoring tool for the HP3000 computer which he marketed through the
corporate defendant in competition with the plaintiff.
Duncombe was not an officer or director of his former employer.
Some basic monitoring tools or programs were in the public domain and were
freely contributed to the public by their creators.
Duncombe on leaving took with him some materials including a list of lessees of
the plaintiff for its Sysview program.
The plaintiff took action for copyright. infringement of the program and a
licensing agreement, taking of trade secrets, and breach of fiduciary duty
The plaintiff pointed to similarities between the systems Assess and Sysview,
“bugs” in each system, the short time taken by Duncombe in writing the program
Assess, the fact that both programs support the same terminals, the use of the
same hidden command and certain numbers in both systems.
The plaintiff had obtained an interlocutory injunction restraining the defendants
from marketing the program Assess. It alleged that the defendants were in breach
of that order.
Held:
1. Result
The action is dismissed. The charge of contempt is also dismissed. The damages
suffered by the defendant by reason of the injunction are to be assessed,DetRina Corp. ¥. TRIOLET SySTEMS INC. 8
2. Copyright
(a) Subsistence of copyright
By statute, copyright subsists in a computer program as a set of instructions
embodied or stored in any manner. This definition includes both literal and non-
literal aspects of the program.
A particular screen display is a visual reproduction of the instructions that the
creator of the program embodied or stored in the computer. If someone copies the
screen display he infringes any copyright of the owner of the work held in it. The
sereen displays of the two programs are not simply the products of the two
programs. They are the most essential part of them.
In determining what parts of a program are subject of copyright the court will
take three steps, namely, abstraction, filtration and comparison to distinguish an
idea from its expression. The three-step test will also be applied to the
determination of substantial similarity for infringement.
The plaintiff's allegation that Duncombe copied the look and feel of the Sysview
user interface (the display screens and keyboard commands) presupposes that
Sysview’s user interface or substantial portions of it are copyrightable. It cannot
be concluded that any substantial portion of the Sysview interface is subject-
matter for copyright.
(b) Infringement of copyright
Any copyright of the plaintiff was not infringed by the defendants.
Duncombe had ample time to design, write and test the source code, Assess,
write the manual for the program, perform the consulting work and other tasks
without having copied the source code Sysview.
All the similarities of the two programs, of which there are many, both as to
source code and other portions of the programs, can be accounted for without any
suggestion arising that there was copying. Some information came from a
common source. Copying ideas from functional products is not enough to establish
infringement. In determining infringement a method must be found to weed out
or remove from copyright protection those portions not protected by copyright.
The extrinsic evidence does not justify a finding of copying, The so-called bug
was deliberate on the part of Duncombe, who was the author of both programs, to
deal with a difficult programming problem, The logical reason for making Assess
capable of supporting all the terminals that Sysview supported was to enable
Duncombe to say Assess could do everything that Sysview could do and more. The
fact that both programs have the same hidden command is not intrinsic evidence
of copying. Duncombe simply used the same convention for the same purpose in
Assess as in Sysview.
Duncombe's evidence that Assess was written without copying Sysview is
accepted, Any lines he copied were unwittingly copied and were de minimus.
Any copyright in the licence agreement belongs to the solicitor not the plaintiff.
8, Breach of fiduciary duty
Duncombe was not a person who ran the plaintiff company. He was not an
officer or director. The submission that Duncombe owed his former employer a
duty beyond the duty of respect for trade secrets and keeping customer lists
confidential is rejected.4 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
Duncombe was not privy to secret or special knowledge of customers. He did
not become aware of any special business opportunity of the plaintiff. Duncombe
owed no duty not to use skills he acquired while in the plaintiff's employ.
4, Trade secrets and customer lists
(a) Trade secrets
Duncombe did not have any seerets about the Sysview product. He was not
taught trade secrets or anything else by the plaintiff which he used or was likely to
use in competition with the plaintiff.
The pricing policy of the plaintiff is not a trade secret. The pricing of the
plaintiff would quickly have become apparent in the market.
The function of Sysview and exactly what information it could produce for a
user is not a trade secret.
(b) Customer lists
Duncombe retained customer lists prepared by him when he was with the
plaintiff including a list of those customers that had leased the Sysview program,
‘The most likely customers for the Assess program were HP3000 computer owners
who did not have performance monitors.
Sending promotional material to all HP3000 owners could be easily accom-
plished without borrowing a list of such owners from the plaintiff. Whether the
lists were kept deliberately or accidentally, there is no evidenee that they were
misused to the prejudice of the plaintiff.
‘The issue of customer lists is of little help to the plaintiff.
Structural Dynamics Research Corp. u. Engineering Mechanics Research
Corp., 401 F Supp. 1102 (1975); Northern Office Micro Computers (PTY) Ltd. v.
Rosenstein, [1982] FS.R. at p. 188; Lotus Development Corp. ». Borland Interna-
tional, Inc., U.S. Dist. LEXIS 11358 (1992), apld
Canadian Aero Service Ltd. v. O'Malley (1978), 11 C.PR. (2d) 206, 40 D.L.R.
(8d) 371, [1974] S.C.R. 592; Creditel of Canada Ltd. v. Faultless (1978), 36
C.PR. (2d) 88, 81 D.L.R. (8d) 567, 2 B.L.R. 239, 18 O.R. (2d) 95, distd
Broderband Software Inc. v. Unison World Inc., 648 E Supp. 1127 (1986);
Apple Computer, Inc. v. Microsoft Corp. and Hewlett-Packard, U.S. Dist. Ct.,
August 7, 1992, consd
Other cases referred to
Edgar T. Alberts Lid. », Mountjoy (1977), 86 C-ER. (24) 97, 79 D.LR. (8d) 108,
2 BLR. 178, 16 OR, (24) 682, [1977] 2 A.C.WS. 314; Computer Associates
International, Inc. v, Altai, Inc., Second Cireuit U.S. Court of Appeals, June 22,
1992; Lotus v. Paperback, 740 F. Supp. 37 (1990); Carolian Systems Interna-
tional Inc. v. Triolet Systems Inc. (1989), 26 C.PR. (8d) 87, 14 A.C.W.S. (8d) 425
Statutes referred to
Copyright Act, R.S.C. 1985, ¢.C-42, ss.2, definitions “computer program”
[enacted R.S.C. 1985, ¢. 10 (4th Supp.), s. 1(3)], “literary work” rep. & sub.
idem, s. 1(2)], 8(1)(d), 5(1)
Copyright Act (US.), 8. 102
AcTION for copyright infringement, breach of fiduciary duty,
taking of trade secrets, dismissed.DBLRINA CorP. V. TRIOLET SYSTEMS INC. 5
Thomas J. Dunne, Q.C., and Nyron B. Dwyer, for plaintiff.
T. James Treloar, Paul K. Mergler and Paula L. Bateman, for
defendants.
O’Leary J.:—Carolian Systems International Inc.’s action for
an injunetion restraining Triolet Systems Inc. and Brian Dun-
combe from copying or using the computer programs of Carolian
has been tried together with an issue as to whether or not Triolet
and Duncombe should be held in contempt of court for breaching
the March 29, 1989 order of McRae J., which prohibited them
from marketing the product Probe 3000 [Carolian Systems
International Inc. v. Triolet Systems Inc. (1989), 25 C.PR. (3d)
87, 14 A.C.WS. (8d) 425 (H.C.J.)].
Since it began this action, Carolian has merged with Delrina
Corporation and since that merger the action has been carried on
by Delrina. I will, however, in these reasons refer to Carolian as
being the plaintiff and make no further mention of Delrina.
Duncombe, a highly experienced programmer, was employed by
Carolian from January, 1984 to December 4, 1985. During much of
that period, Duncombe’s task was to improve the function of, and
rewrite the source for, “Sysview”, a performance monitoring tool
that Carolian had developed for use on a Hewlett-Packard com-
puter known as the HP3000. The Sysview program assisted a user
of it to determine whether a HP3000 computer was being used
efficiently and, if not, how to improve its efficiency. Carolian
licensed the use of its Sysview program to the owners of HP3000
computers. Carolian also contracted to assist or “support” licensees
in their use of Sysview.
Near the end of May, 1986, Carolian learned that Duncombe was
marketing a program he called Assess 3000 that was markedly
similar in function, appearance, and operation to its Sysview
product. Carolian brought this action on July 2, 1986, and,
eventually, obtained an interlocutory injunction in effect prohibiting
Duncombe and his company Triolet Systems from marketing
Assess,
After a lengthy trial, Carolian has not satisfied me that it is
probable that Duncombe in creating Assess copied any substantial
portion of the Sysview program. While I cannot and do not exclude
the possibility that Duncombe copied portions of Sysview’s struc-
ture, source code, and user interface (see Glossary, app. A,
attached, for meaning of technical words used herein [post,
p. 48]), I am not convinced that it is more likely than not that he
did. Assess and Sysview are so similar that the possibility of6 CANADIAN PATENT REPORTER 47 C.P.R. (8d)
copying cannot be excluded. Sysview and Assess are performance
monitoring tools designed to work on the HP3000 computer. They
have then the same purpose or function. Duncombe’s memory,
experience, and idiosyncratic programming methods and habits,
plus the limitations on variation imposed by the Hewlett-Packard
HP3000 computer, can account for all similarities.
Since copying by Duncombe has not been established, Carolian
has not proved that Duncombe infringed any copyright it holds in
the computer program, Sysview.
Carolian alleges not only copyright infringement against Dun-
combe, but also that on leaving Carolian he breached a fiduciary
duty he owed to Carolian, by creating a program similar to
Sysview and using it to compete against Carolian. Duncombe was
employed by Carolian as a highly skilled programmer. He was not
an officer or director nor one who ran or helped run Carolian. While
at Carolian, Duncombe increased his familiarity with performance
monitoring tools. He rewrote the source code for Sysview and
enhanced its abilities. In doing so he may have upgraded his
programming skills. He owed no duty to Carolian not to use skills
acquired or improved while working for it, even if by using them he
directly competed for business with his former employer. Carolian’s
request for an injunction prohibiting the marketing of Assess is,
therefore, denied.
Tam not satisfied that Duncombe violated the order of McRae J.
and so find Triolet and Duncombe not guilty of the contempt of
court allegation made against them.
History
The issues in this action arise out of the background and conduct.
of two men, Joseph Ian Campbell, the former president of
Carolian, and Brian Duncombe, one of the defendants.
Campbell began working for Hewlett-Packard in 1974 and left
Hewlett-Packard in 1981 to begin his own consulting business.
While at Hewlett-Packard he received extensive and thorough
training, both in Canada and in California, in regard to the
HP3000 computer. He learned the entire make-up of both the
hardware and software of the HP3000. So far as this case is
concerned, it is of particular relevance that he become thoroughly
knowledgeable in regard to that computer’s Multi-Programming
Executive system (MPE), an operating system which provides
services to programs written and used by others, such as Sysview.
The programming language or code used for programming the
operating system of the HP3000 is called SPL and that language is
unique to the HP3000. :DELRINA Corp. V. TRIOLET SYSTEMS INC. 7
As indicated, Campbell left Hewlett-Packard in 1981 to become
an independent consultant. To enable him to advise owners of
HP8000 computers as to the state of efficiency of their computers,
Campbell needed a diagnostic or performance monitoring tool that,
would tap into and relay back to him, or any user of it, information
being created or stored in the computer as to the amount and kind
of use then being made of the computer by perhaps hundreds of
persons located at various terminals connected to it, and the rate at
which the computer was handling the various tasks being given to
it.
Some rather basic monitoring tools or programs were already in
the public domain, having been freely contributed by their creators,
and so available to anyone who needed them. Campbell put.
together in one program, and used as his monitoring tool, a lot of
individual efforts produced by others.
Gradually, Campbell made deletions from an improvements to
his monitoring tool. By 1983, he had improved the program to the
point that it was a saleable product. By that time he had rewritten
most of the source code for the program. Campbell also wrote an
electronic spread sheet program he named Cale-1.
On April 12, 1983, with the assistance of one McElroy, who
provided the capital, and one Gurney, who was to spearhead
marketing, Campbell incorporated Carolian Systems Inc. Market-
ing of Sysview and Cale-1 did not commence until after this date.
In 1983 Carolian hired Theodore Rypma to improve Calc-1. He was
also to “support” it, that is to say, to teach and advise customers
who leased it as to its proper use. In January, 1984, Carolian hired
Duncombe to do the same thing for Sysview. Duncombe was
assigned the task of turning Sysview into a more functional and
robust product. He was given the freedom to completely rewrite it
and that is what he chose to do.
Brian Duncombe had been employed at Hewlett-Packard from
1978 to 1984. Like Campbell, he also received extensive training in
regard to the HP3000 computer, both in Canada and in California.
He spent much of his time writing source code to meet the
particular needs of customers using various programs that oper-
ated on the HP3000 computer. Some indication of his expertise as
a writer of computer programs is to be found at ex. 1, vol. 1, tab
33. That exhibit is a proposal made by the Duncombe to Northern
Telecom as to a program Duncombe was prepared to write for it to
permit it to maintain an up-to-date back-up for all information
stored on a computer. Northern Telecom apparently did not accept
the proposal and order the production of the program. The exhibit
illustrates how a programmer must conceive exactly how he will8 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
accomplish a particular task and reduce that concept to writing
before he can design the screen displays and write the source code
that will make his concept a reality. This particular concept created
by Duncombe later became the basis for a program produced by
Carolian and called “Shadow” or “Silhouette”.
According to Gurney, when Carolian hired Duncombe in January,
1984, Duncombe was then one of two top technical experts at.
Hewlett-Packard Canada. Gurney testified that Duncombe had
particular expertise as a computer performance expert.
When he started working for Carolian, Duncombe was asked to
look at Sysview and see what he could do to improve it. When he
examined the Sysview source code, he noted it was remarkably
similar to that of “SOO”, a performance monitor in the public
domain. This is not surprising for Campbell testified that when he
first put together his performance monitoring tool, that later
became Sysview, he had used a “SOO” program that had been
rewritten by a friend.
As already indicated after he had examined Sysview, Duncombe
thought it best that he start from scratch and create a professional
product. He prepared the design for the new version of Sysview in
a week or two. He started writing source code, testing and
debugging that code, in the latter half of March, 1984. By the end
of June, Carolian was testing the new Sysview and showing it at
trade shows. It was released to certain chosen prospective custo-
mers for “Beta” testing in late August, 1984. It was ready for
general release by October, 1984. Most of Duncombe’s time both
before and after October, 1984 was spent on Sysview, up until July,
1985 when he turned it over to William Douglas Woods, another
Carolian employee. A program such as Sysview is constantly being
upgraded in response to information and demands from its users.
Substantial changes were made to it after October, 1984, such that.
revised versions of it were released in May, June and July, 1985.
For reasons not relevant to this action, Duncombe, Rypma and a
third employee, Ste. Marie, decided to form their own company to
create computer programs and to perform consulting work. They
resigned at Carolian on December 3, 1985, and incorporated a
company under the name Triolet Systems Inc.. But in January,
1986, Rypma and Ste. Marie decided to give up the idea and took
employment at Hewlett-Packard.
Duncombe decided not to return to Hewlett-Packard and to stick
with Triolet on his own. He decided to develop a performance
monitoring ‘tool. He knew that such a program would have to
compete directly with Carolian’s Sysview product. He, therefore,
determined that, generally speaking, it should perform every taskDELRINA Corp. V. TRIOLET SysTEMs INC. 9
that Sysview was capable of performing. He planned as well to
improve on Sysview and in fact did so. He began working on his
program (Assess 3000) about the middle of January, 1986. He
began writing the source code for it in early February and Assess
was ready for Beta testing by May 7, 1986. Duncombe thus spent
approximately three months writing the source code for Assess. He
testified that he had written the source code for the new version of
Sysview which he had created for Carolian in approximately four
and one-half months.
At the end of May, 1986, he was demonstrating Assess at a trade
show and an employee of Carolian noted that it was very similar to
Carolian’s program, Sysview. On learning of the existence of
Assess, Campbell immediately concluded that it had been copied
from Sysview. He was and still is of the view that Duncombe could
not have created Assess by May, 1986, unless in doing so he copied
the Sysview source code. The time taken by Duncombe to create
Assess is in the mind of Campbell irrefutable evidence that he
copied it from Sysview. In using the word “copying”, Campbell uses
it in the literal sense. He means that Duncombe had a copy of
Sysview before him, including its source code, when he created
Assess and that he copied from it when it benefitted his work to do
so — which was most of the time. Campbell is not talking about
copying from memory that Duncombe might have had for some
portions of the source code, the display screens, and other portions
of Sysview from having created it from scratch while at Carolian. I
also, in these reasons, use “copying” in the literal sense I have just
described.
Certain that Duncombe had copied Sysview and that it was
illegal for him to have done so, Campbell set about building a case
against Duncombe that he could use to get an injunction that
would prohibit Duncombe from marketing Assess. Campbell as a
highly trusted former Hewlett-Packard employee had access to
Hewlett-Packard’s premises in Mississauga and to the Hewlett-
Packard computer that various customers of Hewlett-Packard used
from time to time. Campbell guessed correctly that Duncombe was
using the Hewlett-Packard computer. Campbell was able to locate
the material that Duncombe had stored on the Hewlett-Packard
computer. Campbell quickly reviewed that material and satisfied
himself that it contained material that in his view Duncombe had
illegally taken from Carolian, including a record of those customers
of Carolian that had leased from Carolian its Sysview program.
Campbell copied onto a tape he had taken with him for that
purpose the material Duncombe had stored on the computer at
Hewlett-Packard. He eventually sent a copy of this material to his10 CANADIAN PATENT REPORTER 47 C.P.R. (8d)
solicitors and it was used by them in obtaining the interlocutory
injunction I have already mentioned.
While during the trial Duncombe claimed he had not retained
any documentary or other records or material that he had prepared
or made copies of while employed by Carolian, I conclude that he
had retained lists, quite properly prepared by him while at
Carolian, of Carolian customers and in particular those customers
that had leased the Sysview program from Carolian. Those lists
had been prepared by Duncombe for use in his frequent dealings
with Carolian’s customers for it was part of his duties to “back up”
the Sysview product in the hands of customers. Further, prior to
his leaving Carolian, he had been working on a new program that
might have held special interest for customers that had already
acquired Sysview.
Why Duncombe retained those lists is not altogether clear. While
in marketing Assess he would be competing directly with the
Sysview product, HP3000 owners who had already purchased one
performance monitor (Sysview) were not the most likely persons to
want to acquire another (Assess) even if Assess could perform a
few chores Sysview did not. Rather, his most likely customers
would be HP3000 computer owners who did not have performance
monitors. It is quite clear on the evidence that sending promotional
material to all HP3000 owners could be easily accomplished
without borrowing a list of such owners from Carolian.
While at Carolian, Duncombe had always kept at his home a
back-up tape of Carolian’s programs and other records, just in case
. by accident those records kept at Carolian’s premises were lost.
This was done with the full approval of his superiors at Carolian.
On this same back-up tape Duncombe kept his own records, such
as copies of papers he had presented at trade shows both before
and while being employed by Carolian. Duncombe testified that
after leaving Carolian in December, 1985, he destroyed all Carolian
property in his possession and eliminated from his back-up tape
everything except the record of his own material.
I found both Campbell and Duncombe to be exceedingly believa-
ble witnesses each fully convinced of the righteousness of his own
actions. Duncombe testified that when he first received Campbell’s
affidavit in July, 1986, indicating that Campbell had found a list of
Carolian customers on Duncombe’s file at Hewlett-Packard, he
assumed that he had missed removing that information when
deleting Carolian from his tape. He said that shortly thereafter, he
went to Hewlett-Packard and removed that material from his
records at Hewlett-Packard.DELRINA CorP. V. TRIOLET SYSTEMS INC. u
Years later, he learned that what Campbell ended up with, after
he had looked at Duncombe’s files at Hewlett-Packard, was a very
garbled version of what was on those files. I accept Campbell’s
evidence that through errors made by him he ended up with the
with only parts of what was on some of those files. Duncombe, on
the other hand, is now convinced that he removed all Carolian
property from his back-up tape in December, 1985, and that
Campbell or someone from Carolian planted those customer lists
and other material on his files at Hewlett-Packard. I am satisfied
that Duncombe is mistaken in that regard.
Since the customer lists would be of slight value to Duncombe, it
is hard not to accept his original position that he simply missed
removing them from the back-up tape in December, 1985, and they
remained on by error,
At least one of the two lists of names and addresses found by
Campbell contained not just the names of Carolian customers or
prospective customers, but also names of contacts (persons not
Carolian customers) Duncombe had built up over many years, both
before and while working at Carolian. I have a lingering doubt that
Duncombe retained those lists deliberately, not wanting to go to
the trouble of weeding out his list of contacts from those of
Carolian customers or prospective customers.
Whether those lists were kept deliberately or accidentally, there
is no evidence there were misused in any way to the prejudice of
Carolian. While I have no doubt that the existence of those lists on
Duncombe’s files at Hewlett-Packard helped Carolian obtain its
interlocutory injunction of February 3, 1987, the lists themselves
are not the subject-matter of that injunction. That injunction
prohibited the defendants from marketing Assess and from using,
copying or selling any of the plaintiff’s computer programs.
In dealing with the allegation that Duncombe copied Sysview in
creating Assess, I find the issue of the customer lists of little help.
I deal now with what Carolian alleges is evidence of copying.
(1) Assess could not have been created in so little time unless
there was copying of Sysview
The argument of Carolian goes as follows: Duncombe did not
commence to write the source code for Assess until February 6,
1986. Assess was released for Beta testing on May 8, 1986. During
that three-month period Duncombe did not spend all his time
writing and debugging code, for he did some consulting work for
Carolian, wrote a 100-page manual for Assess, and attended at
least one trade show during that period. The source codes for12 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
Assess and Sysview are both approximately 14,000 lines in length.
For Duncombe to have written the source code for Assess in that
three-month period he must have copied the source code of
Sysview. Further, writing and debugging source code is not the
only major time consumer in the creation of a computer program.
Designing the product, that is to say, deciding on its function and
just how that function is to be accomplished, how the information
located by the program will be displayed on the screen for the user,
and how the user will command the program to produce desired
information together take up 35% of the time required to create a
computer program such as Assess. There must then have been
copying not only of source code but also of the concepts and
designs that produced Sysview.
Answer: Duncombe decided after being hired by Carolian, that
if Sysview was to perform the functions that Carolian wanted it to
perform then it had to be completely rewritten. The ideas for the
rewritten Sysview, so far as screen layouts, command and modifier
structure of the user interface and the internal structure and
program code are concerned, were Duncombe’s. Duncombe began
his design and rewriting of Sysview in the latter half of March,
1984 and had it completed to Beta test stage in approximately four
and one-half months. Having already designed Sysview, Duncombe
was able to design Assess in a fraction of the time it took him to
design Sysview. Stanley R. Sieler Jr., a computer expert who has
worked with the HP3000 since 1978, including four years with
Hewlett-Packard in its operating system laboratory in California,
testified that an experienced programmer could have written the
source code for Assess in three months of normal 40-hour weeks.
Duncombe in writing Assess was working for himself, and not 40-
hour weeks but, perhaps, double that number of hours per week.
He had ample time to design, write and test source code, write the
manual for the program, perform his consulting work, and any
other tasks referred to by the plaintiff, by May 8, 1986 — without
having copied from Sysview.
(2) The similarities between Assess and Sysview are so great
the former must have been copied from the latter
Answer: In my view, all the similarities, and there are many, can
be accounted for without any suggestion arising that there was
copying. As pointed out by Sieler, a HP3000 performance monitor
operates by communicating with the computer's operating system
and by telling it either it wants information about the computer’s
activity that is stored in the “measurement interface” (a feature
built into the HP3000 for that very purpose), or by telling it itDELRINA Corp. V. TRIOLET SYSTEMS INC. 18
wants to measure particular activities or processes that are not
measured by the interface but is to be found in specific locations as
documented in the system tables manual that is put out by
Hewlett-Packard. The obtaining of information by using the
system tables can only be accomplished in the manner dictated in
the manual.
Given that Hewlett-Packard has determined what information is
available to be dug out and displayed on a screen for the benefit of
a user and in regard to certain information just exactly how it is to
be retrieved, I have no hesitation in accepting Sieler’s statement.
that “given the nature of some of the coding problems in system
monitor programs (e.g. Assess, Sysview, OPT, SOO, Glance, Probe,
and others) a degree of similarity would be expected across all
such programs, regardless of who authored them”. But here
Duncombe was the author of both Sysview and Assess. In my view,
the similarities that exist are all accounted for by:
(a) the intention to make Assess capable of performing every
function that Sysview can perform;
(b) the fact that the measurement interface documentation (pre-
pared by Hewlett-Packard) has a long list of “names” of items
it returns. A programmer who wishes to use the measurement
interface will typically create variable names with a common
prefix, representing different kinds of data returned by the
measurement interface. Additionally, the variable names will
typically be created and listed in the same order in the source
code as the item names are given in the measurement interface
documentation;
(c) programmers develop styles or habits, in their programming;
(d) a programmer will develop a “bag of tricks”, or a common way
of approaching problems;
(e) some problems in programming do not lend themselves to
multiple solutions. Such problems can be solved in only one or
two ways, no matter how many different programmers tackle
them;
(f) many lines of source code in both Assess and Sysview are
common to HP3000 performance monitoring tools;
(g) Duncombe, where he found it enhanced the ability of Assess to
compete with Sysview, and where he felt a change from his
designing of Sysview would not improve Assess, created user
interface, including screens, in Assess virtually the same as
those in Sysview — not by copying from Sysview but from his
memory;14 CANADIAN PATENT REPORTER 47C.P.R. (3d)
(h) it is not evidence of copying that the author of both Sysview
and Assess should choose to make available to the user of each,
much the same information, even though much more informa-
tion has been made available by Hewlett-Packard on its
HP3000. The author would choose the information that is most
helpful.
3. There is here intrinsic evidence of copying, that is to say, the
same unusual phrasing, and mistakes or “bugs” in both
Sysview and Assess
Answer: Such intrinsic evidence would establish copying for
even the same author would not by accident make the same
mistakes in both Sysview and Assess, unless he copied one from
the other.
(a) Input “Bug”
Campbell testified that Sysview and Assess have a common
“pug”. Each program has an exception reporting feature. Sysview
has Asyst and Assess has Xpert. The feature permits the user to
specify minimum and maximum parameters for certain statistics
reported on by the program. Both programs provide a separate
screen for inputting new parameters. Asyst and Xpert report to the
user every time the parameters are not met. For example, a user
may input 2.5 seconds as the maximum for response time. Every
time the response on the system is above 2.5 seconds, the feature
reports that occurrence to the user.
In both Sysview and Assess the number inputted by the user is .
not always the number that becomes the new minimum or
maximum parameters. If and only if the following conditions are
met will the result be equal to the input:
(i) there must be a decimal point in the inputted number;
(ii) there must be at least one character before the decimal point;
(iii) there must be exactly one character after the decimal point.
Most often (but not always), the number inputted comes out as
1/10th of the inputted figure. Another way to explain the alleged
bug is that the decimal is removed by the program from the
inputted number, if there is one, and then a decimal point is put
back in the number one decimal place from the right. The reaction
of the program to inputted numbers is as follows:
If the input is 2.5, the result is 2.5.
Tf the input is 2.50, the result is 25.
If the input is 2, the result is .2.DELRINA CorpP, V. TRIOLET SYSTEMS INC. 15
If the input is 20, the result is 2.
If the input is .25, the result is 2.5.
Duncombe explained that this alleged flaw or bug, common to
both Sysview and Assess, was not a flaw or bug, but was
deliberate on his part. As Sieler explained, the HP3000 operating
system will not handle decimal points and this makes it difficult for
a programmer to write code that will deal with inputs with
anything different from a predetermined number of decimal points.
The evidence is uncontradicted that this particular function of
Sysview and Assess known as Asyst and Xpert, respectively, is one
that is seldom used. As Duncombe explained, if the user of either
Sysview or Assess enters the new parameters using the format.
precisely in the form, as shown by the existing ones on the screen,
then the program will accept the new parameters as given to it and
the user will see that his new parameter has been accepted as
given. If the user leaves out the decimal point and say inputs 2
instead of using the screen format of 2.0, he will see immediately
that the program has recorded his parameter as .2. In Duncombe'’s
opinion, the user will quickly learn to use the screen format
exactly, or realize that the program accepts his instruction as being
in 1/10th of seconds, that is to say, that the program accepts the
parameter 2 as asking it to respond as if the request were .2
seconds. Duncombe says he dealt with the decimal problem in this
way to save excessive programming work. In short it was his way
of dealing with a difficult programming problem.
The Sysview manual, apparently prepared by someone other
than Duncombe and perhaps even after he left Carolian, instructs
the user that in regard to new parameters, a decimal is implied, but
the alleged “bug” was not fixed.
Duncombe used the same general method for changing parame-
ters when he wrote Assess as he had done when he wrote Sysview.
He did not, however, according to the evidence of Sieler, use the
same code and in fact used different algorithms in places. Even if
one accepts, as Sieler eventually did, that it is a form of flaw or a
“bug” for a program to alter a parameter inputted by the user, it
does not follow in this case that the “bug” was unwittingly copied.
Duncombe having determined how he would deal with the coding
problem when he wrote Sysview simply decided to deal with that
problem in the same way when he wrote Assess.16 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
(b) Sysview and Assess support (will work on) the same
terminal types even though some of them are rare
Counsel for Carolian submits that supporting those’ terminals
made commercial sense for Carolian because it had customers with
those terminals and Carolian itself owned one of those terminals.
But it is submitted the chance of Duncombe finding a customer
with those rare terminals was so slim that it made no sense for
Assess to support them. Therefore, the argument goes, Assess
supported the same terminals simply because Assess was copied by
Duncombe from Sysview.
I have trouble understanding the logic behind this argument. It
seems to presuppose that copying could be done by some kind of
program or converter and would have required no effort or time on
the part of Duncombe. Even copying of code requires considerable
effort, so if supporting the terminals made no sense, then the
copying also makes no sense,
Further, Sieler analyzed the program source codes in Assess and
Sysview supporting the terminals in question and found them to be
significantly different not only in expression but also in methods
and algorithms used. In fact the source code supporting the
terminals was not copied.
The logical reason for making Assess capable of supporting all
the terminals that Sysview supported was to enable Duncombe to
say Assess could do everything that Sysview could do and more.
(c) The use of the numbers 96 and 64 in the code for the HDS
108 terminals in both Sysview and Assess
Campbell testified that for no good reason in writing the source
code to permit Sysview to support the HDS 108 terminal, he chose
to use the numbers 96 and 64 instead of using their more efficient
equivalent characters. According to him it is unusual and sheer
chance that Sysview source code contains those numbers. Assess
source code for the HDS 108 terminal also uses 96 and 64 and so
Campbell says that is intrinsic evidence of copying. Duncombe
testified that when he rewrote Sysview and when he wrote Assess
he used 96 and 64 in the source code for the HDS 108 terminal
because the HDS 108 manual that he had to follow to write that
source code left him uncertain about the exact characters he could
use in place of those numbers. Accordingly, it was safer to use the
numbers and that is why he used them. I find that explanation
much more plausible than that of Campbell, especially since no
witness took issue with it. The use of 96 and 64 in both source
codes is not evidence of copying but only of prudent coding.DELRINA CorP. V. TRIOLET SYSTEMS INC. WwW
(d) The same hidden command is found in both Sysview and
Assess
Sysview has a command hidden from an ordinary user which
provides timing information. Hidden commands are used by
programmers in the development stage and are sometimes used for
support purposes when a customer has a problem with the product.
Sysview’s hidden command for timing is called by inputting a
dollar sign symbol ($). In Assess, the hidden command is called by
inputting the same symbol.
That is not intrinsic evidence of copying. It was Duncombe’s
convention to use a dollar ($) sign as the symbol to access timing
information because “$” represents the “cost” in computer system
time that it took to run the program. He simply used that same
convention for the same purpose in Assess.
4. A comparison of the source codes for Sysview and Assess
show overwhelming similarities that could only arise
through copying
Answer: Except for some 60 lines of code out of 14,000 lines,
something I will return to, the evidence does not support this
proposition. Sieler, a computer expert who examined the source
codes of both Sysview and Assess, states in his report ex. 39,
“Assess is new and has not been copied from the source code for
Sysview.”. I have reached the same conclusion. I have already
stated why similarities exist in the two programs without copying
and these reasons apply to the source code as well as to other
portions of the programs.
Carolian in the fall of 1986, sent copies of both the Sysview and
Assess source codes to an expert, Mr. Lowell Arnoff, for his opinion
as to whether that of Assess had been copied from Sysview’s.
Arnoff reported to Carolian but his report has never been produced
and he did not testify at the trial. I assume his evidence would not
have helped Carolian.
Of greater concern is the fact that at the time of the successful
motion for an interlocutory injunction, on February 3, 1987, before
Fitzpatrick J., the existence of a report from Arnoff was not
revealed to the court or the defendants. Fitzpatrick J. might well
have refused the injunction unless the report was made available to
him.
It should perhaps be pointed out that the source code for
Sysview is written in SPL computer language while that for Assess
is written in MSPL. That fact does not, of course, eliminate the
possibility of copying. An original literary work protected by
2—47 CPR. (8d)18 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
copyright and written in English is just as much copied if the
plagiarist copying it translates it into German.
Also it should be noted that Assess is broken down into two
distinct processes although that fact is not apparent to the user of
it. One process collects the desired data and passes it through a
“pipe” to the second process which displays it for the user. Sysview
uses one process only.
While neither of these substantial differences between Sysview
and Assess prevent copying, they do show Duncombe’s mind set —
to create in his own way a more elegant and comprehensive
monitoring tool and on all the evidence that is what he accom-
plished. Finally, I accept Duncombe’s evidence that he created
Assess without copying Sysview in any way.
60 lines of source code
After Duncombe had finished rewriting Sysview, he was asked to
help write a new program called Intact. To write that program he
had to access the same system tables information he had accessed
when writing Sysview. The method of accessing that information is
not very original since it is dictated by the Hewlett-Packard MPE 5
System Tables Manual.
He extracted the relevant source code (something less than 60
lines) from Sysview and used it in Intact. Because it might be
useful in writing some other program, he also added a copy of it to
his tool kit (a lawyer might say his book of precedents). It actually
was added to the tool kit of a fellow employee, one Ste. Marie,
which tool kit Duncombe had access to and later received from Ste.
Marie. When Duncombe was writing Assess he remembered he had
the code in his tool kit and used some of it — perhaps 40 lines —
without it occurring to him that its original source was the Sysview
code. Thus, unwittingly, he copied those few lines of Sysview code
in writing Assess. Had he chosen not to use his precedent from his
tool kit, it would have taken him 15 to 20 minutes to write the code
he copied.
While the decision as to which tables to access for the data
contained therein is up to the writer of the program and depends
on his assessment of the usefulness of the information from
particular tables, the actual accessing must be done as directed in
the Hewlett-Packard MPE 5 System Tables Manual. In fact,
Assess has additional system tables definitions not contained in
Sysview.
According to Sieler, the lines of code in question are only slightly
more efficient replacements for procedures provided to all HP3000
users by Hewlett-Packard. As such it is questionable that suchDELRINA Corp. V. TRIOLET SYSTEMS INC. 19
lines of code have the necessary originality of expression to be
copyrightable. But even if they do, those lines are de minimus in
both the Sysview and Assess programs. Such minor copying would
not sustain an action for breach of copyright.
Breach of fiduciary duty by Duncombe
While I have briefly reviewed the expertise of Duncombe under
the heading History, I feel some further elaboration of that
expertise is now necessary on the issue of any fiduciary duty he
owed to Carolian.
Duncombe is a 46-year-old professional computer programmer.
He earned a college diploma in 1967 in Mechanical Technology
(Applied Physics and Mathematics). His entire working career has
been in computer programming using a number of different
computer programming languages, including SPL (System Pro-
gramming Language), MSPL, FORTRAN, PL/1, COBOL, RPG,
BASIC, and ASSEMBLER, and working with a wide range of
small, medium and large computers including those manufactured
by International Business Machines (“IBM”), Data General and
Hewlett-Packard on the HP3000 computer system.
After working for several corporations and for a community
college for several years, Duncombe joined Hewlett-Packard Can-
ada in Mississauga in 1978, as a systems engineer. He had
previously worked for about eight years with issues of system
performance, which is the monitoring of the demands of many
different users and programs on a multi-user computer system to
permit the efficient ordering of priorities and maximization of the
productivity of the system. Hewlett-Packard had developed its
HP3000 computer system several years earlier and it had become
an extremely successful computer for the company with at least
15,000 to 20,000 users world wide.
With Hewlett-Packard Canada, Duncombe worked extensively
with performance monitor programs and performance issues on
the HP3000 computer that was a major product of the company.
He trained as a performance specialist with Hewlett-Packard in
Canada and spent several months in training at the company’s
computer manufacturing and software development facilities in
California, He became highly proficient in both the SPL computer
programming language developed by Hewlett-Packard for its
P8000 computer and in the MPE (Multi-Programming Execu-
tive) operating system. The MPE operating system is itself a
computer program — being one that acts as an intermediary with
the computer hardware and permits the running of application
programs on the computer.20 CANADIAN PATENT REPORTER A7C.P.R. (3d)
Application programs, which include performance monitor pro-
grams, are written in what is referred to as source code. Source
code is comprised of rather cryptic English language expressions
and readable numbers and symbols. The exact form varies with the
programming languages. When the source code is loaded into a
computer memory it is “compiled” or converted into a series of
symbols that are readable only to the computer hardware. This
machine readable form of the program is called object code.
Duncombe was promoted to systems specialist at Hewlett-
Packard. He was assigned a number of Hewlett-Packard HP3000
customers as his accounts, to provide technical support, and the list
of customers changed over the time he worked there. He became
acquainted with a large number of the HP3000 users in Canada
and ones outside Canada as well. He provided factory level training
to Hewlett-Packard staff in performance of the HP3000 computer
and in SPL. He provided customer support, training and consulting
to customers. He also attended trade shows or conferences and
presented technical papers of his own creation on subjects related
to computer performance and other areas of interest to technical
specialists working with the HP3000 computer. He became a
member of Interex, the international organization for users of
HP3000 computers, and attended its conferences in North Amer-
ica, meeting more HP3000 users outside the Hewlett-Packard
corporate environment.
Duncombe became fully familiar with the MPE operating system
used on the HP8000 while at Hewlett-Packard. This was impor-
tant for the writing of performance monitor programs, performing
consulting and training services and creating and delivering
technical papers at conferences. He fully understood the use of the
specialized computer programming and program running tech-
niques necessary for performance monitoring, such as accessing
the “privileged mode” facility in the MPE operating system.
Operating in “privileged mode” is necessary for a performance
monitor program to be written and tested but runs the risk of
“crashing” the system and terminating the operation of other
computer programs that are running at the time.
From his education and his experience, Duncombe has the high
degree of knowledge of mathematics that the plaintiff's expert
Professor Burkowski testified is necessary for the design creation
of a sophisticated computer program, and that assists in writing
the actual computer program source code. Professor Burkowski
testified that there is a great connection between computers and
mathematics, and a mathematical “bent” is necessary to create
and analyze algorithms to build a computer program that willDELRINA Corp. V. TRIOLET SYSTEMS INC. 21
operate efficiently. This mathematical background is something
that Professor Burkowski, the defendant’s expert Sieler, and
Duncombe have in common. Professor Burkowski went on to state
that having a mathematical background to do programming is
helpful but not essential as the programmer can simply follow the
dictates of the designer — but the designer should have more of a
mathematical background.
From the evidence presented at trial, it is clearly seen that a
computer programmer with a mathematical background produces
a superior product, in less time, than a programmer without such
background.
David Gurney, the current president of the Carolian division of
the plaintiff, testified that, at the time he was approached by
Campbell and hired by the plaintiff at the beginning of 1984,
Duncombe was recognized as being one of the two top technical
experts at Hewlett-Packard Canada. The other was Ted Rypma
who also testified for the defence. Gurney further testified that
Duncombe was hired for his specific expertise in performance.
Campbell and Gurney both knew Duncombe from their own days
at Hewlett-Packard and recognized that Duncombe possessed the
expert knowledge of the MPE operating system, which was
constantly being modified. Duncombe also possessed extensive
knowledge of performance of the HP3000 computer and of the
available performance monitor programs and tools that the
plaintiff needed to turn the Sysview program into a marketable
product.
At Carolian, Duncombe began by attempting to write enhance-
ments to the Sysview program. When the program did not function
properly and, in fact, “crashed” the HP3000 computer at a show in
California in February, 1984, Duncombe decided that he would
have to completely rewrite the program if it was to perform the
functions that the plaintiff wanted and was advertising. The ideas
for the rewritten Sysview in terms of the screen designs and
layouts, the command and modifier structure of the user interface,
and the internal structure and program code were Duncombe’s.
It is the position of Carolian that Duncombe held such a high
position with it that he owed Carolian a larger, more exacting duty,
beyond the duty of respect for trade secrets and keeping customer
lists confidential owed by all employees to an employer. It is said
that in addition he had an obligation of loyalty, good faith and
avoidance of conflict of duty and self-interest that continued after
he left Carolian, which prevented him from developing and selling
a product in direct competition to the Sysview product he had22 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
written from scratch and constantly improved over some one and
one-half years while he worked at Carolian.
It must be emphasized that Duncombe was not one of those who
ran Carolian. He was not a salesman. He did attend trade shows
and gave lectures and frequently assisted Carolian’s sales staff in
regard to difficulties they or their customers had in regard to
Sysview. He was a developer of computer programs and a solver of
problems, and in particular he rewrote and greatly improved
Sysview. He was not privy to secret or special knowledge as to
which customers Carolian was about to sell Sysview to. Even if he
had such information in December, 1985, when he left Carolian, it
would have been of little use to him, being badly out of date, by the
fall of 1986, when his program Assess was first ready to be leased
to customers.
I conclude that Duncombe, while at Carolian, did not become
aware of any special business opportunity that Carolian had, did
not have such contact with Carolian’s customers as to be able to
control their business loyalties, and did not learn from Carolian any
secrets about the Sysview product.
In support of its fiduciary duty proposition, Carolian relies on
certain cases on which I now comment.
Canadian Aero Service Ltd. v. O’Malley (1973), 11 C.P.R. (2d)
206, 40 D.L.R. (3d) 371, [1974] S.C.R. 592.
The principle enunciated in that case, that a senior manager and
officer of a company cannot leave the company and acquire
thereafter a business opportunity that he had attempted to acquire
for the company, by making use of the information acquired while
working for the company, has, in my view, no relevance to this
case. Here Duncombe did not take advantage of some business
opportunity he had been working on for Carolian. He came to
Carolian as a highly skilled programmer with particular expertise
as a computer performance expert. He was not taught trade
secrets or anything else by Carolian. He may have improved his
own skill in designing and programming a performance monitoring
tool. Duncombe owed no duty not to use skills acquired while at
Carolian, even if by using them he directly competed for business
with his old employer. To deprive a man from using his technical
skills is a far cry from demanding he not benefit from business
dealings he worked on for the employer. Walking off with the
benefit of some business venture, acquired because of work done
for an employer, cannot be equated to walking away from an
employer with skills honed while working for the employer.DELRINA CorP. V. TRIOLET SysTEMS INC. 23
Creditel of Canada Ltd. v. Faultless (1978), 86 C.P.R. (2d) 88,
81 D.L.R. (3d) 567, 18 O.R. (2d) 95 (H.C.J.).
Reference to this case is not helpful. There Goodman J. gave an
interlocutory injunction, but the employees had signed a non-
competition agreement and they were clearly competing.
Edgar T. Alberts Ltd. v. Mountjoy (1977), 36 C.P.R. (2d) 97, 79
D.LR. (34) 108, 16 O.R. (2d) 682 (H.C.J.).
This case fails to support Carolian’s position. The employee who
left the employer was the manager and indeed the operator of the
plaintiff's insurance business which was owned by absentee share-
holders. Operationally, Mountjoy reported to no one.
Indeed Alberts and Mountjoy support Duncombe’s position, at
p. 101, Estey C.J.H.C. stated:
It is now beyond argument that a departing servant has the right to
compete with his former employer. He may do so by establishing a business in
direct or partial competition and he may bring to that business the knowledge
and skill which he acquired while in the former service, including knowledge
and skill directly obtained from the previous master in teaching him his
business.
In my view, the cases quoted by counsel for Carolian do not
support the proposition that Duncombe owed some fiduciary duty
to Carolian over and beyond that of all employees, namely, the duty
to keep confidential, trade secrets and customer lists.
I now turn to the question of whether Duncombe failed to
respect Carolian’s trade secrets.
For Carolian to succeed on the basis that Duncombe breached
some duty of confidence he owed to Carolian in regard to trade
secrets, it first must show that he acquired some trade secret
belonging to Carolian and had used it or was likely to use it in
competition with Carolian.
I have already dealt with the customer lists that Duncombe kept
while at Carolian which he retained, perhaps by accident, after he
left Carolian. Those lists were never used by him to compete with
Carolian and, in my view, would not have been so used. They would
not have been used to compete against Carolian because Dun-
combe would not have singled out as likely customers those who
had already acquired a performance monitoring tool (Sysview).
Further, Duncombe because of his long years in the computer
programming field, his delivering of papers at trade shows, his
many years at Hewlett-Packard where he was frequently consulted
by HP3000 owners, had built up a widely recognized reputation in
the area of computer efficiency enhancement and had in turn24 CANADIAN PATENT REPORTER 47 C.P.R. (3d)
become acquainted with a vast number of HP8000 computer
owners. He did not need a list of persons Carolian had dealt with in
order to market Assess. His primary method of marketing Assess
was going to be to demonstrate it at trade shows and arouse
interest both by the superiority of his product and his own expert
ability to guide and assist anyone who should lease it. He would
also have advertised his product in the Interex publication received
by thousands of HP8000 owners. If he wanted to send out
promotional material to HP3000 owners he did not need a list of
Carolian customers to do so. Interex would assist in that regard.
Obviously, he was also able to approach any contact that he knew
would be particularly likely to want Assess because of the
confidence placed in him.
In short, the records of Carolian customers legitimately pre-
pared by Duncombe while at Carolian and retained by him,
perhaps by accident when he left Carolian, were of little use to
him, and I find that in any event were destroyed by him in the
summer of 1986, when their existence proved an embarrassment
to him and might assist Carolian to obtain an injunction.
After hearing evidence during a six-week trial, I am satisfied
that those customer lists were never used by Duncombe to the
prejudice of Carolian and were destroyed by him some six months
before the interlocutory injunction of Fitzpatrick J. of February 3,
1987. In retrospect, they could not have been even partial
justification for that injunction and, of course, are no justification
for the permanent injunction I am asked to give.
Carolian argues that while working for it, Duncombe became
familiar with its pricing policies for Sysview and in particular just
how much Carolian would reduce the list price if need be to make a
sale. In my view, Carolian’s pricing policy is not a trade secret. The
customers who purchased Sysview, or at lease some of them, would
have known what kind of reduction in price they were able to
negotiate. But even more telling is the certainty that if he had been
allowed to compete with Sysview it would quickly have become
apparent to Duncombe what Sysview price he had to beat if price
became important, to making a sale of Assess. Where price
becomes the obstacle to a sale, no matter what the product being
sold, the seller will soon learn what price of a competitor he must,
meet or beat.
Likewise, the function of Sysview and exactly what information
it could produce for a user is not a trade seeret. Such information
was advertised by Carolian and would be obvious to any user of it.
It seems to me that what Carolian is really saying is not that
Duncombe learned of special opportunities or secrets fromDELRINA CorP. V. TRIOLET SYSTEMS INC. 25
Carolian, but that in rewriting the source code for and redesigning
Sysview, Duncombe created advantages and secrets for Carolian
and having done so he was duty bound not to go out and compete
by using those advantages and alleged secrets.
That is a proposition I cannot accept. On this point, I agree with
the view expressed in Structural Dynamics Research Corp. v.
ineering Mechanics Research Corp., 401 F Supp. 1102 (E.D.
Mich. 1975), at p. 1111:
In Northern Office Micro Computers (PTY) Ltd. v. Rosenstein,
[1982] FS.R. (Sup. Ct. of S. Africa), the use an employee can make
of trade secrets he created for his employer is discussed by
Marais J., at pp. 138-140, as follows:
‘The dividing line between the use by an employee of his own skill,
knowledge and experience, and the use by him of his employer's trade secrets
is notoriously difficult to draw. An employer's trade secret may be no more
than the result of the application by an employee of his own skill, knowledge
and experience. But, if the employee was engaged to evolve the secret, it
remains the employer's trade secret for all that. The employee may not simply
copy it if, by copy, one means that literally. For example, if he has conducted a
confidential market survey for his erstwhile employer to establish what
demand, if any, exists in a particular area for a particular type of product, he
cannot simply copy the survey and hand it to his new employer. But non
constat that the employee may never again set out to establish the market
demand for that particular type of product: in the same area, Generally
speaking, he cannot be prevented from using his own skill and experience to
attain a particular result, merely because it is a result which he has achieved
before for a previous employer. I say, generally speaking, because one can
conceive of eases where the result sought to be achieved is so elusive that only
a solution of the kind which legend has it prompted Archimedes to say
“Eureka” will do, and the employee has been engaged specifically to find it. In
such a ease, it may well be that the employee who has evolved the solution
may have to refrain from solving it in the same way for a future employer,
To pass from the general to the particular. What is there in this particular
suite of programmes which gives it a quality of such confidentiality that
respondent should be restrained.
“from communicating all computer language instructions relating
exclusively to the accounting and administrative requirements of doctors
and dentists, whether in writing or otherwise, embodied in the suite of
programmes designed by respondent for the purposes of producing an
accounting system for doctors and dentists irrespective of the nature or26
CANADIAN PATENT REPORTER 47 GPR, (8d)
type of computer in conjunction with which such instruction may be
used?”
In my view, the evidence before me does not enable me to conclude that
what has gone into the development of this suite of programmes is of so
confidential a character that respondent should be restrained... . I
emphasise that I am not here referring to the copying of the suite of
programmes. That respondent. plainly cannot do. It is common cause that
much work, skill and time is needed to produce a suite of programmes of this
kind. If respondent were permitted simply to copy it, he would be unfairly
nullifying the advantage of the “long start” over anyone else to which
applicants are entitled. To that limited extent, the suite of programmes is, in
my opinion, a trade secret:
But it does not follow .. . that respondent may not again apply his mind to
the development of a suite of programmes to cater for the accounting and
financial needs of doctors and dentists, or that, if he does, he must wipe clean
from the slate of his memory (as if that: were possible) any recollection he may
have of the things which it seemed to him were appropriate for inclusion in
such a suite of programmes, or of appropriate formulae, or the like. To accept
the contrary view would halter respondent's use of his own training, skill and
experience to an unacceptable degree. This remains so whether he is
restrained permanently, or for a limited period of two years such as Mr. Dison
suggested. As Cross J. said in Printers and Finishers Ltd. . Holloway
[1964] 8 AN ER. 781 at 7868:
“The law will defeat its own object if it seeks to enforce in this field
standards which would be rejected by the ordinary man.”
In my view, Sysview, as rewritten and improved by Duncombe, is
not the inspired, elusive solution to some unrelenting, intractable
problem..relating to the performance monitoring of a HP3000
computer. If it were, then perhaps Duncombe could not have used
his skills and memory to solve that problem in the same way for his
own benefit or that of a new employer.
But the rewritten Sysview is nothing of the kind. Hewlett-
Packard so created the HP3000 that it stores the very information
{information as to the use being made of it) Sysview retrieves and
displays for its user. The creation of Sysview, Assess or any other
performance monitoring program for the HP3000 is more the
result of the style, technique, effort, and choice of the programmer
thi
an of inspiration or serendipity.
The rewritten Sysview, to the extent it is a trade secret, could
not be copied by Duncombe for his own use or that of a new
employer. Duncombe was, however, free to create Assess as he did
without copying Sysview, no matter how close Assess may be to
the rewritten Sysview he had created for Carolian, his former
employer.