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Policy

ACS And Leadscope Settle Case

Trade Secrets: Society to pay $22.6 million to software firm to settle and resolve all claims in case that spanned a decade

by Susan R. Morrissey
October 5, 2012

The American Chemical Society and Leadscope Inc. and its three founders have reached a settlement in their long-running intellectual property dispute. ACS, which publishes C&EN, has agreed to pay Leadscope and its three founders $22.6 million to settle and resolve all claims associated with American Chemical Society v. Leadscope.

The settlement announced today also makes clear that all parties agree that “all rights, title, interest, and ownership in Leadscope software and products that were subject to the litigation belong exclusively to Leadscope.”

“Each party is pleased to put an end to this long-standing dispute,” say ACS, Leadscope, and the company’s founders in a joint statement.

The case involved an initial allegation by ACS that Leadscope principals had misappropriated ACS intellectual property in order to develop a software product to compete with the society’s Chemical Abstracts Service. Leadscope then countersued, seeking damages for unfair competition, tortious interference with business relations, deceptive trade practices, and defamation.

A jury found in favor of Leadscope in 2008 on three of its claims, and an appellate court upheld the verdict in 2010. The case ended before the Ohio Supreme Court, which issued its decision last month. The top state court partially reversed the lower court ruling—overturning the defamation finding, but leaving in place the finding of unfair competition and tortious interference.

ACS will be able to cover the settlement with “a portion of its cash and investments,” the society says in a statement. “This payment will not impact the society’s member dues; extensive products, programs, and services advancing chemistry; staffing levels; or the ability of ACS to achieve its mission,” ACS says.

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