Sundance Image Technology Inc and R9 Corporation v. Jon Cone and Inkjet.com

Holding:

In this action for copyright infringement, promissory fraud, trade libel, libel, and unfair business practices filed before the United States District Court for the Southern District of California, the jury issued a defense verdict in favor of Inkjet.com and against plaintiff R9 Corporation, and a plaintiff verdict against individual defendant Cone and in favor of Sundance Image Technology in the amount of $192,000.00 for compensatory damages.

Detailed Summary:

The designer of a software program for an ink-jet printer and cartridge systems and other software programs was also the owner of plaintiff ink company (Sundance Image Technology) and plaintiff software component company (R9 Corporation).  Both the designer and individual defendant entered into a joint partnership whereby the latter would sell or market the former’s ink product which he (designer) formulated.

However, the products eventually ran into a number of complaints with their buyers, resulting into a fall out of the partnership, and the parties going into their separate ways in conducting their own separate businesses.  One of the ventures later entered into by individual defendant was a website where he sought to address the concerns of consumers over the use of plaintiffs’ ink products. 

Plaintiff companies then filed this suit for copyright infringement, promissory fraud, trade libel, libel, and unfair business practices filed before the United States District Court for the Southern District of California, and asked for payment of $2,600,000.00 in lost profits, and an unspecified sum of money representing punitive damages.  Unfortunately for plaintiffs, all causes of action, except for trade libel and unfair competition, were ordered dismissed by the district court on summary judgment. 

On the remaining causes of action, plaintiffs alleged that individual defendant was maligning them and their owner through the latter’s website, but defendants asserted that they were just addressing a concern which actually existed. 

The jury issued a defense verdict in favor of Inkjet.com and against plaintiff R9 Corporation (software company), and a plaintiff verdict against individual defendant Cone and in favor of Sundance Image Technology (ink products company) in the amount of $192,000.00 for compensatory damages.  The jury also found that punitive damages should be awarded, but the parties agreed that the judge, rather than the jury, should be the one to adjudicate the amount to be awarded.

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