Security hardware manufacturer Mercury Security Corporation recently filed a lawsuit against its longtime business partner Lenel, claiming that the company infringed upon its copyrights and breached a contract between the two firms.
In a series of contracts between the two companies between 2001 and 2010, Mercury says in the lawsuit that it provided Lenel with security system components for integration into the company’s systems.
As part of these contracts, Mercury says it also provided confidential information to Lenel regarding two firmware structures called "Simple ID Report" and "Extended ID Report," which "recognize and utilize a unique configuration of data."
Mercury claims in the lawsuit that Lenel’s new Universal I/O panels contain confidential information pertaining to these two firmware structures and that the sale of them is an infringement upon their copyrights and also constitutes a breach of a 2010 agreement between the firms.
"Upon information and belief, Lenel has promoted the Universal I/O panels as compatible with 2001 products, 2006 products and 2010 deliverables. Upon information and belief, Lenel used confidential materials it was provided by Mercury and/or reverse engineered the data streams, and in doing so, created code to recognize elements of the data streams that are exchanged between the Mercury I/O Panels and the Mercury controller. Thus, upon information and belief, Lenel has made an unauthorized direct copy of Simple ID Report, an unauthorized direct copy of the Extended ID Report, an unauthorized derivative work of the Simple ID Report and/or an unauthorized derivative work of the Extended ID Report," the lawsuit states.
Mercury is seeking damages from Lenel as a result of these alleged actions, as well as a temporary or preliminary enjoinment to prevent the company from selling the Universal I/O panels.
When reached for comment, Mercury CEO Frank Gasztonyi said that he could not discuss the case per the advice of his legal counsel. Ken Francis, vice president of sales and marketing for Lenel’s parent company UTC Fire & Security, said that they didn’t have a statement regarding the case as of press time Friday.