DisputeSoft was engaged as a neutral expert in February 2019 in the matter of Knowmadics Inc. v. Lisa Cinnamon and LDX Inc. in the Ontario Superior Court of Justice.

Knowmadics is an Internet of Things (IoT) company that provides a platform for military, law enforcement, and private security agencies to monitor, track, and coordinate multiple hardware devices and data feeds.

Knowmadics alleged that upon terminating her employment in May 2017, Lisa Cinnamon stole confidential information and source code related to Knowmadics’ SilverEye software and CASES mobile application to start a competing company offering similar data integration software. According to Cinnamon, she incorporated her own code, written prior to her employment with Knowmadics, when developing the SilverEye program, and incorporated the same code into the software she developed for her own company, LDX Inc.

Nature of Dispute

Knowmadics alleged that Cinnamon:

Breached a Subcontractor Agreement and Non-Disclosure Agreement, wherein Cinnamon agreed to restrictions on competitive conduct and unauthorized disclosure of confidential information, and LDX agreed to provide technical support to Knowmadics following Cinnamon’s departure.

Developed competing software products, FireCat and GhostCat, which infringed the copyright of Knowmadics’ SilverEye software and CASES mobile application.

Our Services

As a neutral software expert jointly engaged by the parties, DisputeSoft:

Conducted a literal code analysis using proprietary tools leveraged in our Code ACE™ service to compare the extent of any overlap or similarity between Knowmadics’ SilverEye and CASES software and LDX’s FireCat and GhostCat software.

Issued an expert report detailing our analyses and findings.

DisputeSoft found that the amount of copied source code, database schema, and database source code in the LDX software was sufficient to conclude that it was a derivative work. Following the release of our report, LDX hired an independent expert to determine (1) how much of the LDX software was derived from open source code, and (2) how much was derived from source code written by Cinnamon prior to her employment at Knowmadics. LDX’s independent expert concluded that the allegedly copied source code was likely not copied from Knowmadics’ software, but was available elsewhere as the result of Cinnamon’s incorporation of her code in prior applications and databases. Whether Cinnamon is permitted under the Copyright Act and her Subcontractor Agreement and Non-Disclosure Agreement to reuse her prior code is a question to be determined at the ongoing trial.

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