VICKI MILES-LaGRANGE, Chief District Judge.
Before the Court is Defendant Spectrum Tracer Services, LLC's ("STS") Motion for Partial Summary Judgment and Supporting Brief, filed September 21, 2015. On October 5, 2015, plaintiff, Core Laboratories LP ("Core"), responded, and on October 8, 2015, STS replied. Based on the parties' submissions, the Court makes its determination.
On June 10, 2015, Core filed its Fourth Amended Complaint alleging that STS and defendants Steve Faurot ("Faurot")
Core
In 1985, Core's predecessor, ProTechnics, had a new O&E Manual prepared by a company called W.H. Henken. Larry Stephenson ("Stephenson") drafted ProTechnics' O&E Manual on behalf of W.H. Henken. In 1996, Stephenson began working for Core, and in 1997, Core acquired ProTechnics. Stephenson continued to be the primary draftsperson for all revisions to the ProTechnics' O&E Manual at Core. Core's 2005 O&E Manual was a result of the continued revisions to the ProTechnics' O&E Manuel by Stephenson.
When STS was formed, STS employee Ken Snow ("Snow") was tasked with creating an O&E Manual for STS. Snow testified, in his deposition, that he requested several competitors' O&E Manual through the Freedom of Information Act, including Core's 2005 Manual. Snow admitted that he copied a majority of Core's 2005 Manual in creating STS's O&E Manual because Core's 2005 Manual met the criteria for the regulatory requirements and contained the best information. See Core's Resp. Exhibit 5, Deposition of Ken Snow p. 20 ln. 7-20. Core concedes that its 2005 Manual did not bear a copyright symbol; however, Core alleges its 2005 Manual contains other information identifying Core as the author of the manual. Further, it is undisputed that Core did not copyright its 2005 Manual until after it discovered that STS had copied it. See Mot. for Summ. J. at 4 ¶ 15 (citing Exhibit F, Deposition of Tom Hampton p. 189 ln. 17-22.)
Core also alleges that STS misappropriated its Software Applications, which Core considers trade secrets.
"Summary judgment is appropriate if the record shows that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. The moving party is entitled to summary judgment where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party. When applying this standard, [the Court] examines the record and reasonable inferences drawn therefrom in the light most favorable to the non-moving party." 19 Solid Waste Dep't Mechs. v. City of Albuquerque, 156 F.3d 1068, 1071-72 (10th Cir. 1998) (internal citations and quotations omitted).
"Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment. Furthermore, the non-movant has a burden of doing more than simply showing there is some metaphysical doubt as to the material facts. Rather, the relevant inquiry is whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law." Neustrom v. Union Pac. R.R. Co., 156 F.3d 1057, 1066 (10th Cir. 1998) (internal citations and quotations omitted).
In order for Core to prove copyright infringement, it must show (1) it owns a valid copyright, and (2) STS copied constituent elements of Core's 2005 Manual that are original to Core.
The Court has carefully reviewed the parties' briefs and evidentiary submissions. Viewing the evidence in the light most favorable to Core and viewing all reasonable inferences in Core's favor, as the Court must when addressing a motion for summary judgment, the Court finds that Core has presented sufficient evidence to create a genuine issue of material fact as to whether its entire 2005 Manual is entitled to copyright protection. While the Court acknowledges STS's contention that some parts of Core's 2005 Manual may not be Core's original work and, therefore, not entitled to copyright protection, the Court finds that STS did in fact copy Core's 2005 Manual which Core alleges contains, if not all, sections of its original work. A reasonable jury could find that those sections that Core alleges is its original work, as well as the entire 2005 Manual, is entitled to copyright protection. Further, Core has presented testimony from Michael Flecker, president of Core's ProTechnics Division, that Stephenson did not use any other O&E Manuals in drafting Core's 2005 Manual (see Core's Resp. Exhibit 4, Deposition of Michael Flecker p.280 ln.15-22) and an affidavit from Stephenson declaring that he did not copy any of his previous work from Radiation Engineering Consultants in drafting the initial O&E Manual for ProTechnics and, further, that after leaving ProTechnics (and being employed at Core), he continued to make revisions and draft entire new sections and subsections, creating Core's 2005 Manual. The Court finds this evidence is sufficient to create a genuine issue of material fact as to whether Core authored its 2005 Manual and, therefore, STS is not entitled to summary judgment as to whether Core's 2005 Manual is entitled to copyright protection.
STS contends that Core's Spreadsheets
Global Water Grp., Inc. v. Atchley, 244 S.W.3d 924, 928 (Tex. App. 2008) (citing In re Bass, 113 S.W.3d 735, 739 (Tex. 2003)). "The existence of a trade secret is properly considered a question of fact to be decided by the judge or jury as fact-finder." Gen. Universal Sys., Inc. v. Lee, 379 F.3d 131, 150 (5th Cir. 2004).
STS contends that Core's Spreadsheets were only used as a template to create paper versions of Core's electronic forms. STS also asserts that the forms did not contain any information that was not commonly known throughout the entire industry, that the forms generated by Core's Spreadsheets were widely used among Core's field technicians, and that the forms were accessible to be printed for employees, customers, and regulatory agencies. Further, STS contends that Core has provided no evidence of the dollar amount expended to develop its Spreadsheets and that the Spreadsheets were not overly complicated and could have been duplicated within one week. Core asserts that STS is trying to make a distinction between its digital Spreadsheets (software applications) and the hard-copies of the Spreadsheets. Core contends there is no distinction and both the digital Spreadsheets and the hard-copies of the Spreadsheets were trade secrets and, therefore, there are genuine issues of material fact as to whether its Spreadsheets are trade secrets, precluding summary judgment on this issue.
The Court has carefully reviewed the parties' briefs and evidentiary submissions. Viewing the evidence in the light most favorable to Core and viewing all reasonable inferences in Core's favor, as the Court must when addressing a motion for summary judgment, the Court finds that Core has presented sufficient evidence to create a genuine issue of material fact as to whether its Spreadsheets are trade secrets. STS admits that Core's Spreadsheets were provided to STS by Bryson and Daniken, former employees of Core. See Mot. for Summ. J. at 9 ¶¶ 37 & 39. STS provided no evidence demonstrating that Core's Spreadsheets would have been available to use by STS if not provided by Bryson and Daniken. So while the information generated on the forms may have been information known in the industry, Core's Spreadsheets were not readily available to its competitors in the business.
Further, STS acknowledged Core's Spreadsheets contained some complex functions, and that Core took measures to secure its digital Spreadsheets, requiring login access by the field representatives. See Mot. for Summ. J. at 23 (citing Exhibit L, Core's Answers to Faurot's First Set of Interrogatories, no. 5). Core also provided deposition testimony from Will Williams, who testified it took maybe six months to build and to convert the paper forms (Core was using in the beginning) to the Field Audit File and about seven or eight days to create the PPWOKC file. See Resp. Exhibit 6, Deposition Testimony of Will Williams, p. 52 ln.8-13 and p. 122 ln.21-24. Further, Core has previously provided the Court a digital copy of its Field Paperwork Files which includes copies of Core's pricing policies. See Docket No. 132, Plaintiff's Emergency Motion to Sever, to Lift Stay, and for Preliminary Injunction, Exhibit 3 — CD. The Court finds the evidence presented creates a genuine issue of material fact as to whether Core's Spreadsheets are trade secrets, and, therefore, STS's motion for summary judgment should be denied. Further, since the Court finds that STS's motion for summary judgment should be denied as to the issue of misappropriation of trade secrets, the Court finds that STS's motion for summary judgment as to whether STS is liable under the Texas Theft Liability Act should be denied as well.
Accordingly, for the reasons set forth above, the Court DENIES STS's Motion for Partial Summary Judgment and Supporting Brief [docket no. 291].