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$50M Award in Trade-Secrets Case

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laticretelogoBETHANY - A Bethany manufacturer has been socked with a landmark penalty in a trade-secrets case.

On May 28 a Waterbury judge ordered Laticrete International Inc. to pay $50.5 million to Dur-A-Flex Inc. of East Hartford for allegedly copying the latter's process for developing colored sand for use in tile grout. Read More

Following an eight-week trial, a jury ruled May 18 that Laticrete, which produces installation systems for stone and ceramic tile, had violated the Connecticut Uniform Trade Secrets Act and breached a confidentiality agreement with Dur-A-Flex Inc. Ten days later Waterbury Judge Dennis Eveleigh ruled that Dur-A-Flex should be awarded additional compensation for the continued use of its process and to pay its lawyers.

duraflex_logoAccording to court documents, Dur-A-Flex had been a supplier of colored sand to Laticrete for a number of years, and Laticrete signed an agreement to maintain the confidentiality of Dur-A-Flex's trade secrets and manufacturing process.

But Laticrete eventually ceased doing business with Dur-A-Flex and instead began manufacturing an identical product, according to court documents.

Laticrete Chairman and CEO David A. Rothberg told the Hartford Business Journal that his company was "extremely disappointed," with the verdict and planned to appeal the decision "vigorously".

 
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Posted on Thursday, 01 December 2011

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