SecureInfo Corp. v. Telos Corp.

387 F. Supp. 2d 593, 2005 U.S. Dist. LEXIS 21228, 2005 WL 2218424
CourtDistrict Court, E.D. Virginia
DecidedSeptember 9, 2005
DocketCiv.A. 05-505
StatusPublished
Cited by19 cases

This text of 387 F. Supp. 2d 593 (SecureInfo Corp. v. Telos Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SecureInfo Corp. v. Telos Corp., 387 F. Supp. 2d 593, 2005 U.S. Dist. LEXIS 21228, 2005 WL 2218424 (E.D. Va. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

LEE, District Judge.

THIS MATTER is before the Court on Defendants Telos Corporation (“Telos”), Xacta Corporation (“Xacta”), John B. Wood (“Mr.Wood”), Richard P. Tracy (“Mr.Tracy”), and David J. Wilson’s (“Mr.Wilson”) (collectively “Telos Defendants”) Motion to Dismiss Counts I-IV and VI-XIII 1 of the Amended Complaint, as well as Defendant Lon J. Berman’s (“Mr.Berman”) Motion to Dismiss Counts IV-IX of Plaintiffs Amended Complaint. The mammoth Amended Complaint is 114 pages long and contains 619 paragraphs, hardly the model of brevity that the Federal Rules of Civil Procedure contemplate. See Fed. R. Civ. P. 8(e) (“Each averment of a pleading shall be simple, concise, and direct.”). Plaintiff Securelnfo Corporation (“Securelnfo,” “Plantiff’) alleges that the Telos Defendants, acting in concert with Mr. Berman, obtained a copy of Secureln-fo’s software in violation of licensing agreements entered into between Mr. Berman’s company, BAI, and the plaintiff to conduct a competitive analysis of Securelnfo’s product. The issues before the Court are

(1) whether to dismiss Plaintiffs claims under the Computer Fraud and Abuse Act, 18 U.S.C.A. § 1030 (West 2000 & Supp. 2005) pursuant to Federal Rule of Civil Procedure 12(b)(6) because Plaintiff does not allege that Mr. Wilson, Xacta, and Telos had “unauthorized access” to the BAI server or that they “exceeded authorized access” within the meaning of the statute;
(2) whether to dismiss the plaintiffs claims under the Copyright Act, 17 U.S.C.A. § 501 (West 2005) because the forms allegedly copied by the Telos Defendants were not copyrightable elements of Securelnfo’s Software or because the cop *598 ied materials do not comprise a substantial part of Securelnfo’s program considered as a whole;
(3) whether to dismiss the plaintiffs claims under the Racketeer Influenced Corrupt Practices Act, 18 U.S.CA. § 1961 (West 2000 & Supp.2005) (hereinafter, “RICO,” “RICO statute”) because there is no pattern of racketeering activity within the meaning of the RICO statute, and the Telos Defendants did not control the alleged enterprise;
(4) whether to dismiss Plaintiffs fraud claim against Mr. Berman because the fraud claim flows out of a breach of the license agreements, not an independent tort, and is barred by Virginia law, or whether to dismiss Plaintiffs fraud claim because it alleges no damages resulting from Mr. Berman’s alleged fraud;
(5) whether to dismiss Counts VI and IX of Plaintiffs Amended Complaint because an entity can neither conspire nor combine with an agent under Virginia law;
(6) whether to dismiss the common law tortious interference with contract or business relationship claim because an entity or person cannot interfere with its, his, or her own contract; and
(7) whether to dismiss (a) Counts X Virginia Computer Crimes Act, Va.Code Ann. § 18.2-152.3 (Miehie 2004 & Supp.2005), (b) XII (common law trespass to chattels), and (c) XIII (common law detinue) of Plaintiffs Amended Complaint because they are preempted by the Copyright Act or patently without merit.

The Court

(1)grants Defendants’ motion to dismiss the Computer Fraud and Abuse Act claims because Plaintiff does not properly allege that Defendants Mr. Wilson, Telos, and Xacta had “unauthorized access” to the BAI server or accessed the server in “excess of authority” within the meaning of the statute;
(2) denies Defendants’ motion to dismiss the Copyright Act claim as to the QuickS-tart Guide because it is independently copyrighted and Plaintiff alleges that it was copied, satisfying the requirements to state a claim for copyright infringement pursuant to the Copyright Act, and the Court denies the defendants’ motion to dismiss the copyright claim as to the other outputs of RMS because, taking the plaintiffs allegations as true, as required by Federal Rule of Civil Procedure 12(b)(6), the forms are protected by the Copyright Act;
(3) grants Defendants’ motion to dismiss the RICO claim because Plaintiff does not establish a “pattern of racketeering activity” as required by RICO, 18 U.S.C.A. § 1962(c);
(4) grants Defendant Mr. Berman’s motion to dismiss the fraud and deceit claim against him because, regardless of whether the claim sounds in tort or contract, Secu-relnfo failed to allege actual damages flowing from the fraud, as required by Virginia law, see, e.g., Community Bank v. Wright, 221 Va. 172, 267 S.E.2d 158, 160 (1980);
(5) grants Defendants’ motion to dismiss Counts VI and IX of Plaintiffs Amended Complaint because an entity can neither conspire nor combine with an agent under Virginia law, and Plaintiffs factual allegations establish that Mr. Berman was an agent of the Telos Defendants, Lewin v. Cooke, 95 F.Supp.2d 513, 524-25 (E.D.Va.2000);
(6) grants Defendant’s motion to dismiss the common law tortious interference claim because a person or entity cannot intentionally interfere with his, her, or its own contract, Fox v. Deese, 234 Va. 412, 362 S.E.2d 699, 708 (1987);
*599 (7)(a) grants Defendants’ motion to dismiss the Virginia Computer Crimes Act claim because it is preempted by the Copyright Act, Rosciszewski v. Arete Assocs., Inc., 1 F.3d 225, 229 (4th Cir.1993);
(7)(b) grants Defendants’ motion to dismiss the common law trespass to chattels claim because Plaintiff does not allege that the chattel itself was impaired by the trespass, America Online, Inc. v. IMS, 24 F.Supp.2d 548, 550 (E.D.Va.1998); and
(7)(c) denies Defendants? motion to dismiss the common law detinue claim because it is not preempted by the Copyright Act, and because Plaintiff states a claim for detinue under Virginia law, Talley v. Drumheller, 135 Va. 186, 115 S.E. 517 (1923).

I. BACKGROUND

Basic Information About The Risk Management System

Plaintiff Securelnfo Corporation (“Secu-relnfo,” “Plaintiff’) provides products and services to customers seeking to ensure information security compliance, managed cyber security operations, and risk management. Securelnfo created the “Risk Management System” (“RMS”) to allow organizations to integrate information security compliance requirements and test plans, using a workflow tool tailored for the risk assessment process.

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Cite This Page — Counsel Stack

Bluebook (online)
387 F. Supp. 2d 593, 2005 U.S. Dist. LEXIS 21228, 2005 WL 2218424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/secureinfo-corp-v-telos-corp-vaed-2005.