Xpertuniverse Inc. v. Cisco Systems, Inc.

597 F. App'x 630
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 21, 2015
Docket2014-1281
StatusUnpublished
Cited by5 cases

This text of 597 F. App'x 630 (Xpertuniverse Inc. v. Cisco Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Xpertuniverse Inc. v. Cisco Systems, Inc., 597 F. App'x 630 (Fed. Cir. 2015).

Opinion

PER CURIAM.

XpertUniverse Inc. (“XpertUniverse”) appeals a final judgment of the United States District Court for the District of Delaware granting judgment as a matter of law (“JMOL”) on its claim for fraudulent concealment, see XpertUniverse Inc. v. Cisco Sys., Inc., No. 1:09-cv-00157, 2013 WL 6118447 (D.Del. Nov. 20, 2013) (“JMOL Decision”), and summary judgment on its claims for breach of contract and trade secret misappropriation, see XpertUniverse Inc. v. Cisco Sys., Inc., No. 1:09-cv-00157, 2013 WL 867640 (D.Del. Mar. 8, 2013) (“Summary Judgment Decision ”). We affirm.

BACKGROUND

XpertUniverse developed expert-location software for corporate call centers. J.A. 1083-84. It asserts that its technology “broke down the walls of traditional call centers — where a fixed group of individuals with a fixed set of skills waited for calls — and allowed organizations to capitalize and share the knowledge of their employees, regardless of their role or location.” J.A. 6034. In the spring of 2004, XpertUniverse demonstrated its product at the annual “G Force” conference hosted by Genesys Telecommunications Laboratories, Inc. (“Genesys”). J.A. 1085. According to XpertUniverse, Genesys was “very, very impressed” with its product, J.A. 1086, and the two “companies were rapidly forming a mutually beneficial business partnership and were prepared to quickly go to market because [Genesys’] router was already integrated with [XpertUniv-erse’s] technology.” Br. of Plaintiff-Appellant at 15; see also J.A. 1087. In the summer of 2004, however, Laurent Philonenko, Genesys’ chief executive officer, left Genesys and became general manager of the Customer Contact Business Unit (“CCBU”) at Cisco Systems, Inc. (“Cisco”). Soon thereafter, XpertUniverse began working with Cisco to integrate its technology into Cisco’s routers. J.A. 1086-87.

*632 In August 2004, XpertUniverse and Cisco executed a non-disclosure agreement, J.A. 1087-88, and by April 2005, XpertUniverse had been admitted to Cisco’s Technology Developer Partner (“TDP”) program, J.A. 1073. Participants in the TDP program pay a small fee that entitles them to assistance from Cisco engineers in integrating their technology with Cisco products. J.A. 1613-14. In December 2005, John Hernandez, the director of product management at the CCBU, invited XpertUniverse to apply for Cisco’s Solution-sPlus program. J.A. 1191. Admission to the SolutionsPlus program was very important to XpertUniverse because it would allow Cisco’s “army of salespeople” to sell XpertUniverse’s product at full commission. J.A. 1190; see also J.A. 1335, 1337. Admission to the program would also allow XpertUniverse’s “product to be listed in Cisco’s catalog as a Cisco approved product.” J.A. 1190.

Cisco informed XpertUniverse that admission to the SolutionsPlus program was “VERY selective.” J.A. 5129. Furthermore, even if the SolutionsPlus Governance Council (the “Governance Council” or “Council”) approved a product, it still had to undergo a 90-day test period, after which Cisco could decide “in its sole discretion” whether to keep the product in the SolutionsPlus program for a two-year period. J.A. 5151.

Working with Elizabeth Eiss, XpertUniverse’s president, Balaji Sundara, a Cisco product manager, prepared XpertUniverse’s SolutionsPlus application. J.A. 1343. In April 2006, Sundara presented XpertUniverse’s application to the Governance Council. J.A. 1343-44. The Council, however, voted to deny the application, concluding that XpertUniverse’s platform appeared to be a “niche product” which was not likely to result in “horizontal revenue pull through.” J.A. 10948. The Governance Council was also concerned that Cisco’s sales force would have difficulty selling XpertUniverse’s technology. J.A. 11132; see also J.A. 1215.

Hernandez testified at trial that the “vast majority of companies” underwent “multiple reviews” by the Governance Council, and that he had been confident that the Council’s concerns about XpertUniverse’s technology could eventually be overcome. J.A. 1621; see also J.A. 1631. In order to allay the Council’s fear that XpertUniverse’s technology would not generate significant revenue for Cisco, Hernandez knew that he needed to secure a “lighthouse account,” or lead customer, for XpertUniverse’s product. J.A. 1631. Citi-Group Inc. (“CitiGroup”), which in May 2006 was close to beginning a joint pilot project with XpertUniverse and Cisco, J.A. 1350, 5085-86, could potentially provide such a lighthouse account, J.A. 1631. Likewise, XpertUniverse’s platform could potentially be used to supply “competency based routing” for FedEx Corporation (“FedEx”), a major Cisco client. J.A. 11065-68. Hernandez instructed Cisco’s CitiGroup team to put together a “business case” for admitting XpertUniverse to the SolutionsPlus program to take back to the Governance Council. J.A. 1631; see also J.A. 5085.

Hernandez also asked Eiss for assistance in responding to the Governance Council’s concern that Cisco’s sales staff would have difficulty selling XpertUniverse’s product. J.A. 11148-51. For two months, Hernandez and Eiss worked together to develop a presentation showing that Cisco’s own sales staff, as well as its “channel” partners, could effectively market XpertUniverse’s technology. 1 J.A. 11077; see also J.A. 11097, 11102-03.

*633 In the fall of 2006, Hernandez approached Carl Wiese, an influential member of the Governance Council. J.A. 11100; see also J.A. 1657 (explaining that Wiese was the “lead influeneer” on the Council). Hernandez explained to Wiese that both CitiGroup and FedEx could become lead customers for XpertUniverse’s technology, J.A. 11100; see also J.A. 1639-40. 2 He emphasized, moreover, that making XpertUniverse a SolutionsPlus partner could provide Cisco with significant revenue opportunities, both in the short and the long term. J.A. 1631-32, 1638 — 42, 11100. On October 6, 2006, Wiese emailed Hernandez, agreeing to support XpertUniverse’s admission to the SolutionsPlus program. J.A. 11100.

By December 2006, however, it became clear that Hernandez would be unable to secure a lead customer for XpertUniverse’s product. J.A. 1642. The FedEx project never materialized and the pilot project with CitiGroup “fell apart,” J.A. 1642, due to serious internal problems at CitiGroup, J.A. 1106; see also J.A. 1100-01. In January 2007, Hernandez called Victor Friedman, XpertUniverse’s founder, and informed him that he had “exhausted all possibilities,” J.A. 1643, and that it was “the end of the opportunity” for XpertU-niverse to be admitted to the SolutionsPlus program, J.A. 1642. Hernandez stated, however, that Cisco still wanted XpertU-niverse to participate in the TDP program, which would allow Cisco and XpertUniv-erse to “validate interoperability between [their] two solutions and jointly sell side by side in the market place.” J.A. 10953.

Cisco introduced its own expert location products in September 2008. J.A. 10199-200. Soon thereafter, XpertUniverse filed suit, asserting claims against Cisco for patent infringement, fraud, breach of the parties’ nondisclosure agreement, and trade secret misappropriation. J.A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
597 F. App'x 630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xpertuniverse-inc-v-cisco-systems-inc-cafc-2015.