Oracle's Passlogix Faces Lawsuit Over Alleged IP Theft

2FA Technology LLC, a Texas based maker of identity management technologies, has filed a federal lawsuit charging Oracle and former partner and current subsidiary Passlogix with conspiracy and corporate theft.The lawsuit contends that Passlogix and its top management stole millions of dollars worth of corporate trade secrets and intellectual property from 2FA, and that since […]

2FA Technology LLC, a Texas based maker of identity management technologies, has filed a federal lawsuit charging Oracle and former partner and current subsidiary Passlogix with conspiracy and corporate theft.

The lawsuit contends that Passlogix and its top management stole millions of dollars worth of corporate trade secrets and intellectual property from 2FA, and that since buying Passlogix, Oracle has continued to sell the technology despite knowing about 2FA's concerns.

The suit alleges that Passlogix used an illegally obtained "storehouse" of material from 2FA to develop new software components for Passlogix products as well as for Oracle products.

In its complaint, 2FA claimed that its technology was used in Passlogix products that were rebranded and sold to Oracle, which it turn sold it as part of its own identity management products suite.

2FA is seeking punitive damages and $110 million in compensatory damages from Oracle for conspiracy, aiding and abetting copyright theft and unjust enrichment, and a litany of other charges.

In a brief e-mailed statement, an Oracle spokeswoman called the allegations against the company baseless. "Oracle and Passlogix deny 2FA's baseless allegations. We're confident that the litigation will expose their complete lack of merit."

[Source]