This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Court Ruling A Wake-up Call For Investors

SYDNEY, Feb. 8, 2013 /PRNewswire/ -- Corrs Chambers Westgarth has successfully advised financial technology developer Zomojo Pty Ltd in a landmark intellectual property matter against its former co-managing director and head of Research & Development, Matthew Hurd.

The Federal Court of Australia delivered an emphatic judgement in favour of Zomojo. The Court found that Mr. Hurd had breached his legal and ethical obligations by taking and using Zomojo's sophisticated high speed market trading technology and confidential information, which he then used to establish competing products under the brand "Zeptonics", with funds invested by third parties.

Australian-owned Zomojo invested significant resources in developing sophisticated high speed proprietary trading devices and technologies for the equity and derivatives markets. With trading speeds of less than 10 microseconds, Zomojo's devices rank among the fastest in the world.

"This is global market-leading technology," said Corrs Partner Janet Whiting, who led the case against Hurd. "It's a warning for investors to do their due diligence on claims of IP ownership."

Third parties invested in Mr. Hurd's business which was substantially about exploiting Zomojo's intellectual property. Zomojo will now actively seek the return of all of its trading devices. Zeptonics' clients who have been operating the Zomojo owned technology will need to remove the relevant hardware and return it.

"While this will cause inconvenience to these parties, it is the unfortunate unavoidable consequence of Mr. Hurd and Zeptonics selling technology they did not own," said Ms. Whiting.

The court described Mr. Hurd's conduct as 'dishonest', 'reprehensible', and nothing more than 'a flagrant and deplorable attempt' to obtain benefits for himself which belonged to Zomojo. The Court found that Zeptonics' trading devices known as the 'OptiCast', 'ZeptoCast', 'ZeptoLink', 'ZeptoNIC', 'ZeptoAccess KRX' and 'Crosswise ATS' are rightfully the property of Zomojo.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs