Zoho slaps trade secret misappropriation case against Freshworks

By: |
Published: March 29, 2020 4:00:10 AM

Though both Zoho and Freshworks have genesis from Chennai, the companies have global operations headquartered in the US.

Zoho has slapped a complaint of trade secret misappropriation against Freshworks, seeking relief under violation of defense of trade secrets ActZoho has slapped a complaint of trade secret misappropriation against Freshworks, seeking relief under violation of defense of trade secrets Act

Sridhar Vembu-promoted software as a service (SaaS) major Zoho has filed a case against Freshworks—a Unicorn helmed by Girish Mathrubootham and backed by fund houses such as Sequoia Capital and CapitalG—in a US court, alleging stealing of its trade secrets and willfully converting its confidential and proprietary information to gain advantage in software development and sales.

Zoho in the complaint filed before the United States District Court, Northern District of California, on March 17, 2020, alleges that from its inception by two former Zoho employees, Girish Mathrubootham and Shan Krishnasamy, Freshworks has built its business up on theft and misuse of Zoho’s business information.

Zoho has slapped a complaint of trade secret misappropriation against Freshworks, seeking relief under violation of defense of trade secrets Act and California uniform trade secrets Act, and for international interference with prospective economic relations, conversion and unjust enrichment. Though both Zoho and Freshworks have genesis from Chennai, the companies have global operations headquartered in the US.

According to the complaint, Freshworks secured initial funding through use of Zoho’s non-public financial information and since engaged in a systematic practice of poaching Zoho’s employees besides using Zoho’s confidential and competitive marketing information, planning press releases to coincide with Zoho’s undisclosed product launch dates and pressurising Zoho’s business partners to divulge Zoho confidential customer information.

From 2001 to 2010, both Mathrubootham and Krishnasamy worked with Zoho. In October 2010, both departed Zoho to form Freshworks.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Power ministry seeks Rs 3 lakh crore from finance commission for new scheme
2Attention Zoom users! Update your app now if you want to keep using it
3ESAF Small Finance Bank net profit up 111% in FY 20