Cree, Inc. v. Bain
Cree, Inc. v. Bain
2015 WL 12911774 (M.D.N.C. 2015)
July 13, 2015

Eagles, Catherine C.,  United States District Judge

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Forensic Examination
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Summary
The Court granted a temporary restraining order to Cree, Inc., enjoining Defendant Timothy Bain from using, retaining, disseminating, copying, or storing any of the information emailed by Bain from his Cree-assigned email account to any outside email account. The Court also ordered Bain to deliver to Cree's forensics expert any personal computers, laptops, electronic tablets, or other devices owned by him, and to provide Cree and the forensics expert with the password and account access information necessary to access his email accounts.
CREE, INC., Plaintiff,
v.
Timothy BAIN, Defendant
1:15–CV–547
United States District Court, M.D. North Carolina
Signed July 13, 2015
Eagles, Catherine C., United States District Judge

TEMPORARY RESTRAINING ORDER

*1 This matter is before the Court on plaintiff's motion for a temporary restraining order. The Court has read and considered the Complaint, the motion and supplement, the Affidavits of Peter Flack, Simon Wood and Joshua Worthington, and the Certification of Plaintiff's counsel, Richard L. Farley, regarding notice to the adverse party. For purposes of the pending motions, the Court finds:
1. Plaintiff Cree, Inc., is a corporation organized under the laws of the state of North Carolina, with its principal place of business in Durham, Durham County, North Carolina.
2. Defendant Timothy Bain is a resident of Durham, Durham County, North Carolina.
3. This is an action for, among other things, violations of the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, and related claims under the laws of North Carolina. This Court therefore has jurisdiction under 28 U.S.C. §§ 1331 and 1367.
4. Venue for this action is proper in this district and division pursuant to 28 U.S.C. § 1391(b) because all parties reside in this district and because a substantial part of the events giving rise to this action occurred in this district.
5. Cree is a manufacturer in the field of semi-conductor products for power and radio-frequency (“RF”) applications used in the manufacture of telecommunications, satellite communication systems, radar and similar electric systems. Cree sells its RF semi-conductors to manufacturers of such systems and system components of such systems throughout the United States and the world.
6. Cree's production testing of its RF semi-conductor products is computer controlled, based upon source code (“Test Source Code”) and related data files (“Test Data Files”) that are unique to each product being tested. Cree's Test Source Code and the Test Data Files and production test process are not generally known to its competitors, and are not readily ascertainable through independent development or reverse engineering by persons who can obtain economic value from its disclosure or use.
7. The Test Source Code and Test Data Files used by Cree in its production test process are proprietary to and trade secrets of Cree and are highly confidential and sensitive, and disclosure of such information to Cree's competitors or to its customers would cause immediate and irreparable harm to Cree.
8. Mr. Bain was employed by Greene Resources, Inc., which provides temporary services for Cree's manufacturing facilities. Mr. Bain was engaged by Cree as a Production Operator in Cree's Power and RF Division. As part of his employment, Bain was provided a Cree-assigned email address Thomas_Bain@cree.com, for purposes of communication of company information, human resources information, and related specific or individual information concerning Mr. Bain's employment or Plaintiff and its business in general. Bain's e-mail was neither relevant nor necessary to the performance of his job duties as a Production Operator.
9. At some time before June 26, 2015, Mr. Bain, without authorization and in excess of his authority, used his Cree e-mail account to e-mail large attachments of files and documents to at least three (3) outside e-mail addresses, tbain@inbox.com, tsbain@gmx.com and calist3@care2.com and that such transfer: (a) included certain Test Source Code, Test Data Files and parts numbers for the testing machine; and (b) was a violation of Cree's confidentiality policies, a violation of the Code of Conduct and of the confidentiality provisions of the Handbook, and a misappropriation of Cree's trade secrets and confidential information.
*2 10. The Cree computers from which Mr. Bain accessed and transferred the information was used by Cree in interstate commerce and affecting interstate commerce, and are therefore protected computers as defined by the Computer Fraud and Abuse Act (“CFAA”) 18 U.S.C. § 1030.
11. Mr. Bain obtained information from Cree's protected computer(s) by intentionally accessing Plaintiff's computer(s) and data without authorization, or by exceeding his authorization in doing so and Cree has suffered loss in excess of $5,000.00 by reason of Mr. Bain's conduct.
12. Cree has shown a likelihood of success on the merits and will suffer immediate irreparable harm unless injunctive relief is issued by the Court enjoining Mr. Bain from using, retaining, disseminating, copying or storing any of the information emailed by Mr. Bain from his Cree-assigned e-mail account to any outside e-mail account, including but not limited to tbain@inbox.comtsbain@gmx.com and calist3@care2.com.
13. Without injunctive relief, Mr. Bain's continued misappropriation of Cree's confidential and proprietary information will damage Cree's business because disclosure would allow Cree's competitors to replicate Cree's production test process. The protection of Cree's proprietary information is a legitimate protectable interest that will be irreparably damaged if not protected by injunctive relief. The immediate injunctive relief is reasonably necessary to protect Cree's rights until the controversy between Cree and Mr. Bain can be determined.
14. Notice to Mr. Bain before entry of this order is not required due to the potential immediate and irreparable harm to Cree that could have occurred between the notice of hearing and the entry of this Order.
NOW, THEREFORE, IT IS ORDERED that Plaintiff Cree's motion for a temporary restraining order and for injunctive relief is GRANTED and:
1. IT IS ORDERED that Mr. Bain and all persons in active concert or participation with him and with notice hereof are prohibited from:
(a) copying, duplicating or deleting any emails, files or other information e-mailed by Bain from his Cree-assigned e-mail address to any other outside e-mail address, including but not limited to tbain@inbox.comtsbain@gmx.com and calist3@care2.com, or otherwise misappropriated by Bain; and
(b) publishing, distributing, transferring, forwarding or otherwise disclosing any of the emails, files or other information that he misappropriated from Cree, whether by e-mail or otherwise.
2. IT IS FURTHER ORDERED that Mr. Bain, and all persons in active concert or participation with him with notice hereof, shall immediately deliver to Cree's forensics expert, Guardian Digital Forensics (“Guardian”), or a representative thereof, 5510 Six Forks Road, Suite 150, Raleigh, North Carolina, 919–868–6291, every personal computer, laptop computer, electronic tablet, personal information device or any other device owned by him or to which he has access to or from which he has accessed the information forwarded to himself from Cree or any other electronic information belonging to Cree, for the purpose of allowing Guardian to conduct a forensic examination on behalf of Cree. Mr. Bain or his representative may be present for the examination, so long as they do not disrupt the examination.
*3 3. IT IS FURTHER ORDERED that after such forensic examination under the supervision of Cree's forensic expert and identification of Cree data, information, and documents, Guardian is authorized to forensically delete and destroy, from any and all electronic devices delivered by him, and from any server on which such information is or may be stored, every e-mail, and all data, documents, and information (and all copies thereof) that he e-mailed from Cree or otherwise misappropriated from Cree, so long as Guardian maintains an electronic copy of any deleted data, documents, and information.
4. IT IS FURTHER ORDERED that Mr. Bain and all persons in active concert or participation with him with notice hereof provide to Cree and Guardian the password and account access information necessary to access his e-mail accounts, tbain@inbox.comtsbain@gmx.com and calist3@care2.com and any other e-mail account to which he has had access since May 1, 2014, and allowing Cree and Guardian to access such accounts.
5. The Court shall hold a hearing on Plaintiff's motion for preliminary injunction in the United States District Court, 324 W. Market Street, Greensboro, North Carolina, Courtroom 3, at 2:00 p.m. on Friday, July 24, 2015.
6. This Temporary Restraining Order shall remain in full force and effect until such time as this matter is heard on Plaintiff's Motion for Preliminary Injunction, or the 27th day of July, 2015, whichever shall first occur.
7. Plaintiff shall give security in the sum of $5,000.00 for the issuance of this Temporary Restraining Order.
ISSUED at 3:30 o'clock, p.m. on this the 13th day of July, 2015