Jury Says Altair Engineering Owes MSC Adams Over $26 Million

Michigan Court finds that Altair took MSC secrets knowingly and with malice.

Recently, an Eastern District of Michigan Courtroom ruled that Altair Engineering knowingly took MSC Software trade secrets with malicious intent.

The prosecution claimed that Adams secrets had been used in Altair’s MotionSolve, a direct competitor of MSC’s product. In the end, the jurors ruled that these secrets not only included processes, but source code as well.

Altair now owes MSC over $26.1 million for the misappropriation of these secrets as well as for a breach of confidentiality which was made by two former MSC employees. These employees were not mentioned in the release. However, it is known that these former MSC employees now hold executive positions within Altair.

In addition to the aforementioned rulings, the jury also found that these two former employees breached their non-solicitation agreement with MSC Software and that Altair was purposefully seeking to interfere with said agreement.

In doing so, MSC was awarded $425,000 in additional recompense. As a result, Altair owes a grand total of around $26.5 million dollars. The two employees will also owe their previous employer a substantial sum.

Dominic Gallello, MSC Software President said, “We welcome vigorous competition in the market. Every company has a right to innovate, but no company should be allowed to misappropriate a competitor’s intellectual property. We continue to make significant investments in the Adams technology to serve our customers and maintain our market leading position.”

The six-week trial ended with two days of jury deliberation. The lawsuit was originally served in 2007.

Source MSC Software, Crain’s Detroit Business

Written by

Shawn Wasserman

For over 10 years, Shawn Wasserman has informed, inspired and engaged the engineering community through online content. As a senior writer at WTWH media, he produces branded content to help engineers streamline their operations via new tools, technologies and software. While a senior editor at Engineering.com, Shawn wrote stories about CAE, simulation, PLM, CAD, IoT, AI and more. During his time as the blog manager at Ansys, Shawn produced content featuring stories, tips, tricks and interesting use cases for CAE technologies. Shawn holds a master’s degree in Bioengineering from the University of Guelph and an undergraduate degree in Chemical Engineering from the University of Waterloo.