Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 1 of 26
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`
`
`John M. Desmarais (SBN 320875)
`DESMARAIS LLP
`101 California Street
`San Francisco, CA 94111
`(415) 573-1900
`
`Tamir Packin (SBN 317249)
`Carson Olsheski (pro hac vice pending)
`DESMARAIS LLP
`230 Park Avenue
`New York, NY 10169
`212-351-3400
`
`Attorneys for Plaintiffs
`
`
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
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`
`
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`CISCO SYSTEMS, INC., a California
`Corporation, CISCO TECHNOLOGY, INC., a
`California Corporation
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`
`
`
`Plaintiffs,
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`
`v.
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`WILSON CHUNG, JAMES HE, AND JEDD
`WILLIAMS, individuals
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`
`Defendants.
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`
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`Case No. _________________________
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`JURY TRIAL DEMANDED
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`COMPLAINT FOR TRADE SECRET MISAPPROPRIATION
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`Plaintiffs Cisco Systems, Inc. and Cisco Technology, Inc. (collectively “Cisco”), for their
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`Complaint against Defendants Wilson Chung (“Dr. Chung”), James He (“Mr. He”), and Jedd Williams
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`(“Mr. Williams”) hereby alleges as follows:
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`Introduction
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`1.
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`This is an action for trade secret misappropriation. Cisco has invested significant
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`resources to design, build, and sell its robust unified communications platform, which includes video
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`conferencing software and collaboration endpoints. Cisco’s endpoint hardware includes video
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`endpoints, telepresence units, all-in-one video collaboration systems, integrated collaboration room
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 2 of 26
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`systems, VoIP and video phones, microphones, cameras, speakers, and headsets. The field of unified
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`communications is highly competitive and characterized by rapid innovation.
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`2.
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`Cisco also has made substantial and significant investments in developing its routes to
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`market for its collaboration products and services, through extensive engagement of partner, customer,
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`and industry connections by its global sales force. Cisco’s global sales force relies upon proprietary
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`information, such as customer lists, pricing models, and forecasts to develop Cisco’s go-to-market and
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`business development strategies.
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`3.
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`Cisco has uncovered evidence that Dr. Chung and Mr. He, two former high-level
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`engineers in Cisco’s Unified Communications Technology Group, downloaded thousands of Cisco’s
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`highly confidential and proprietary documents (“Cisco Confidential Materials”) relating to the design,
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`manufacture, pricing, and market opportunities for both current and unreleased products immediately
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`preceding their departure for a competitor of Cisco. Dr. Chung undertook efforts over a period of
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`weeks preceding his departure to exfiltrate Cisco Confidential Materials to removable hard drives,
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`personal email, cloud storage, and to the competitor’s internal intranet, and then used Cisco
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`Confidential Materials while at the competitor. When confronted with evidence of his
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`misappropriation, Dr. Chung destroyed evidence to conceal his actions.
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`4.
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`Mr. He joined the same competitor after being recruited by Mr. Chung. Prior to his
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`departure, Mr. He copied thousands of files containing Cisco Confidential Materials to an external
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`hard drive. These documents also related to the design, manufacture, pricing, and market opportunities
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`for both current and unreleased products. Cisco has recovered Mr. He’s hard drive, and learned that
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`Mr. He accessed a number of these documents while at the same competitor, and, when the
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`misappropriation was uncovered, deleted the files to avoid detection.
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`5.
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`Cisco also has uncovered evidence that Mr. Williams misappropriated Cisco
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`Confidential Materials relating to Cisco’s sales forecasts and business development opportunities,
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`including spending commitments and potential upsides, by exfiltrating these documents from Cisco
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`immediately before his resignation from Cisco to join the same competitor, and by storing a backup
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`of his Cisco laptop on a home server and, on information and belief, maintaining Cisco Confidential
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`Materials on that server after leaving Cisco and starting work at that competitor. Cisco also has
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 3 of 26
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`uncovered evidence suggesting that Mr. Williams was offered employment at the same competitor
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`after proposing a go-to-market strategy he dubbed “Project X,” which had been developed and refined
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`at Cisco.
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`6.
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`Defendants’ conduct threatens to cause Cisco irreparable harm, potentially depriving
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`Cisco of the opportunity to obtain a first-mover advantage in product development and go-to-market
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`strategies, and depriving Cisco of business opportunities. There is also the threat that Cisco
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`Confidential Materials will be disclosed by Defendants, which will destroy the value of Cisco’s trade
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`secret technology and business processes.
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`The Parties
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`7.
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`Plaintiff Cisco Systems, Inc., is a company duly organized and existing under the laws
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`of California, having its principal place of business at 170 West Tasman Drive, San Jose, California
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`8.
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`Plaintiff Cisco Technology, Inc. is a wholly owned subsidiary of Cisco Systems, Inc.,
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`and is a company duly organized and existing under the laws of California, having its principal place
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`of business at 170 West Tasman Drive, San Jose, California 95134.
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`9.
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`Dr. Chung is an individual residing in this jurisdiction.
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`10. Mr. He in an individual residing in this jurisdiction.
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`11. Mr. Williams is an individual residing outside this jurisdiction.
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`Nature Of The Action
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`12.
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`This is a civil action for violation of the Defend Trade Secrets Act (“DTSA”) under 18
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`U.S.C. § 1836 et seq., and violation of Cal. Civ. Code § 3426 et seq.
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`Jurisdiction And Venue
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`13.
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`This Court has subject matter jurisdiction over Cisco’s claims for violation of the
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`Defend Trade Secrets Act (“DTSA”) pursuant to 28 U.S.C. §§ 1331 because they present a Federal
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`14.
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`This Court has supplemental subject matter jurisdiction of the pendent state law claims
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`pursuant to 28 U.S.C. § 1367 because they are so related to the DTSA claims that they form part of
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`the same case or controversy.
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 4 of 26
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`15.
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`16.
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`17.
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`This Court has personal jurisdiction over Dr. Chung because he resides in this district.
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`This Court has personal jurisdiction over Mr. He because he resides in this district.
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`This Court has personal jurisdiction over Mr. Williams because he has purposefully
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`directed his activities to this forum by committing intentional acts within California causing harm to
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`Cisco (a California corporation). Specifically, as outlined in the detailed factual allegations below,
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`Mr. Williams uploaded to cloud storage Cisco Confidential Materials while he was in California
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`immediately preceding his resignation from Cisco. Furthermore, Mr. Williams revealed details of a
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`sales strategy developed at Cisco and for Cisco to the competitor. Mr. Williams himself created the
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`contacts with the competitor in California, at least through his frequent travels and regular visits to its
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`headquarters in California while seeking employment with the competitor. Further still, upon his
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`resignation, Mr. Williams returned his Cisco issued laptop to Cisco’s California headquarters in-
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`person, but failed to return the backup of his laptop that he stored on a home server.
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`18.
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`Venue is proper within this District under 28 U.S.C. § 1391(b) because a substantial
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`part of the events or omissions giving rise to these claims occurred within this District.
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`FACTUAL ALLEGATIONS
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`Dr. Chung
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`Dr. Chung was employed at Cisco as Principal Engineer in Cisco’s Unified
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`A.
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`Communications Technology Group (“UCTG”). Dr. Chung was involved in developing Cisco’s
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`collaboration products, including IP telephony solutions and audio headsets. Incumbent with this role
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`was access to some of Cisco’s most confidential trade secrets used within the UCTG, including design
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`specifications, schematics, source code, product market analyses, and vendor contract details. Dr.
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`Chung left Cisco in February 2019 to join a competitor. Before doing so, Dr. Chung, without
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`authorization, willfully and maliciously misappropriated Cisco Confidential Materials to use for his
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`own benefit at the competitor, and to the detriment of Cisco. Subsequently, Dr. Chung recruited his
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`former Cisco colleague, James He, to join the competitor.
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`20.
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`21.
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`COMPLAINT
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`Dr. Chung began working for Cisco as a Technical Leader in March 2007.
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`On May 7, 2012, Dr. Chung became Principal Engineer of Cisco’s UCTG.
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 5 of 26
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`22.
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`Dr. Chung claims that his personal and work laptops were stolen around Thanksgiving
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`2018.
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` Subsequent to the alleged theft, Dr. Chung used a Lenovo ThinkPad X1 with serial
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`number PF0Z3DLE (“Lenovo laptop”) issued by Cisco as his primary work computer.
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`24.
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`On November 14, 2018, Cisco leased a MacBook Pro from IBM Global Finance which
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`was assigned to Dr. Chung to use as a secondary work computer. Dr. Chung’s department incurred
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`the cost for this MacBook Pro. This MacBook Pro (serial number C02W186W186HV2M)
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`(“MacBook”) was shipped to Cisco and later delivered to Dr. Chung.
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`27.
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`Dr. Chung does not own, and has never owned, the MacBook.
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`Dr. Chung is not the lessee, and has never been the lessee, of the MacBook.
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`Cisco did not authorize Dr. Chung’s retention of the MacBook when his employment
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`with Cisco ended.
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`Dr. Chung has no right to possess the MacBook after his employment with Cisco
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`terminated, and also had no right to possess the MacBook when he began to work at the competitor.
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`29.
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`On February 3, 2019, Dr. Chung downloaded over 3000 files from Cisco’s internal
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`document repositories. These documents are Cisco Confidential Materials and relate to, among other
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`things, Cisco’s contributions to 5G technology (such as its market opportunities), and design
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`specifications of a pre-release video conferencing display prototype.
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`On February 3, 2019, Dr. Chung connected a Seagate Expansion Drive with serial
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`number NAA77962 (“First Seagate drive”) to his Lenovo Laptop.
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`31.
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`Dr. Chung has not made this Seagate Expansion Drive available for inspection by either
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`Cisco or the competitor.
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`32.
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`On February 3, 2019, Dr. Chung connected a Samsung Flash Drive with serial number
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`374718110032913 (“Samsung Drive”) to his Lenovo laptop five times.
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`33.
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`34.
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`Dr. Chung copied Cisco Confidential Materials to the Samsung Drive.
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`On February 3, 2019, Dr. Chung uploaded files from the MacBook to his personal
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`iCloud account, including Cisco’s source code for debugging a user interface.
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 6 of 26
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`On February 6, 2019, Dr. Chung copied 129 files containing Cisco Confidential
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`Materials that relate to vendor product roadmaps and a pre-release video conferencing display
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`prototype to a Seagate Expansion SCSI Disk Device with serial number 26977AAN (“Second Seagate
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`drive”). The pre-release video conferencing display prototype documents included user experience
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`design documentation, user interview feedback, artwork prototypes, and schematics.
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`On February 6, 2019, Dr. Chung connected the Samsung Drive to the Lenovo laptop
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`four times.
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`On February 6, 2019, Dr. Chung connected a Sandisk UltraFit storage drive with serial
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`number 4C50001291121118332 (“Sandisk drive”) to his Lenovo laptop two times.
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`On information and belief, on February 6, 2019, Dr. Chung uploaded a folder entitled
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`“Toyshop” from his Lenovo laptop to cloud storage. This folder included Cisco Confidential Materials
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`such as design details and specifications relating to Cisco’s collaboration endpoints, including Cisco’s
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`Dr. Chung’s misappropriation of Cisco’s Confidential Materials was organized,
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`premeditated, and intentional.
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`40.
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`On February 6, 2019, Dr. Chung created various folders on the Samsung drive named
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`after an internal Cisco project codename.
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`41.
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`On February 6, 7, and 8, 2019, Dr. Chung created various folders on the Second Seagate
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`drive named after numerous additional Cisco project codenames.
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`On February 7, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop.
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`On February 8, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop twice.
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`On information and belief, on February 8, 2019, Dr. Chung uploaded Cisco
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`Confidential Materials to cloud storage, including a presentation detailing go-to-market strategy,
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`design details, cost modeling, and pricing information for a pre-release video conferencing display
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`product.
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 7 of 26
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`45.
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`On February 9, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop twice.
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`46.
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`On February 10, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop.
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`On February 11, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop twice.
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`On February 12, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop five times.
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`On February 13, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop twice.
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`On February 13, 2019, the MacBook was physically connected to Cisco’s corporate
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`network.
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`On February 13, 2019, Dr. Chung informed his manager that he was leaving Cisco.
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`During that February 13, 2019 conversation between Dr. Chung and his manager, Dr.
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`Chung told his manager that he was not sure where he would be working, but that he was considering
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`joining Apple.
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`53.
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`On February 14, 2019, Dr. Chung connected the Second Seagate drive to the Lenovo
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`laptop four times.
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`54.
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`On February 21, 2019, Dr. Chung told a vendor representative that his last day at Cisco
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`would be February 22, 2019.
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`Dr. Chung told the competitor that his last day at Cisco was February 22, 2019.
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`Dr. Chung’s last day at Cisco was, in fact, February 28, 2019.
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`On February 24, 2019, Dr. Chung forwarded an email and attachment from his Cisco
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`email account to his personal Gmail account. The attached document, clearly marked Cisco
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`confidential, related to Cisco’s prospective market positioning.
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`58.
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`On February 25, 2019, Dr. Chung downloaded more than 100 recordings of Webex
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`presentations to his Lenovo laptop. On information and belief, these recordings related to the design,
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 8 of 26
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`manufacture, pricing, and market opportunities for Cisco’s Unified Communications product
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`portfolio.
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`On February 25, 2019, Dr. Chung connected the Second Seagate drive to his Lenovo
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`laptop six times.
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`60.
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`On February 25, 2019, Dr. Chung created a folder entitled “Webex_Recordings” on the
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`Second Seagate drive.
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`61.
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`From February 26, 2019 through February 28, 2019, Dr. Chung was an employee of
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`both Cisco and the competitor.
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`62.
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`63.
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`64.
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`On February 26, 2019, Dr. Chung began work at the competitor.
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`On February 26, 2019, Dr. Chung logged into the MacBook.
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`On February 26, 2019, Dr. Chung emailed vendor representatives from his Cisco email
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`account to inform them that his last day at Cisco would be February 28, 2019.
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`65.
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`On February 26, 2019, Dr. Chung forwarded an email from his Cisco email account to
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`his personal Gmail account. This email thread included “minutes” from a Cisco meeting.
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`66.
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`On February 26, 2019, Dr. Chung logged into the competitor’s “Sharepoint” site from
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`the Lenovo laptop. Dr. Chung uploaded to the competitor’s Sharepoint, among other things, a
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`spreadsheet entitled Endpoints and Accessories (“EA document”).
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`67.
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`The EA document contains Cisco Confidential Materials, including component
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`specifications and competitive differentiators for Cisco’s current and not yet released endpoint
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`products.
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`68.
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`On February 27, 2019, Dr. Chung forwarded an email from his Cisco email account to
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`his personal Gmail account with details about a vendor contract, which also included a payment terms.
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`69.
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`70.
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`On February 27, 2019, Dr. Chung accessed his Google drive from the Lenovo laptop.
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`On February 27, 2019, Dr. Chung went to Cisco’s office and returned his badge and
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`the Lenovo laptop to Cisco. Dr. Chung arrived at approximately 3:00pm, had coffee with a Cisco
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`colleague, and posed for a group photo with members of Cisco’s UCTG. Dr. Chung did not turn in
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`the MacBook, First Seagate drive, Second Seagate drive, SanDisk drive, or Samsung drive.
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`COMPLAINT
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 9 of 26
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`On February 28, 2019, Dr. Chung forwarded an email from his Cisco email account to
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`his personal Gmail account with details about sensor requirements for Cisco products.
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`72.
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`On March 8, 2019, Dr. Chung emailed the EA document from his personal Gmail
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`account to his new business email account.
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`73.
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`On March 8, 2019, Dr. Chung emailed a file marked as Cisco Confidential and entitled
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`“Webex Workplace Vision and Strategy – Compete” from his personal Gmail account to his new
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`business email account.
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`74.
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`75.
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`By March 9, 2019, Dr. Chung began recruiting James He to join the competitor.
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`As of March 28, 2019, the MacBook had not been returned to Cisco. Cisco contacted
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`Dr. Chung to secure return of the MacBook.
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`76.
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`On March 29, 2019, Cisco contacted Dr. Chung and requested return of the MacBook.
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`Dr. Chung insisted that he owned the MacBook and asked Cisco to check with Cisco’s IT department.
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`77.
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`On April 9, 2019, after checking with Cisco’s IT department, Cisco notified Dr. Chung
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`that the MacBook was Cisco property and must be returned. Dr. Chung subsequently confirmed that
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`he possessed the MacBook. Cisco followed up with Dr. Chung on April 10, April 11, April 14, April
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`15, and April 18, but Dr. Chung refused to return the MacBook.
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`78.
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`Dr. Chung accessed Cisco’s confidential and proprietary business information while
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`employed at the competitor.
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`79.
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`After being notified of Cisco’s concerns that Dr. Chung had misappropriated Cisco’s
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`trade secrets, on September 26, 2019, the competitor informed Cisco that it had found five documents
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`on Dr. Chung’s devices, including the EA document that Dr. Chung had previously uploaded to the
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`competitor’s Sharepoint, which potentially included Cisco’s confidential and proprietary business
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`information.
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`80.
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`Dr. Chung downloaded the EA document from the competitor’s Sharepoint to his new
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`work computer issued by the competitor.
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`81.
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`On information and belief, Dr. Chung accessed this file, and others, for his own benefit,
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`and for the benefit of the competitor, to Cisco’s detriment.
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`COMPLAINT
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`9
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 10 of 26
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`82.
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`On September 19, 2019, counsel for Cisco wrote Dr. Chung a letter putting Dr. Chung
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`on notice to preserve all documents and things related to the potential misappropriation of Cisco’s
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`confidential and proprietary business information.
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`83.
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`After receiving this preservation notice, Dr. Chung took steps to conceal his
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`misappropriation. For example, after receiving the preservation notice, Dr. Chung:
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`a. permanently deleted iCloud backups;
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`b. permanently deleted Cisco Confidential Materials from the MacBook;
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`c. deleted Cisco Confidential Materials from the Sandisk drive;
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`d. deleted Cisco Confidential Materials from the Samsung drive; and
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`e. propounded a demonstrably false explanation for failing to return the Second Seagate
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`drive to Cisco.
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`84.
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`After receiving this preservation notice, and before delivering the MacBook, Sandisk
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`drive, his personal iPad, and Samsung drive to his attorney to eventually return to Cisco, Dr. Chung
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`performed internet searches such as “how to permanently delete icloud backup,” and “how to see what
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`is [sic] the thumb drive without detection.”
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`85.
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`86.
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`The Cisco competitor is in the IP telephony, headset, video, and collaboration space.
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`Dr. Chung understood that his employment by Cisco created a relationship of
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`confidence and trust with respect to confidential and proprietary information. Dr. Chung’s Proprietary
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`Information and Inventions Agreement (“Chung PIIA”) prohibited Dr. Chung during his employment
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`with Cisco from becoming an employee of any other firm engaged in a business in any way
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`competitive with the Company or involved in the design, development, marketing, sale, or distribution
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`of any networking or software products without first informing Cisco and obtaining its consent.
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`87.
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`By the terms of the Chung PIIA, Dr. Chung agreed that he would “not remove any
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`Company Documents and Materials from the business premises of the Company or deliver any
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`Company Documents and Materials to any person or entity outside of the Company, except as []
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`required to do in connection with performing the duties of [his] employment.” Dr. Chung also agreed
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`that “immediately upon the termination of [his] employment,” he would “return all Company
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`COMPLAINT
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`10
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 11 of 26
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`Documents and Materials, apparatus, equipment and other physical property, or any reproductions of
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`such property . . . .”
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`B. Mr. He
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`88. Mr. He was an engineer with Cisco, who played an integral role in developing many of
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`Cisco’s successful products. Incumbent with Mr. He’s responsibilities was access to some of Cisco’s
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`most confidential trade secrets used within the UCTG, including design specifications, schematics,
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`source code, product market analyses, and vendor contract details. Mr. He was slated to be promoted
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`to Principal Engineer. Mr. He left Cisco in June 2019 to join the same competitor.
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`89.
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`Before leaving Cisco, Mr. He, without authorization, willfully and maliciously
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`misappropriated Cisco’s confidential and proprietary business information to use for his own benefit
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`at the same competitor, and to the detriment of Cisco.
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`90.
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`On March 1, 2019, Dr. Chung communicated details of his new position at the same
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`competitor to Mr. He.
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`91.
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`On March 9, 2019, Dr. Chung told Mr. He that the same competitor was interested in
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`having Mr. He work there.
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`92. Mr. He regularly took photographs of Cisco Confidential Materials on his iPhone Max.
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`93.
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`For example, on May 13, 2019, Mr. He took a photograph of a financial presentation
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`containing Cisco Confidential Materials, which included Cisco’s Q3 financial highlights, largest deals,
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`and comparative revenue by category.
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`94.
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`On May 30, 2019, Mr. He copied Cisco Confidential Materials, including architectural
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`design documents relating to Cisco’s unreleased headset concepts to a Lacie external Hard Drive with
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`serial number 0000NL37HDBX (“Lacie drive”).
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`95.
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`96.
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`On June 1, 2019, Mr. He was notified that he was being promoted to Principal Engineer.
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`On June 1, 2019, Mr. He traveled from his home in China to California. Mr. He told
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`his manager that this was a personal trip. Mr. He remained in California until June 9, 2019.
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`97.
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`On June 3, 2019, Mr. He took a photo from his iPhone Max of a hardware diagram for
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`a Cisco headset prototype.
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`COMPLAINT
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`11
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 12 of 26
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`98.
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`On June 5, 2019, Mr. He took photographs from his iPhone Max of Cisco Confidential
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`Materials that discussed Cisco’s emerging business opportunities in the collaboration space. On this
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`date, Mr. He also downloaded a headset test report containing Cisco Confidential Materials.
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`99.
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`On June 6, 2019, Mr. He informed his manager that he was resigning from Cisco.
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`100. On June 6, 2019, Mr. He connected to Cisco’s Virtual Private Network from a Comcast
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`IP address in the United States.
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`101. On June 6, 2019, Mr. He copied over 100 documents to the Lacie drive. These
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`documents included Cisco Confidential Materials, such as design and configuration documents
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`relating to Cisco’s unreleased headset prototypes. Also included in these files was information relating
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`to vendor roadmaps for Cisco’s products.
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`102. On June 10, 2019, Mr. He had an in-person meeting with his manager in China. In this
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`meeting, Mr. He discussed his resignation with his manager. Mr. He stated that he was not going to
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`the same competitor, but that he was moving to Guangzhou for family reasons.
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`103. On June 11, 2019, Mr. He copied an email archive from his Cisco email account to the
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`Lacie drive. On June 14, 2019, Mr. He copied two additional archives from his Cisco email account
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`to the Lacie drive. These archives contain Cisco Confidential Materials. Discussions over email
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`contained in the archive reflect Cisco’s strategic product development decisions. The email archives
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`also include, as email attachments, technical design documents and presentations containing Cisco’s
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`104. On June 17, 2019, Mr. He copied approximately 200 emails from his Cisco email trash
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`folder to the Lacie drive. These emails contain Cisco Confidential Materials and relate to design
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`details for a then unreleased IP telephone project.
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`105. On June 18, 2019, Mr. He copied approximately 1500 files to the Lacie drive. These
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`files contain Cisco Confidential Materials and include internal emails, architectural documents,
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`marketing plans, and cost information.
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`106. On June 20, 2019, Mr. He copied approximately 90 files to the Lacie drive. These files
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`contain Cisco Confidential Materials and relate to Cisco’s headset projects.
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`107. On June 21, 2019, Mr. He left Cisco. Mr. He retained the Lacie drive.
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`COMPLAINT
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`12
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 13 of 26
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`108. On information and belief, Mr. He joined the same competitor on or around June 24,
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`2019.
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`109. On June 27, 2019, Mr. He accessed Cisco Confidential Materials stored on the Lacie
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`drive, including a schematic for an unreleased IP telephone project. Mr. He again accessed this file
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`on July 3, 2019.
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`110. On July 1, 2019, Mr. He accessed Cisco Confidential Materials stored on the Lacie
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`drive, including a vendor’s roadmap update created for Cisco.
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`111. On July 15, 2019, Mr. He accessed Cisco Confidential Materials stored on the Lacie
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`drive, including a full engineering specification for a next-generation conference room collaboration
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`device. Mr. He had previously copied this file to the Lacie drive on May 30, 2019.
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`112. On information and belief, Mr. He accessed these Cisco Confidential Materials for his
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`own benefit, and for the benefit of the same competitor, to Cisco’s detriment.
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`113. On August 2, 2019, counsel for Cisco put Mr. He on notice to preserve all documents
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`and things related to the potential misappropriation of Cisco’s confidential and proprietary business
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`114. On August 5, 2019, Mr. He deleted thousands of Cisco files containing Cisco’s
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`confidential and proprietary business information from the Lacie drive. On information and belief,
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`Mr. He deleted these files because the same competitor had commenced an internal investigation into
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`the misappropriation, and Mr. He was requested to turn the Lacie drive to the same competitor’s
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`investigators. In addition to the aforementioned files and file types, Mr. He deleted various source
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`code library stacks from the Lacie drive.
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`115. Mr. He understood that his employment by Cisco created a relationship of confidence
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`and trust with respect to confidential and proprietary information.
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`116. By the terms of Mr. He’s Proprietary Information and Inventions Agreement (“He
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`PIIA”), Mr. He agreed that he would “not remove any Company Documents and Materials from the
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`business premises of the Company or deliver any Company Documents and Materials to any person
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`or entity outside the Company, except as [] required to do in connection with performing the duties of
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`[his] employment.” Mr. He also agreed that “immediately upon the termination of [his] employment,”
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`COMPLAINT
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`13
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`Case 3:19-cv-07562-JD Document 1 Filed 11/18/19 Page 14 of 26
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`he would “return all Company Documents and Materials, apparatus, equipment and other physical
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`property, or any reproductions of such property . . . .”
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`C. Mr. Williams
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`117. Mr. Williams was a Managing Director in Global Collaboration Sales at Cisco until
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`October 2019. In this role, he had global responsibility for developing sales and marketing strategies
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`for bringing Cisco’s suite of collaboration products to market. Mr. Williams started at Cisco in 1998
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`as a Systems Engineer II.
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`118. On January 27, 2018, Mr. Williams emailed his resume to a former Cisco colleague,
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`whom he worked with at Cisco to collectively execute foundational business development strategies
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`of “Project X” on Cisco’s behalf.
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`119. On January 29, 2019, an Executive Vice President of the same competitor, who was
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`formerly at Cisco, communicated with Mr. Williams over LinkedIn.
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`120. On information and belief, from January 29, 2019 to October 14, 2019, Mr. Williams
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`met or otherwise corresponded with the same competitor’s executives, recruiters, and other employees
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`no fewer than 19 times.
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`121. On information and belief, on June 10, 2019, Mr. Williams sent himself an email from
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`his phone with prep notes for an interview with the same competitor. These notes say, among other
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`things, “Have to promise not to say anything,” “make sure he knows I know channels,” “xx% of the
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`business goes through channel today,” “I own SPaaCH [Service Provider as a Channel] today,” and
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`“you can’t be successful at Cisco without understanding how to drive the channel.”
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`122. On June 28, 2019, Mr. Williams traveled to San Francisco to interview with the same
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`123. On September 6, 2019, Mr. Williams drafted an email to an Executive Vice President
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`of the same competitor, who was formerly at Cisco, from his Cisco email account to the Executive
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`Vice President’s personal Gmail account. Mr. Williams proposed to the Executive Vice President a
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`vision for how he could hit the ground running at the same competitor entitled “Project X.