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Three former Nike shoe designers filed a formal response and a counter lawsuit against Nike in a dispute over trade secrets on March 17, 2015.
Citation preview
1 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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IN THE CIRCUIT COURT OF THE STATE OF OREGON
FOR THE COUNTY OF MULTNOMAH
NIKE, INC., an Oregon corporation,
Plaintiff,
vs.
DENIS DEKOVIC, an individual; MARC DOLCE, an individual; and MARK MINER, an individual,
Defendants.
No. 14CV18876
DEFENDANTS’ ANSWER AND COUNTERCLAIMS
For its answer to the Complaint filed by Plaintiff Nike (“Nike”), Defendants Denis
Dekovic, Marc Dolce, and Mark Miner (“Defendants”) admit, deny, and allege as follows:
I. Introduction
1.
Defendants deny the allegations in paragraph 1. Answering further, Denis Dekovic,
Marc Dolce, and Mark Miner (collectively the “Designers”) were three of Nike’s top
footwear designers, responsible for some of Nike’s most successful footwear launches over
the last several years. The Designers independently decided that the Nike corporate culture
was stifling their creativity. And they, along with many of their design co-workers, were
alarmed about the culture of distrust and intimidation that permeates the relationships
between Nike executives and Nike Design creatives. The Designers decided that they
wanted to leave Nike to create an independent studio, to be hired by companies to provide
artistic direction across product lines. They discussed branching out to many product types,
including furniture, transportation, household items, fashion, apparel and sneakers. Nothing
2 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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about their idea for an independent studio relies on any confidential information of Nike’s.
Unlike Nike’s design “Kitchen,” which is steeped in Nike corporate culture and politics, the
Designers’ design studio concept is focused on interaction with the consuming public,
without a stifling bureaucratic overlay. The Designers are not interested in and will not use
old Nike designs or old Nike ideas in their new venture. To the extent that any of the
Designers have old files or pictures that Nike contends are trade secrets, they do not want to
keep them and have agreed to permanently delete them. None of the Designers has ever
passed any trade secret information to adidas or any other competitor, and they will not ever
do so.
2.
Paragraph 2 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, they neither admit nor
deny this portion of the allegation. To the extent any document was obtained improperly or
contains privileged communications, the Designers will move to strike. The Designers deny
the remainder of the allegations in this paragraph. Answering further, and as explained more
fully in the counterclaims, this lawsuit is based on Nike’s breathtaking breach of the
Designers’ personal privacy. Although Nike claims to permit non-business use of the
electronic communications systems, Nike monitored, read, copied and distributed its
employees’ personal communications with friends and family. Answering further, the
Designers’ popularity on social media is not measured by numbers of followers, but by their
followers’ participation and the vibrancy of their community. By that measure, the
Designers are among the most popular designers on social media. Nike, on the other hand,
recently had over a quarter-million “fake followers” removed from its Instagram account.
http://64px.com/instagram/ When the Designers pitched their design studio idea to adidas,
the parties found that their ideas were closely aligned, and agreed that the Designers could, if
3 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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they decided to leave Nike, create a design studio within adidas that would free them and
other adidas designers to have influence over brand direction, without strict product-line
responsibility and with the ability to share ideas with consumers.
3.
With respect to paragraph 3, the Designers admit that they signed agreements that
Nike has identified as non-competition agreements with Nike, the terms of which speak for
themselves. Paragraph 3 also appears to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Except as expressly admitted, the Designers deny the remainder of the allegations in
this paragraph.
4.
Paragraphs 4-5 appear to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, they neither admit nor
deny this portion of the allegation. To the extent any document was obtained improperly or
contains privileged communications, the Designers will move to strike. The Designers deny
the remainder of the allegations in these paragraphs.
5.
With respect to paragraph 6, the Designers deny Nike’s mischaracterizations of their
actions. Defendant Dekovic admits that on or about September 16, 2014, while he was still
employed by Nike, an Apple technician copied data from Dekovic’s Nike-issued laptop to an
external hard drive because his laptop had been damaged for approximately two weeks, and
Nike was unable to fix his laptop despite Dekovic’s request to Nike for help. Dekovic also
4 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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has since returned his damaged Nike-issued laptop to Nike and has returned an external hard
drive containing Nike information from his damaged Nike-issued laptop to Nike. In
addition, Dekovic admits that he has submitted his other electronic devices to an independent
forensic examiner and intends to return or delete Nike information from those electronic
devices in accordance with the parties’ agreement.
Defendant Dolce admits that in September 2014, he deleted primarily his
confidential, personal, or financial information and photos from his Nike-issued MacBook
before returning it to Nike. Defendants Dolce and Miner admit that they restored their
iPhones to factory default settings before returning them to Nike. The Designers’ actions
were not inconsistent with Nike policy or practice.
Paragraph 6 also appears to contain a partial quote taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, they neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Except as expressly admitted, the Designers deny the remainder of the allegations in this
paragraph.
6.
With respect to paragraph 7, the Designers admit that they posted a message which
said “GRATEFUL for the past EXCITED for the future 3 brothers 3 dreamers 3 stripes
#TeamAdidas 2015” with a picture of themselves. The Designers deny Nike’s false
characterization of this quote. Furthermore, Nike has taken another partial quote out of
context from a document that Nike did not identify or provide to the Designers, so the
Designers neither admit nor deny that portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
5 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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strike. Except as expressly admitted, the Designers deny the remainder of the allegations in
this paragraph.
7.
Paragraphs 8-9 appear to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike. The
Designers deny the remainder of the allegations in these paragraphs.
8.
Defendants deny the allegations in paragraphs 10 and 11.
II. Jurisdiction and Venue
9.
Paragraphs 12-13 contain legal conclusions to which no responsive pleading is
required.
III. Parties
10.
Defendants admit paragraph 14.
11.
Defendant Dekovic denies paragraph 15.
12.
Defendant Dolce denies paragraph 16.
13.
Defendant Miner denies paragraph 17.
6 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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IV. Factual Background
14.
Defendants lack sufficient knowledge or information to form a belief as to the
allegations in paragraph 18-22, and therefore deny the same.
15.
Defendant Dekovic admits that he worked as a Senior Designer and as a Design
Director and Senior Design Director for Nike’s Global Football. Defendant Dekovic admits
that he had design and leadership responsibilities at Nike. Except as expressly admitted, the
Designers deny the remainder of the allegations in paragraph 23.
16.
Defendant Dolce admits that he worked as a Senior Designer in Nike’s Active Life
Division, as Design Director of Nike Sportwear, as Design Collections Lead for Nike
Sportswear, and as a lead product designer. Defendant Dolce admits that he had design and
leadership responsibilities at Nike. Except as expressly admitted, the Designers deny the
remainder of the allegations in paragraph 24.
17.
Defendant Miner admits that he worked as a footwear designer in Nike’s Global
Women’s Training and as a Senior Footwear Designer of Nike Running. Miner admits that
he had design responsibilities at Nike. Except as expressly admitted, the Designers deny the
remainder of the allegations in paragraph 25.
18.
Defendants deny the allegations in paragraphs 26 and 27.
19.
With respect to paragraphs 28-30, the Designers admit that they entered into non-
competition agreements with Nike, the terms of which speak for themselves. To the extent
7 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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that paragraphs 28-30 require a responsive pleading, the Designers deny the allegations in
those paragraphs.
20.
With respect to paragraph 31, the Designers admit that they entered into an employee
invention and secrecy agreement with Nike, the terms of which speak for themselves. To the
extent that paragraph 31 requires a responsive pleading, the Designers deny the allegations in
that paragraph.
21.
Defendants deny the allegations in paragraphs 32-33.
22.
Paragraph 34 appears to refer to a statement taken out of context from a document
that Nike did not identify or provide to the Designers. Until the Designers receive a copy of
the document, the Designers neither admit nor deny this portion of the allegation. To the
extent any document was obtained improperly or contains privileged communications, the
Designers will move to strike. Defendants deny the remainder of the allegations in this
paragraph.
23.
Paragraph 35 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Defendants deny the remainder of the allegations in this paragraph.
///
///
///
8 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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24.
Defendants deny the allegations in paragraphs 36-38.
25.
Paragraph 39 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Defendants deny the remainder of the allegations in this paragraph.
Defendants deny the allegations in paragraph 40.
26.
Paragraphs 41-45 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants deny the remainder of the allegations in these paragraphs.
27.
Defendants deny the allegations in paragraph 46.
28.
Paragraphs 47-51 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. With respect to paragraph 49, defendant Dekovic admits that he met with his friend
9 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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Brian Foresta many times over many years, including in June 2014. Except as expressly
admitted, the Designers deny the remainder of the allegations in these paragraphs.
29.
With respect to paragraph 52, the Designers admit that they consulted with legal
counsel. Defendants neither admit nor deny portions of the allegations protected by the
attorney-client privilege, specifically any information exchanged between the Designers and
legal counsel or between the Designers regarding the legal advice of counsel. Furthermore,
paragraph 52 appears to contain partial quotes taken out of context from a document that
Nike did not identify or provide to the Designers. The document, if it exists, speaks for itself
and until the Designers receive a copy of the quoted document, the Designers neither admit
nor deny this portion of the allegation. To the extent any document was obtained improperly
or contains privileged communications, the Designers will move to strike. Defendants deny
the remainder of the allegations in this paragraph.
30.
Paragraphs 53-55 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants admit that they met with Brian Foresta, Eric Liedtke, and Paul Gaudio.
Except as expressly admitted, the Designers deny the remainder of the allegations in these
paragraphs.
31.
Defendants deny the allegations in paragraph 56.
///
///
10 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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32.
Paragraph 57 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Defendants deny the remainder of the allegations in this paragraph.
33.
Defendants deny the allegations in paragraph 58.
34.
Paragraph 59 appears to contain a partial quote taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Defendants deny the remainder of the allegations in this paragraph.
35.
Defendants deny the allegations in paragraph 60.
36.
Paragraphs 61-63 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants deny the remainder of the allegations in these paragraphs.
11 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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37.
The allegations in paragraphs 64-65 contain some half-truths and distortions.
Defendant Dekovic admits that his Nike laptop was damage and that Nike was unwilling to
assist him to repair it or restore or retrieve the data. Dekovic further admits that a purported
copy was made, but denies the balance of paragraphs 64-65.
38.
Defendants deny the allegations in paragraphs 66-67.
39.
Paragraph 68 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike.
Defendants deny the remainder of the allegations in this paragraph.
40.
Defendants deny the allegations in paragraphs 69-70.
41.
Paragraphs 71-74 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants deny the remainder of the allegations in these paragraphs.
42.
With respect to paragraph 75, Defendants admit that they have posted a message
which said “GRATEFUL for the past EXCITED for the future 3 brothers 3 dreamers 3
12 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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stripes #TeamAdidas 2015” with a picture of themselves. Defendants deny the remainder of
the allegations in paragraph 75.
43.
Defendants deny the allegations in paragraphs 76-77.
44.
Paragraphs 78-79 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants deny the remainder of the allegations in these paragraphs.
45.
Defendants deny the allegations in paragraph 80.
46.
Paragraphs 81-83 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
was obtained improperly or contains privileged communications, the Designers will move to
strike. Defendants deny the remainder of the allegations in these paragraphs.
47.
Defendants deny the allegations in paragraph 84.
CLAIMS FOR RELIEF
FIRST CLAIM FOR RELIEF
48.
Defendants incorporate their answers to paragraphs 1 through 84.
13 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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49.
With respect to paragraphs 86-117, the Designers admit that they signed
noncompetition agreements and employee invention and secrecy agreements with Nike, the
terms of which speak for themselves. Defendants also admit that Nike has paid them each 50
percent of their Nike salaries during the applicable non-compete period. Defendants deny
the remaining allegations in paragraphs 86-117.
SECOND CLAIM FOR RELIEF
50.
Defendants incorporate their answers to paragraphs 1 through 117.
51.
With respect to paragraph 119, the Designers admit that they signed noncompetition
agreements and employee invention and secrecy agreements with Nike, the terms of which
speak for themselves. To the extent this paragraph states a legal conclusion, no response is
necessary. To the extent a response is necessary, the Designers deny the allegations in
paragraph 119.
52.
Defendants deny the allegations in paragraphs 120-124.
THIRD CLAIM FOR RELIEF
53.
Defendants incorporate their answers to paragraphs 1 through 124.
54.
To the extent that paragraph 126 states a legal conclusion, no response is necessary.
To the extent a response is necessary, the Designers deny the allegations in paragraph 126.
55.
Defendants deny the allegations in paragraphs 127-131.
///
14 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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FOURTH CLAIM FOR RELIEF
56.
Defendants incorporate their answers to paragraphs 1 through 131.
57.
To the extent that paragraphs 133 - 135 state legal conclusions, no response is
necessary. To the extent a response is necessary, the Designers deny the allegations in
paragraphs 133-135.
58.
Defendants deny the allegations in paragraphs 136-139.
FIFTH CLAIM FOR RELIEF
59.
Defendants incorporate their answers to paragraphs 1 through 139.
60.
To the extent that paragraph 141 states a legal conclusion, no response is necessary.
To the extent a response is necessary, the Designers deny the allegations in paragraph 141.
61.
Defendants deny the allegations in paragraphs 142-145.
SIXTH CLAIM FOR RELIEF
62.
Defendant Dekovic incorporates his answers to paragraphs 1 through 145.
63.
Defendant Dekovic denies the allegations in paragraphs 147-150.
SEVENTH CLAIM FOR RELIEF
64.
Defendants incorporate their answers to paragraphs 1 through 150.
///
15 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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65.
To the extent that paragraph 150 states a legal conclusion, no response is necessary.
To the extent a response is necessary, the Designers deny the allegations in paragraph 150.
66.
Defendants deny the allegations in paragraphs 153-161.
EIGHTH CLAIM FOR RELIEF
67.
Defendants incorporate their answers to paragraphs 1 through 161.
68.
Defendants deny the allegations in paragraphs 166-166.
69.
With respect to paragraph 167, the Designers deny that its claims meet the standards
required to plead punitive damages.
70.
Defendants deny each and every allegation in the Complaint except as specifically
alleged above.
I. Defenses
By way of defense or avoidance, and as a precautionary matter and without assuming
the burden or pleading or proof, which burden Defendants assert is on the Plaintiff,
Defendants allege as follows:
FIRST DEFENSE
(Failure to State a Claim)
71.
As a separate and independent affirmative defense, Defendants allege that the
Complaint and each and every cause of action within it fails to state ultimate facts sufficient
16 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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to constitute a claim upon which relief may be granted.
SECOND DEFENSE
(Preemption by the Oregon Trade Secrets Act)
72.
As a separate and independent affirmative defense, Defendants allege that Plaintiff’s
seventh claim for relief is preempted by the Oregon Trade Secrets Act, ORS 646.461-
646.475.
THIRD DEFENSE
(Contractual Invalidity)
73.
As a separate and independent affirmative defense, Defendants allege that each
Covenant Not to Compete and Non-Disclosure Agreement and each Employee Invention and
Secrecy Agreement relied on by Plaintiff constitutes an invalid and improper restraint on
trade at common law and pursuant to ORS 653.295.
FOURTH DEFENSE
(Estoppel/Waiver/Permission/Ratification)
74.
Any alleged wrongful conduct by the Designers, if true, was legally permitted on the
grounds of estoppel, waiver, permission and/or ratification. In particular, Plaintiff:
A. Knew, approved, did not object, and/or encouraged Defendant Dekovic’s
contribution to the outside Moonwalker project;
B. Encouraged and/or directed Defendants to broadly publish their drawings and
designs;
C. Engaged in a pattern of aggressive recruitment of designers from competitors,
encouraging and establishing a culture of disloyalty and mobility in the design community,
including requiring Defendants to participate;
17 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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D. Failed to enforce, as it now seeks to enforce against Defendants, terms of its
noncompetition and confidentiality agreements against other departed or departing
employees;
E. Failed to provide support and assistance to Defendants to identify and remove
from Defendants’ electronic devices that which plaintiff now claims to be protected
proprietary information and/or trade secrets; and
F. Released or leaked to the public information it now contends Defendants
unlawfully possess.
FIFTH DEFENSE
(Unclean Hands / In Pari Delicto)
75.
Plaintiff’s claims are barred in whole or in party by the doctrines of unclean hands
and in pari delicto. In particular, and as alleged herein on information and belief, Plaintiff’s
claims rely on records it obtained unlawfully, and it cannot therefore obtain the equitable or
legal relief it seeks.
I. Counterclaims
FIRST COUNTERCLAIM
(Violation of Stored Communications Act)
76.
The Stored Communications Act, 18 U.S.C. § 2701, imposes liability upon any
person who “intentionally accesses without authorization a facility through which an
electronic communication service is provided; or intentionally exceeds an authorization to
access that facility; and there by obtains, alters, or prevents authorized access to a wire or
electronic communication while it is in electronic storage in such system.” 18 U.S.C.
§ 2701(a). 18 U.S.C. § 2707 authorizes civil actions for violations of the Act.
18 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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77.
On information and belief, Plaintiff intentionally accessed one or more facilities,
through which an electronic communication service is provided in its efforts to obtain private
information formerly stored on Defendants’ laptops and smart phones. These facilities
include, but are not limited to, the facilities, servers, and networks used by iCloud,
WhatsApp, Twitter, Facebook, and Gmail.
78.
In doing so, Plaintiff obtained certain of Defendants’ electronic communications,
including but not limited to the numerous personal communications quoted and attached to
Plaintiff’s complaint and motion for temporary restraining order.
79.
Plaintiff’s access was obtained without Defendants’ authorization and in excess of the
scope of any authorization associated with Defendants’ employment by Plaintiff.
80.
As a direct and proximate result of Plaintiff’s breach, the full extent of which is still
unknown, Defendants have suffered actual damages in an amount to be proven at trial, but
not less than the sum of $1,000, as provided by statute. 18 U.S.C. § 2707.
81.
Plaintiff’s manifestly unauthorized access involved substantial expense, time, and
diligence and was willful and intentional. Accordingly, Defendants are entitled to punitive
damages and intend to move pursuant to ORS 31.725 and 18 U.S.C. § 2707(c) to add a claim
for punitive damages against Plaintiff for its willful and intentional violation of the Stored
Communications Act.
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19 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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SECOND COUNTERCLAIM
(Violation of Social Media Privacy Act, ORS 659A.330)
82.
Oregon law makes it an unlawful employment practice for an employer to “[r]equire
or request an employee * * * to disclose or to provide access through the employee’s * * *
user name and password, password or other means of authentication that provides access to a
personal social media account.” ORS 659A.330(1)(a). An employer is not liable for access
to social media accounts received inadvertently, but the employer “may not use the
information to access the personal social media account[s] of the employee.”
ORS 659A.330(6).
83.
Plaintiff’s Electronic Communications Policy, as quoted at footnote 2 of the
complaint, unlawfully requires employees to grant Plaintiff access to their social media
accounts, by reserving to Plaintiff “the right to access the electronic communication systems
and monitor data and messages within them, and to read, reject or remove any message,
including attachments, composed, sent or received, at any time for any reason.”
84.
The foregoing, if construed as pleaded by Plaintiff, would improperly permit Plaintiff
to access personal email and social media accounts, all of which satisfy the statutory
definition of “social media account” found at ORS 659A.330(7).
85.
On information and belief, Plaintiff accessed Defendants’ social media accounts by
using the account authentication data stored and/or programmed on Defendants’ electronic
devices, in spite of reasonable measures taken by Defendants to protect said personal social
media account data.
20 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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86.
To the extent Plaintiff purports to have accessed the accounts by inadvertence, rather
than by compulsion, Plaintiff nevertheless violated its statutory obligation not to use the
personal social media account data accessed through Defendants’ devices by repeatedly
employing that material to support the allegations contained in Plaintiff’s complaint.
87.
As a direct and proximate result of Plaintiff’s compulsory, improper, and
unauthorized access to Defendants’ social media accounts, the full extent of which remains
undiscovered, Defendants have suffered damages in an amount to be proven at trial.
THIRD COUNTERCLAIM
(Invasion of Privacy - Intrusion upon Seclusion)
88.
Defendants’ social media accounts, including email applications, networking
platforms, and messaging applications, pertained to Defendants’ private affairs and concerns.
89.
Defendants protected their social media accounts with passwords and authentication
methods sufficient to establish a reasonable expectation of privacy in those accounts.
90.
By obtaining unauthorized and wide-ranging access to these accounts, Plaintiff
intentionally intruded upon Defendants’ private affairs.
91.
Plaintiff’s intrusion would be highly offensive to a reasonable person.
92.
As a direct and proximate result of Plaintiff’s intrusion upon Defendants’ private
affairs, Defendants have suffered offense and anguish, resulting in damages in an amount to
be proven at trial.
21 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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FOURTH COUNTERCLAIM
(Bad Faith/Attorney’s Fees, ORS 646.467(1) & ORS 20.105.)
93.
Plaintiff’s trade secrets claims are meritless and have been made entirely without any
basis in fact or law. Plaintiff knows, or should reasonably know, that the Defendants have
not disclosed and do not intend to disclose or misappropriate any of Plaintiff’s trade secrets.
The Complaint fails to allege a single instance of disclosure or misappropriation of a
protected trade secret or any expression of intent to do so.
94.
Plaintiff’s trade secret claims also have an improper purpose. The Complaint was
filed as part of a publicity stunt, the purpose of which was to disrupt Defendants and their
future employer and to chill other Nike employees from considering leaving Nike, lest they
too be sued.
95.
Due to Plaintiff’s bad faith in filing and maintaining trade secrets claims, Defendants
are entitled to reasonable attorney fees pursuant to either or both ORS 646.467(1) and ORS
20.105.
FIFTH COUNTERCLAIM
(Declaratory Relief – ORS 28.020-28.030; ORS 28.080; ORS 653.295)
96.
Nike’s Covenant Not to Compete agreements with the Designers are unenforceable
because they are overreaching and do not protect any legitimate interest of Nike.
97.
The Designers’ noncompetition agreements include “Competition Restriction”
clauses which state: “During EMPLOYEE’s employment by NIKE, under the terms of any
22 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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employment contract or otherwise, and for 1 year thereafter, (the “Restriction Period”),
EMPLOYEE will not directly or indirectly, own, manage, control, or participate in the
ownership, management or control of, or be employed by, consult for, or be connected in any
manner with, any business engaged anywhere in the world in the athletic footwear, athletic
apparel or sports equipment, sport electronics/technology and sports accessories business, or
any other business which directly competes with NIKE * * * .”
98.
The Designers signed additional employee invention and secrecy agreements, and
their noncompetition agreements contained clauses including “Return of Protected
Information,” “Unauthorized Use,” and “Non-Solicitation/Non-Recruitment.” These other
provisions provide more than adequate protection of any legitimate interests. The
“Competition Restriction” clauses in the noncompetition agreements serve no purpose, save
for unlawfully stifling fair competition and crippling the Designers’ ability to obtain
employment elsewhere.
99.
Neither thwarting competition nor hamstringing a former employee’s ability to work
or seek new employment is a legitimate interest of an employer.
100.
Nike’s assertion that “Competition Restriction” clauses protect against the
misappropriation of trade secrets is not a legitimate interest or concern here. Design skills,
concepts, visions, and creative ability are not “trade secrets.” The more technical
confidential information alleged as trade secrets is actually already prevalent in the industry,
so it is not a trade secret and replication by a competitor would be unnecessary. Furthermore,
in the Designers’ industry, competitors do not benefit from the use of another’s alleged
“trade secrets.” The use of a competitor’s “trade secrets” in this industry would be the
antithesis of a designer’s creative mission to develop new, fresh, innovative concepts. The
23 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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Designers and adidas would not benefit from copying Nike’s product lines, product launches,
or related information. Nike cannot allege or prove that the Designers inevitably used or will
use Nike’s trade secrets in their work.
101.
The overbroad scope and vagueness render the “Competition Restriction” clauses
unenforceable. In particular, the “Competition Restriction” clauses state that former
employees cannot “be connected in any manner with, any business engaged anywhere in the
world in the athletic footwear, athletic apparel or sports equipment, sport
electronics/technology and sports accessories business.” This provision far exceeds any
legitimate restrictive covenant permissible in Oregon and if enforced literally would produce
oppressive results, including making it virtually impossible for a Nike employee to seek
future employment with a competitor. This violates both the public interest and specifically
the Designers’ interest in earning a living.
102.
The practical effect of this clause is to handcuff employees to Nike, preventing them
from working in the athletic industry. Nike is seeking to apply it to the Designers to punish
them for seeking future employment from adidas, even beyond the noncompetition period.
103.
The “Extension of Time” clauses in the Covenants Not to Compete are also
unreasonable, void, and unenforceable. Extension of time restrictions in noncompetition
agreements are not authorized by Oregon law. And, any alleged trade secrets which Nike
claims the Designers maintain in their possession have short shelf life. These alleged trade
secrets will soon be disclosed or already have been disclosed by Nike. In the fast-moving,
trendy world of design, the information will be stale and outdated in a year; thus, a time
extension is not warranted.
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24 - DEFENDANTS’ ANSWER AND COUNTERCLAIMS
MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENUE PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-9105
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104.
Pursuant to ORS 28.020-28.030; ORS 28.080; and ORS 653.295, the Designers
hereby seek a declaration from this Court that their Covenants Not to Compete are invalid
and unenforceable. The Court should deem void unreasonable agreements such as these
because it discourages employers like Nike from drafting overreaching noncompetition
agreements and then later relying on a court to strike the most offensive provisions.
105.
In the alternative, the Designers request that the Court modify the Covenants Not to
Compete to strike the “Competition Restriction” and “Extension of Time” provisions.
106.
Defendant Miner’s noncompetition agreement should be deemed void under ORS
653.295 because his promotion to Senior Footwear Designer did not constitute bona fide
advancement.
107.
There is a justiciable controversy between the parties that would result in specific
relief to the Designers through the binding decree of court granting the above requested
declaratory relief.
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WHEREFORE, Defendants pray that the Court enter judgment in their favor, award
2 Plaintiff nothing, and award Defendants their damages, attorney fees and costs of suit.
3 DATED this 17th day of March, 2015.
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426908
:ARK}WITZH
Mat ew A. Levin, OSB No. 003054 [email protected] Jeffrey M . Edelson, OSB No. 880407 [email protected] Steffan Alexander, OSB No. 130258 [email protected] Anna H. Makowski , OSB No. 135530 [email protected]
Of Attorneys for Defendants Denis Dekovic, Marc Dolce, and Mark Miner
25 - DEFENDANTS' ANSWER AND COUNTERCLAIMS MARKOWITZ HERBOLD PC SUITE 3000 PACWEST CENTER
1211 SW FIFTH AVENU E PORTLAND, OREGON 97204-3730
(503) 295-3085 Fax: (503) 323-91 OS
ATTORNEY CERTIFICATE OF SERVICE
I hereby certify that on March 17, 2015 , I have made service ofthe foregoing DEFENDANTS' ANSWER AND COUNTERCLAIMS on the party listed below in the manner indicated
Amy Joseph Pedersen, OSB No. 853958 Laura E. Rosenbaum, OSB No. 110061 RyanS . Gibson, OSB No. 073873 Stoel Rives LLP 900 SW Fifth A venue, Suite 2600 Portland, OR 97204
Sean S. Twomey, Pro Hac Vice Jeffrey H. Reeves, Pro Hac Vice Jeffrey T. Thomas, Pro Hac Vice Gibson, Dunn & Crutcher LLP 3161 Michelson Drive Irvine, CA 92612-4412
Attorneys for Plaintiff
~ U.S. Mail D Facsimile 0 Hand Delivery ~ Email
ajpedersen@stoel .com; [email protected]; [email protected]
~U.S. Mail D Facsimile 0 Hand Delivery [g) Email
[email protected] [email protected] [email protected]
DATED this 17th day of March, 2015 .
CERTIFICATE OF SERVICE
Matt ew A. evin, OSB No . 003054 Attorney for Defendants