Court Rules in Favor of Data Depth on Valeo Preliminary Injunction Motion

May 24, 2005

Data Depth Corporation, a/k/a:, has announced that the United States District Court has denied a Motion for Preliminary Injunction brought against Data Depth Corporation (DDC) by Valeo Intellectual Property. Data Depth had previously granted Valeo and its affiliates a license to use its "iCopyright Tag" and Instant Licensing Software. In December 2004, Data Depth terminated the agreement.

Valeo asked the judge to issue a Preliminary Injunction stopping Data Depth from terminating the agreement and from working with Valeo's competitors. The judge refused, saying "…DDC is likely to prevail on its claim that Valeo's misuse of the iCopyright tag is a material breach of the License Agreement….It is also evident that Valeo's alteration of the iCopyright tag was an effort to promote itself at the expense of DDC." The Court further found that "Valeo has not shown that it is likely to prevail in showing that the License Agreement still binds Data Depth." Valeo also sought a gag on Data Depth's publicizing the dispute, including issuing press releases.