Knowmadics v. Cinnamon, 2019 ONSC 6549


Read full decision. Summary prepared by Alan Macek:

The plaintiff Knowmadics Inc. (the plaintiff) seeks an interim and interlocutory injunction restraining its former employee, the defendant Lisa Cinnamon and her company LDX Inc. from infringing its copyright in its SilverEye software and from breaching an Employment Agreement and related contractual agreements between the parties. ... The defendants’ arguably unlawful competition in the Canadian market has decimated the plaintiff’s customer base, leaving it with only two of their original clients. The defendants have been able to substantially undercut the plaintiff’s pricing for the SilverCat software and in Nova Scotia have distributed their FireCat software free of charge. I am persuaded that the plaintiff has established that it is a potentially irreversible loss of goodwill and market share. Moreover, Ms. Cinnamon and her company LDX, which is a two person operation, would appear to have minimal assets to answer a judgment. ... In the court’s opinion an interim interlocutory injunction which permits the defendants to continue to service only their existing Canadian based clients with their FireCat software until the trial of this action achieves an adequate balancing of the interests of both parties and avoids irreparable harm to either one. The object of such an order would be to maintain the status quo pending trial.


Canadian Intellectual Property