has been cleared by a California state court jury of all claims, including alleged trade secret claims, brought by Ixia. On October 15, 2009, a California jury soundly rejected all claims brought by Ixia against IneoQuest. Because IneoQuest prevailed at trial on all claims, IneoQuest will ask the Court to order Ixia to pay certain litigation costs incurred by IneoQuest.
The jury verdict in IneoQuest's favor was the second significant victory by IneoQuest in connection with this state court litigation. In 2006, IneoQuest prevailed over Ixia in connection with Ixia's motion for a preliminary injunction in which Ixia unsuccessfully attempted to stop IneoQuest from doing business with certain IneoQuest customers.
IneoQuest now moves forward with its federal court action against Ixia, which was filed in November 2008. In the complaint, IneoQuest alleges that in 2004, Ixia and IneoQuest entered into a written non-disclosure agreement to allow the parties to discuss possible business and technical relationships. During this period, Ixia allegedly obtained valuable technology, market and company information from IneoQuest under the NDA. Ixia then allegedly used the obtained IneoQuest information as the core for the video solutions it currently markets. Moreover, the complaint alleges that Ixia incorporated IneoQuest's patented Media Delivery Index technology in certain Ixia video solutions, again without IneoQuest's authority or permission. Accordingly, IneoQuest's complaint seeks a remedy for Ixia's infringement of IneoQuest's U.S. Patent No. 7,321,565. IneoQuest's complaint further alleges that Ixia has illegally interfered with IneoQuest's business through various unfair business practices.