The Federal Court affirmed the judgment against Vinod Gupta and DatabaseUSA, in a highly favorable outcome for Infogroup.
In its amended judgment, the Court awarded Infogroup, a leading provider of data and multichannel marketing solutions, $21.2 million in total damages as well as attorney fees and costs, including $10.4 million for which Gupta is personally liable. The Court also permanently enjoined Gupta and DatabaseUSA from improperly using Infogroup’s tradenames, from making false advertising statements and from participating in future unfair competitive practices. Finally, the Court ordered Gupta and DatabaseUSA to preserve their financial records and to refrain from transferring their assets outside of the ordinary course of business, until the judgment is paid in full.
As such, the Court upheld the earlier jury verdicts that Gupta and DatabaseUSA violated various federal laws and contractual obligations, including the infringements of Infogroup’s copyrighted business database and its registered trademarks. The Court went further to find that the misconduct of Gupta and DatabaseUSA presented an “exceptional case” in which they intentionally destroyed key evidence and willfully and deliberately violated of federal laws. “We are pleased that justice has been achieved, and the competitors that violated the rules have been held responsible,” explained Greg Scaglione, lead trial counsel for Infogroup.