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Privacy: Pleadings:

Raytheon Company

v.

John Does 1-21

Commonwealth of Massachusetts, Middlesex Superior Court, Civil Action No. 99-816

COMPLAINT

1. This action arises out of (a) breaches of an employment agreement between Raytheon Company ("Raytheon") and 21 of its employees, (b) breaches of Raytheon's employee policy, and (c) misappropriations of trade secrets. Specifically, John Does 1 -21 a/k/a "AT_THE_EDGE," "bobchand," "DitchRaytheon," "h12345678," "HappyCanyon," "harveyhambone," "HSnapperOrgans," "jimbo255," "jo74hns, "onerainone," "rayinsider," "rayman_mass," "RaytheonVeteran," "RSCDeepThroat," "Rtn_RIF," "SadNTexas," "smokenjoe_97," "snowbawl98," "west_ray_com," "Winstoncar," and "xmtrman," (collectively, "the defendants") upon information and belief employees of Raytheon, violated employment agreements, Raytheon employee policy, and G.L. c. 93, 42, when they posted certain Raytheon proprietary and confidential information on the Internet. As a result of these breaches of duty and other violations of law by the defendants, Raytheon has suffered injury, including harm to its business reputation.

PARTIES

2. Raytheon is a Delaware corporation with its principal place of business at 141 Spring Street, Lexington, Massachusetts 02173.

3. Upon information and belief, the defendants are employed by Raytheon.

JURISDICTION AND VENUE

4. This Court has subject-matter jurisdiction over this action pursuant to G.L. c. 212, 4 and G.L. c. 93, 42A.

5. This Court has personal jurisdiction over the defendants pursuant to G.L. c. 223A, 2, 3.

6. Venue is proper in this Court pursuant to G.L. c. 223, 1.

FACTS

A. The Employment Agreement

7. All Raytheon engineering employees enter into an Employee Agreement With Respect To Inventions And Other Intellectual Property (the "Employee Agreement"). The Employee Agreement governs the use and disclosure of Raytheon proprietary and confidential information. A copy of the Employee Agreement is attached hereto as Exhibit 1.

8. Under the Employee Agreement, "Raytheon Proprietary Information" includes, in addition to information concerning Raytheon products, "information concerning Raytheon's ... marketing plans or proposals, all to the extent that such information is not readily or generally known outside of Raytheon...." In consideration of an employee's initial and continued employment with Raytheon, the Employee Agreement further provides that: "[t]he Employee shall not ... divulge to anyone ... any of said Raytheon Proprietary Information, or said confidential or proprietary information or material of any third party ... unless duly authorized in writing by an Officer of Raytheon."

.9. Upon information and belief, some or all of the defendants entered into this Employee Agreement.

B. The Employee Policy

10. On or about August 26,1996, Raytheon instituted a company-wide policy entitled Control of Company Most Private, Raytheon Proprietary, And Competition Sensitive Information 38-0052-110 (the "Employee Policy"). The Employee Policy was designed to establish procedures for the safeguarding, distribution, and disclosure of Raytheon's proprietary and confidential information.

A copy of the Employee Policy is attached hereto as Exhibit 2.

11. Under this company-wide Employee Policy, all proprietary information designated as "Company Most Private, Raytheon Proprietary and Competition-Sensitive ... shall not be released outside the Company without appropriate authorization." Raytheon classifies as "Company Most Private," information regarding significant changes to Raytheon's facilities and business units (including information regarding business restructuring, acquisition plans and downsizing), plans for the development and marketing of new products, financial forecasts, operating budgets and sensitive human resources data. Raytheon classifies as "Raytheon Proprietary," information regarding bid and proposal data (including the award of contracts) and routine human resources information. Pursuant to the Employee Policy, "[a]ll employees" have a duty to "protect Company Most Sensitive, Raytheon Proprietary, and Competition Sensitive information from unauthorized disclosure."

12. Upon information and belief, as employees of Raytheon, the defendants are bound by the Employee Policy and may not disclose any of the above types of information without prior written authorization.

C. The Internet Message Board Postings

13. The Internet World Wide Web site Yahoo! maintains a variety of message boards dedicated to various topics. One of these message boards is dedicated to topics concerning Raytheon (the "Message Board"). Raytheon has no affiliation with, and exercises no control over, the Message Board.

14. The Message Board is located at the following Uniform Resource Locator ("URL") internet address: http://messages.yahoo.com/?action=t&board= yahoo.65.04.7080411:

15. Between March 25, 1998 and the present (the "relevant period"), the defendants improperly disclosed certain Raytheon proprietary and confidential information on The Message Board. Specifically, the defendants improperly disclosed the following information:

[Exhibit numbers, which appear in the Complaint as filed, have been deleted here]

Author Date Message No. Information
AT_THE_EDGE 11/26/98 2316 Disclosure of a bid proposal
bobchand 9/15/98 622 disclosure of inside financial issues
DitchRaytheon 10/21/98 1386 disclosure of pending company disvestitures
h12345678 4/30/98 95 disclosure of pending contract award
HappyCanyon 10/7/98 868 disclosure of projected earnings
HappyCanyon 10/18/98 1283 disclosure of projected earnings
HappyCanyon 10/19/98 1303 disclosure of projected
harveyhambone 9/28/98 722 disclosure of internal manpower projections
HSnapperOrgans 12/2/98 2394 comments on contract performance
HSnapperOrgans 2499 2499 comments on contract performance
jimbo255 10/13/98 1097 disclosure of internal manpower projections
jo74hns 10/24/98 1494 disclosure of internal manpower projections
jo74hns 1/24/99 3751 disclosure of projected profits/bonuses
jo74hns 1/25/99 3796 disclosure of human resources information
onerainone 9/17/98 632 disclosure of internal manpower projections
rayinsider 8/26/98 511 disclosure regarding pending union contract
rayinsider 8/27/98 516 disclosure regarding pending union contract and foeign contract award
Rayman_mass 8/27/98 1385 disclosure of company divestiture
Raytheon Veteran 6/30/98 267 disclosure of inside financial issues
RSCDeepthroat 11/1/98 1735 disclosure of projected profits
RSCDeepthroat 1/25/99 3770 disclosure of inside financial issues
Rtn_RIF 10/21/98 1324 disclosure of projected earnings
SadNTexas 11/1/98 1734 disclosure of inside financial issues
SadNTexas 11/12/98 2025 disclosure of company divestitures
smokenjoe_97 3/25/98 62 comments on contract performance
snowbawl98 9/3/98 582 disclosure of inside financial issues
west_ray_com 10/14/98 1136 disclosure of internal manpower projections
Winstoncar 9/4/98 590 disclosure of inside financial issues
xmtrman 8/12/98 468 disclosure of pending contract award

COUNT I

(Breach of Contract)

16. Raytheon repeats and realleges paragraphs 1 through 15 of this Complaint as if fully set forth herein.

17. Upon information and belief, Raytheon and some or all of the defendants entered into an Employment Agreement which provided that the defendants "shall not ... divulge to anyone ... any of said Raytheon Proprietary Information, or said confidential or proprietary information or material of any third party ... unless duly authorized in writing by an Officer of Raytheon."

18. Upon information and belief, no Officer of Raytheon authorized the defendants to disclose Raytheon's internal information regarding inside financial issues, human resources information, internal manpower projections, potential or actual company divestitures or acquisitions, company contract performance, company contract awards, company profit projections, company earnings, or similar information.

19. The disclosure by the defendants of Raytheon's inside financial issues, human resources information, internal manpower projections, potential or actual company divestitures or acquisitions, company contract performance, company contract awards, company profit projections, company earnings, or similar information violated the Employment Agreement.

20. Raytheon has suffered irreparable, direct, and consequential harm as a result of the breach by the defendants of the Employment Agreement and is entitled to damages therefor.

COUNT II

(Breach of Employee Policy)

21. Raytheon repeats and realleges paragraphs 1 through 20 of this Complaint as if fully set forth herein.

22. Upon information and belief, as a condition of their employment, the defendants were and are obligated to protect Raytheon's Company Most Secret, Raytheon Proprietary, and Competitive Sensitive information from unauthorized disclosure.

23. The defendants breached the Employee Policy and, upon information and belief, therefore breached the terms of their employment, by posting Company Most Secret, Raytheon Proprietary, and other confidential information on the Message Board.

24. Raytheon has suffered irreparable, direct, and consequential harm as a result of the breach by the defendants of the Employee Policy and is entitled to damages therefor.

COUNT III

(Misappropriation of Trade Secrets G.L. c. 93, 42)

25. Raytheon repeats and realleges paragraphs 1 through 24 of this Complaint as if fully set forth herein.

26. Upon information and belief, the defendants have obtained Raytheon's trade secrets pursuant to their employment relationships with Raytheon.

27. The defendants have used Raytheon's trade secrets for the benefit of themselves and unknown others, and such use constitutes misappropriation of Raytheon's trade secrets.

28. Raytheon has taken reasonable steps to protect its trade secrets by instituting internal company policies and procedures regulating the access to, designation of, and dissemination of its proprietary and confidential information, and by other means.

29. Raytheon has the right to exclusive ownership, enjoyment, and use of its trade secrets.

30. The defendants continue to irreparably harm Raytheon by such misappropriation of trade secrets.

31. Raytheon has suffered direct and consequential harm as a result of the defendants' misappropriation of Raytheon's trade secrets, and is entitled to damages therefor.

COUNT IV

(Prayer for Injunctive Relief-G.L. c. 93, 42A)

32. Raytheon repeats and realleges paragraphs 1 through 31 of this Complaint as if fully set forth herein.

33. By posting Raytheon's proprietary and confidential information on the Internet, the defendants have misappropriated Raytheon's trade secrets.

34. Raytheon is an aggrieved party pursuant to G.L. c. 93, 42A.

35. Raytheon is entitled to injunctive relief restraining and enjoining the defendants from taking, receiving, concealing, assigning, transferring, copying or otherwise using or disposing of Raytheon's trade secrets.

WHEREFORE, Raytheon prays that judgment be entered by this Court in its favor against the defendants as follows:

(i) Awarding such compensatory and consequential damages to Raytheon as are appropriate, plus interest and costs;

(ii) Awarding double damages pursuant to G.L. c. 93, 42;

(iii) Permanently enjoining the defendants from continuing to disclose via the Internet, or any other means, Raytheon's proprietary and confidential information;

(iv) Awarding Raytheon its attorney fees and expenses; and

(v) Awarding such other and further relief as is just and proper.

RAYTHEON COMPANY

By its attorneys,

David B. Bassett (BBO #551148)

Jeffrey C. Morgan (BBO #634505)

Hale and Dorr LLP

60 State Street

Boston, MA 02109

(617) 526-6000

Dated: February 1, 1999

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