Contour Data Solutions is suing Gridforce and its parent company NAES over stealing IT system

Contour Data Solutions is a Managed IT Service provider with Backup, database, disaster recovery and help desk support services. It is a prominent name in the industry, though its scale is not large—the company issuing its client Gridforce and Gridforce’s parent company NAES. According to CRN, NAES and CDW are stealing an IT system developed by CDSN.

The software solution was designed for Gridforce, but the company was still using the software without prior notice to the manufacturer once the contract period was over. In terms of legalisation, it is a breach of contract and can be seen as fraudulent activity. NAES/Gridforce asked CDW to finish the ‘lift and shift’ even though they knew the concerned activities.

The small IT solution provider suing two of its biggest clients and channel partner for stealing intellectual software property is not something the court will ignore. Doylestown, Pa.-based IT service provider CDs filed two complaints against its former clients. The second amended verified complaint is taken to the US District Court. The Eastern District of Pennsylvania is keen to take action against the companies filed for illegal possession of software out of contract and using them continuously without confronting the provider.

Though news channels tried to get a statement from the companies, they pointed out to lawyers for comments and did not reply to the requests made properly. The lawsuit is known as civil action NO. 2:20-cv-03241-CMR.

In 2013, Gridforce approached Contour Data Solutions to build software from the ground up. The requirement was to build up an original IT system to serve as a utility for the company. It had to meet all the regulations and requirements. During a meeting in 2014, they signed a managed master services agreement also known as MMSA.

Misappropriated IT on the ‘Data Migration’ project was received warmly by CDS as they started working on the foundation. Troutman Pepper Hamilton Sanders filed a trade secret lawsuit for CDW. Even being a technology company providing hardware and software support, the ethic to undercut one another also affects customers and their outlook on the companies.

Nevertheless, Gridforce Energy Management, along with other defendants, participated in the Pennsylvania Eastern District Court hearing on Wednesday. The case 2:21-cv-05209 was presented for Contour Data Solitons LLC v. Gridforce Energy Management LLC. When Law.com surfaced the news, it instantly received attention from the media partners and news outlets. Just filled cases, previously running issues, state of lawsuits and legal information’s are regularly published on Law.com as part of their ongoing effort to bring judicial decisions in front of a regular audience.

NAES on a post shred on 10th November 2021 ‘PRC- 005 – Are we there yet?’ written by senior NERC Readability Compliance Specialist Will White. The regulations are already tough, and with over the 6-year period of closely monitoring the implantations plant, the standard is pretty straightforward. However, it is the most violated O&P today and is rather challenging to consume the lengthy implementations.

CRN talked descriptively about the Gridforce and CDS management system, and they could no longer use intellectual property out of contract, whether it is the distinguished IT system. MMSA was signed for a three-year contract and one year of automatic billing. The billing would stop itself if Gridforce or Contour stopped using the service.

Gridforce said to Contour that they could not afford the upfront costs and agreed to pay $128,775. It also includes a monthly payment of $79,804.27 for five years. Gridforce decided to increase the $100,999.38 and signed a 60-month contract with CDS.

NAES confirmed to terminate the MMSA with Contour in December 2019, and since then, they started the work on their own, resulting in over $400,000 lawsuit.