f

No. 02 C 4721 Page 19

The clean room procedure does not remedy the irreparable harm. First of all, the clean
room exercise actually gives credence to plaintiffs arguments that the parser was very difficult
to create as it took defend:nts’ teams about a year to write parser code without the help of the
EDBA code. Secondly, the clean room exercise only involved the parser, and not other
potential infringement by defendants. Finally, the QCDB2 version containing the cleansed
source code is not yet on the market. The fact that Quest plans to release such a product does
not eliminate the harm suffered from the sales of the infringing product.

The balance of harms fs also clearly in favor of plaintiff. Quest has admitted to some
use of the EDBA code, and the evidence shows that plaintiff is likely to prove material
infringement. The harmo Quest’s business and reputation is clearly offset by the irreparable
harm it caused to CA through the use of an infringing product.

C. Public Interest

The granting of an injunction is in the public interest. The public is generally
interested in upholding intellectual property rights, encouraging creativity and innovation,
and rewarding the investment of resources in these pursuits. Moreover, the public is unlikely
to suffer any harm from the removal of QCDB2 from the market as there are multiple
competing products available to consumers.

III. Objections to the Mzgistrate’s Order

On April 5, 2004, Magistrate Judge Mason ordered defendants to produce certain e-
mails and transcribed phone messages, even though he found them to be attorney-client
communications. Magistrate Judge Mason found that defendants’ trial counsel, Mike
Newman, had communicated with the team involved in the clean room exercise attempting to

rewrite the parse source code, Defendants now challenge that order, arguing that the



No. 02 C 4721 Page 13

distributed by the Free Software Foundation (FSF). The EDBA code contains a string
indicating that it uses “GNU Bison version 1.25.” Bison is open source code, meaning that it
is distributed by the FSF at no cost. Any user of that code is, however, bound by the terms of
the GNU General Public License (GPL). The GPL puts restrictions on the modification and
subsequent distribution of freeware programs. Essentially, once the programs are freely
released into the public domain, the creators intend for them to stay free. Defendants claim
that plaintiff’s are violating the GPL by attempting to claim a copyright in a program that
contains Bison source code.

Defendants’ argument fails because plaintiff is not attempting to claim a copyright in
the Bison source code. Iastead, the creators of EDBA used the Bison utility program to create
the parser source code. While doing so they made modifications to the Bison program to suit
the specific task of creating a parser to use in database administration software. The GPL
would prevent plaintiff from attempting to claim a copyright in that modified version of Bison.
The output of that program (the parser source code), however, is not subject to the restrictions
of the GPL — it is the creation of plaintiff. FSF explicitly allowed for such commercial use of
the output by adopting the following exception to the GPL:

/* As a special exception, when this file is copied by Bison into a Bison output

file, you may use that output file without restriction. This special exception was

added by the Free Software Foundation in version 1.24 of Bison */

There is no indication that Mackowiak, or any other Platinum or CA employee, used a version
of Bison older than 1.24, Therefore, even though the output lines contain some of the utility
source code, CA is free to use the output files without restriction, as allowed by the exception
to the GPL.

Defendants’ claims of copyright fraud, and/or misuse, are also largely baseless. While


»

No, 02 C 4721 Page 4

Quest and the individual defendants. CA wrote another letter to Quest in March 2002,
referring to this new information, and eventually filed this suit in July 2002. There is evidence
that defendants, including Mackowiak, erased, or attempted to erase, files on their computers
containing parts of the ED BA source code, after receiving the letters from CA.

Upon learning that the source codes for EDBA and QCDB2 were arguably similar, the
defendants engaged in a “clean room” exercise to rewrite the parser code. They attempted to
write the source code frora scratch while closing the room to improper outside information.
That lengthy process was completed on January 9, 2004, and Quest plans to incorporate the
new code into QCDB2 version 4.0.1.

DISCUSSION

I. Defendants’ Motions to Strike Testimony and Reply Brief of Martin Hubel

Defendants moved to strike the testimony of plaintiff’s source code expert Martin
Hubel pursuant to Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). In
response to that motion, Elubel submitted a reply declaration addressing the arguments raised
in the initial motion to sti:ike, which defendants also seek to strike.

A. Motion to Strike Hubel’s Testimony

Plaintiffs introduced Hubel’s declaration in an attempt to show that Quest copied large
parts of the EDBA source code in QCDB2, and that Quest used commercially valuable
information that CA knew, but was not generally known to the public or relevant community.
Defendants raise four general arguments in favor of striking the testimony of Hubel. First,
they claim that he does not have sufficient qualifications to serve as an expert witness. Second,
they argue that Hubel’s raethodology in comparing the source codes was fatally flawed. Third,

they point out substantive errors made by Hubel in preparing his report. Finally, defendants


‘

No. 02 C 4721 Page 20

magistrate judge improperly found that the communications were “at issue,” that he
improperly determined that the communications were necessary to evaluate the integrity of
the clean room, and that the order was inconsistent with a prior ruling concerning plaintiff's
counsel Norm Rich.

Defendants attempt to use the clean room process as a defense to the claims seeking
injunctive relief, and as a way to mitigate any harm caused by the copying of CA’s source code.
The clean room, however, is a valuable exercise only if procedures are followed to make
certain that no improper material passes through the walls. Defendants’ counsel Newman
communicated with the clean room team during their exercise. He also had access to the
EDBA source code because of his participation in this litigation. Though we have no reason
to believe that Newman actually contaminated the clean room in any way, we agree with
Magistrate Judge Mason that plaintiff has the right to inspect the questionable
communications. When defendants chose to use the clean room exercise as a defense, they
implicitly represented that the clean room’s walls were effective.

Defendants argue that this is an improper application of the “at issue” doctrine because
that applies only when a party attempts to wield specific privileged communications as a
sword, while hiding behind the privilege as a shield. That is essentially what defendants seek
to do here by claiming that the clean room process was secure, while also preventing plaintiff
from reviewing communications that passed through its walls. While the attorney-client
privilege is certainly worthy of protection, we reiterate that Magistrate Judge Mason’s order
encompasses only conversations from Newman to the clean room team and not those
conversations leaving the clean room.

Finally, we find no inconsistencies between the order requiring these disclosures and



4

No. 02 C 4721 Page 17

the plaintiff to show that defendants copied protected elements of the source code by removing
unprotected and essential programs from the code, While the plaintiff has not formally
performed such a test, Hubel’s report does attempt to break down the source codes into their
functional parts and compare the two codes. For example, EDBA’s analysis engine contains
anumber of “rules” as to how it processes each object. These rules are the fundamental blocks
of the analysis engine. Hubel has found similarities in 53 of these rules. Again, even allowing
for the fact that these rules are a good way to organize the program and may have been

developed independently, this is a substantial amount of similarity between the two programs.

Hubel also found similar functions in the job schedulers of the two programs. He
estimated that the first version of QCDB2 contained 8 identical functions in that area, one of
which remains in version 3.0. Likewise, in addition to containing many identical lines of code,
the parsers in the two programs function in a similar manner, For example, the parser
contains a number of “reduction functions” that process certain parts of the SQL statements.
After writing these functions, a CA employee created a manual detailing how they operate that
eventually fell into Quest's hands. QCDB2, though it does not use identical source codes, uses
a similar technique in implementing the reduction functions. These conclusions by Hubel
indicate that a formal AI'C test is likely to show substantial similarities between EDBA and
QCDB2.

3. Summary

Itis premature to attempt to detail exactly how much of CA’s intellectual property was
used by Quest in the creation of QCDB2. The evidence shows, however, that CA fs likely to
demonstrate that it controlled valuable information relating to the creation of database

administration software and, particularly, for administration software for IBM’s DB2. Even


* No. 02 C 4721 Page9

expended in developing the information; and (6) the ease with which the information could be
acquired by others. Jd. at 722.

Despite defendants’ claims to the contrary, the entire EDBA source code may qualify
for trade secret proteciion. See Unix Systems Laboratories, I ley Software Desi;
Inc., 27 U.S.P.Q. 2d 17.21, 1733-34 (D. N.J. 1993) (“even if all of the pieces of the 32V code had
been thoroughly revealed in the publicly available literature, the overall organization of the
code might remain a trade secret unless it too had been disclosed.”) There Is also no merit to
defendants’ argument that the specific aspects of the code are not protectable because they
were not novel ideas. Though parsers, analysis engines and job schedulers are well known and
commonly used in programming, they were not widely used in database administration
software. Moreover, the specific versions of these applications as they are used in EDBA are
protectable -- plaintiff is not attempting to claim intellectual property rights in the generic
concepts,

The evidence indicates that these applications, as used by CA and the EDBA source
code as a whole, were valuable trade secrets. When IBM released DB2, there was clearly a
market for administration software that would be compatible, and the company to release the
first software would have a competitive advantage in that market. Because it had already
created EDBA, Platinum had resources to take advantage of that that were not widely
available to other software producers.

The evidence also shows that Platinum (and then CA) took steps to protect this
information from falling into the hands of outsiders. Confidentiality policies were set forth
in employee manuals. These policies prevented outsiders from gaining access to source code

and limited access to the code within the company. Employees were reminded of these


No. 02 C 4721 Page 6

The methodology used by Hubel in searching for copying was reliable. There does not
appear to be any perfect way to compare millions of lines of source codes, especially in a case
like this where the plaintiff's claim both literal and non-literal copying of the code. Hubel
began by attempting ‘to use software programs to count the number of identical lines in the two
codes. He claims that these programs were both over- and under-inclusive and returned
results that did not make sense. He then manually compared the source codes, directing his
attention to the areas of the program in which CA (and its attorneys) believed copying would
be found. These suspicions arose because the code areas in question had been developed by
the individual defendants. This is similar to the approach undertaken by defendants’ source
code expert, who used a software program to isolate some areas of code and then moved on to
a manual analysis. While the direction by CA to specific parts of the code is certainly open to
criticism by defendant's, this goes to weight of the conclusions and does not undermine the
overall methodology.

In searching for non-literal copying of the source code, Hubel looked for the functional
rules of the EDBA software. He then compared these to the rules used in Quest’s products to
see if they were the seme. While it was not formal, this methodology is essentially that
endorsed by the Second Circuit in Computer Associates, Intern. Inc. v. Altai, Inc., 982 F.2d

693, 706-12 (24 Cir. 1992). See also Gates Rubber Co, y. Bando Chemical Industries, Ltd., 9
F.3d 823, 834-42 (10% Cir, 1993). In Computer Associates, the court approved the use of the

“abstraction-filtration-comparison” (AFC) test, whereby non-literal copyright infringement
is proven by reducing a computer program to its basic abstract levels, filtering out the
functional elements and non-proprietary information, and comparing the remaining elements.

While defendants and their experts disagree with his conclusions, this is basically what Hubel


No. 02 C 4721 Page S

claim that he failed to take into account many key issues when reaching his conclusions.

At this stage of the litigation defendants’ motion to strike is largely unnecessary as they
have the opportunity to challenge or rebut the opinions presented in Hubel’s report. See Fenje
y. Field, 301 F. Supp. 2d 731, 789 (ND. Ill. 2003). In any case, Hubel is qualified to present
opinions regarding the source code that assist the court in ruling on the preliminary injunction
motion. This does not, of course, prevent defendants from seeking to prevent Hubel from
testifying should this matter go to trial.

The admissibility of expert testimony is governed by Federal Rule of Evidence 702, and
the principles set forth by the Supreme Court in Daubert. Smith y, Ford Motor Co., 215 F.3d
713, 717-18 (7" Cir. 2000), Evidence presented by an expert must be both relevant and
reliable. Id. at 718, quoting Daubert, 509 U.S. at 589. The district court serves as a
“gatekeeper,” determining whether the knowledge is helpful. Id. The simple fact that a
witness has never testified as an expert before is not enough to disqualify him. Hecny
Transportation, Inc. y. Clau, 2003 WL 21823610, *1 (N.D. DL).

While Hubel has significant experience working with database systems and with DB2
in particular, he does nor: have the same level of expertise in C or C++. Much of his report,
however, deals with the interaction between the database administration software and DB2,
using the DB2 language SQL, with which he is clearly an expert. It may be extremely difficult
to find an expert who is knowledgeable in both sets of languages.’ Moreover, the report
indicates that Hubel has at least some familiarity with C and C++ and that, when necessary,
he was able to refer to reasonable sources for assistance, While this approach is not perfect,

it allowed Hubel to prepare a report on the source codes that proved helpful to the court.

For example, while he Is not the subject of this motion, defendants’ source code expert Bruce
Webster, while well-versed ir: C and C++, has uo expertise in SQL.


No. 02 C 4721 Page 18

though they used previously existing ideas, the overall design of the EDBA source code and the
parser, analysis engine and job scheduler used in the EDBA, are all likely protectable secrets.
They are also likely to show that defendants improperly used this information. Quest and its
employees clearly had access to the source code and other related information. Despite its
claims of building the code from scratch, the QCDB2 program shares a number of
characteristics with the EDBA program. A closer look at the programs shows that QCDB2
contains many source cocie lines and functions found in EDBA. While many of these
similarities may be explained by innocent factors, there are simply too many to be explained
away. For those reasons, CA is likely to prevail on the merits of its intellectual property
claims.

B. Irreparable Harm/Halance of Harms

There is a presumption of irreparable harm to the plaintiff in cases of trade secret
misappropriation and copyright infringement. See ISC-Bunker Ramo Corp, vy. Altech, Inc.,
765 F. Supp. 1310, 1329 (N.D. Til. 1990), The defendants may rebut this presumption by
demonstrating that plaintiff will not suffer any harm if the injunction is not granted. Plaintiff
does not need to market a competing product in order to demonstrate irreparable harm.
Midway Mfg. Co. v. Arctic Intern. Inc,, 547 F. Supp. 999, 1014 (N.D. Dil. 1982). Platinum and
CA expended significant resources in their attempts to create administration software for DB2.
It would be nearly impossible to determine the dollar value of Quest’s head start in that
market. They filed this lawsuit seeking an injunction shortly after receiving credible
information indicating that defendants were infringing. If Quest is allowed to continue
marketing QCDB2 it will become more difficult for CA to become competitive in the market

and make damages even more difficult to assess.


No. 02 C 4721 Page 3

dented.
IL. Plaintiff's Motion jor a Preliminary Injunction

CA seeks to enjoin defendants from using, selling, licensing, distributing, and/or
marketing QCDB2, o1 any other similar product derived from the EDBA software code,
arguing that QCDB2 infringes CA’s copyrights and incorporates CA’s protectable trade
secrets. CA bears the burden of demonstrating that it has a reasonable likelihood of prevailing
on the merits of its claim, that it has no adequate remedy at law, and that it will suffer

irreparable harm absent an injunction. AM General Corp. v. DaimlerChrysler Corp., 311

F.3d 796, 803-04 (7 Cir. 2002). If CA meets those burdens, the court must consider any
potential harm to defendants and whether injunctive relief would harm or foster the public
interest. Id, at 803-04,

A. Likelihood of Success on the Merits

1. Trade Secret Misappropriation

The Mlinois Tracle Secrets Act (ITSA) allows the court to issue an injunction in the case
of “actual or threatened! misappropriation of a trade secret.” 765 ILCS 1065/3(a); PepsiCo,
Inc. v. Redmond, 54 F.3d 1262, 1267 (7" Cir. 1995). In order to prevail, CA must establish that
ithas a strong likelihood of demonstrating that (1) the source code is a protectable secret under
the ITSA, and (2) defendants used the source code in the course of business. Learning Curye
Toys, Inc. v. PlayWood Toys, Inc, 342 F.3d 714, 721 (7" Cir. 2003). In determining whether
something {s a trade secret, Hlinois courts look to six guidelines: (1) the extent to which the
information is known outside of the business; (2) the extent to which the information is known
to employees and others ‘within the business; (3) the measures taken to protect the information;

(4) the value of the information to competitors; (5) the amount of time, money and effort


&

‘Mirute'Drder Form (06/97)

United States District Court, Northern District of Ilinois

Nir Magee Judge James B. Moran “Than Aigeed Judge
CASE NUMBER 02 C 4721 DATE 6/24/2004

CASE COMPUTER ASSOCIATES INTERNATIONAL vs. QUEST SOFTWARE, INC., et al

TITLE

[in the following box (a) indicate the party filing the motion, e.g., plaintiff, defendant, 3rd party plaintiff, and (b) state briefly the nature
MOTION: of the motion being presented.
MEMORANDUM OPINION AND ORDER
DOCKET ENTRY:
() o Filed motion of'[ use listing in “Motion” box above.)
(2) og Brief in support of motion due____.
(3) a Answer brief to motion due___. Reply to answer briefdue____.
: (4) Oo Ruling/Hearing on__setfor__at
(5) Qo Status hearingfheld/continued to] [set for/re-set for]on__——sset for at_
(6) o Pretrial conference[held/continued to] (set for/re-set for]on__—_ssetfor__—s—sat_—
(7) Qo Trial[set for/re-set for]on at
(8) Oo [Bench/Jury trial] [Hearing] held/continued to____—_at
9) Q This case is dismissed [with/without] prejudice and without costs[by/agreement/pursuant to}
OOFRCP4(m) (J Local Rule 41.1 CFRCP41(a)(1) {I FRCP41(a)(2).

ao) ff [Other docket enty] | Enter Memorandum Opinion And Order. Defendants’ motions to strike the

ay

testimony of Martin Mubel and to strike Hubel's reply brief are denied and their objections to the
magistrate’s order are overruled. Plaintiff's motion for a preliminary injunction will be granted upon the
submission of an appropriate draft order and bond. Status hearing set for 9/14/04 at 9:15 a.m.

b | [For further detail see order attached to the original minute order.)

No notices required, advised in open court.
No notices required.

Notices mailed by judge's stalf.
Notified counsel by telephone.
Docketing to mail notices.

Mail AO 450 form.

j ‘strate j sia .
Copy to judge/magistrate judge. synod a3

courtroom 10 9 aa nZ nog

LG deputy’s
ime recelvel \
Ducine err A~OS VP ans upaysne

initials



No. 02 C 4721 Page 11

The forensic records also show that defendants repeatedly accessed the EDBA source
code while developing their program. At the very least, the EDBA code acted as a guide to the
defendants and made it easier for them to develop a competing product. This alone, even
without actual copying, likely rises to the level of misappropriation. See Affiliated Hospital
Products, Inc. v. Baldwin, 373 N.E.2d 1000, 1006 (“[e]ven accepting their dental of any literal
copying of MPL drawings, these drawings aided defendants in the design of Hypomed
machinery, if only to demonstrate what pitfalls to avoid”). The forensic analysis shows that
defendants went beyond this, attempting to erase files from computers in order to cover up the
use of the EDBA code. Again, that behavior by defendants may constitute evidence of
misappropriation. See RKI, 177 F. Supp. 2d at 875,

Finally, and most importantly, Quest’s product bears a strong relationship to CA’s.
QCDB2 uses a parser, an analysis engine and a job scheduler, all of which are similar to those
used by EDBA. These applications, while, again, not novel, do not appear together in the
competing software, ‘(hese similarities exist despite the fact that Quest claims to have
developed the QCDB2 source code from scratch. These similarities, combined with the
unfettered access of defendants to plaintiff’s source code, give strong support to plaintiff’s
claims of trade secret misappropriation.

2. Copyright Infiingement

Federal law gives district courts the power to issue an injunction to prevent or restrain
copyright infringement. 17 U.S.C. § 502, CA must prove its ownership of a valid copyright

and the copying of original elements by the defendants. Feist Publications, Inc. y. Rural

Telephone Service Co., Inc., 499 U.S. 340, 361 (1991).
a. Valid copyrights


1

No. 02 C 4721 Page 10

obligations when leaving the company. Access to CA’s Oak Brook facility was limited to
employees with a security key card. The source code was never distributed with programs or
made available to the general public. These procedures demonstrate reasonable efforts to keep
the source code secret — all that is required under the ITSA. Learning Curve Toys, 342 F.3d
at 725, Moreover, the deposition testimony of defendants indicates that they were aware of
the measures taken by plaintiff and knew that the source code material was intended to remain
secret, Quest maintains that it explicitly ordered its new employees to honor confidentiality
agreements with previous employers.

Defendants manage to point out aspects of plaintiff’s procedures that could have been
stronger. Employees were allowed to work from home (as they are at Quest); the employee
manual was written in a lighthearted manner; and another former Platinum employee may
have taken some EDI3A source code with him to a new job. Even if this demonstrates some
weaknesses in Platinum and CA’s confidentiality procedures, the ITSA requires only
reasonable measures, not perfection. Learning Curve Toys, 342 F.3d at 725. CA’s EDBA
source code therefore contains protectable trade secrets under the ITSA.

The evidence also shows that plaintiff has a strong likelihood of proving that defendants
misappropriated these trade secrets. The individual defendants were hired by Quest and
assigned to tasks that were nearly identical to those they performed while at Platinum. While
that in itself may have been permissible, Quest put itself at risk by placing the new employees
in situations where the use of protected information was likely. See PepsiCo, 54 F.3d at 1269
(“a plaintiff may prove a claim of trade secret misappropriation by demonstrating that
defendant’s new employment will inevitably lead him to rely on the plaintiff's trade secrets”);

RKI, Inc. v. Grimes, 177 F. Supp. 2d 859, 875-76 (N.D. Il. 2001).


No. 02 C 4721 Page7

did when he broke down EDBA to its basic rules and compared them to those used in the
Quest software,

Defendants also criticize Hubel for failing to research trade secret law and certain parts
of copyright law before opining that certain parts of EDBA were “useful secrets.” Hubel is
clear that useful secrets was a term he invented for purposes of his report, and nothing more.
His role was to apply his knowledge of DB2 to the facts, and to determine which parts of
EDBA made it a desirable software program, and which of these were used by Quest in
developing QCDB2. There was no reason for Hubel to put a specific dollar value on this
information, only to determine what information can reasonably be considered to be valuable
to competitors.

Finally, defendants point to a number of specific, substantive errors in Hubel’s report.
Some of these result from confusion about Hubel’s process. Others are simply typos or
mathematical errors that Hubel admitted at his deposition. In any case, his opinion involves
the comparison of millions of lines of computer source code. As this litigation is still in the
preliminary injunction phase, some errors are inevitable. To the extent that such errors
appear in Hubel’s report, they go to the weight that we give his evidence rather than to the
admissibility.

B. Motion to Strike Hubel’s Reply Declaratio

Defendants also seek to strike the reply declaration of Hubel that the plaintiff filed in
opposition to the original motion to strike. That declaration contains two sections, one
detailing Hubel’s qualifications and one discussing his methodology. Both of these sections
directly respond to arguments raised in defendants’ brief in support of their motion to strike

and do not represent any effort by the plaintiff to introduce new evidence. That motion is


No, 02 C 4721 Page 21

the order preventing clefendants from obtaining conversations between plaintiff and its
attorney Rich, Plaintiff did not (either explicitly or implicitly) place any communications at
issue by asserting copyright claims. Defendants had every opportunity to review the copyright
applications and plaintiff did not rely on any alleged conversations with Rich to help establish
their validity.
CONCLUSION

For the foregoing reasons, defendants’ motions to strike the testimony of Martin Hubel
and to strike Hubel’s reyly brief are denied and their objections to the magistrate’s order are
overruled. Plaintiff's motion fora preliminary injunction will be granted upon the submission

of an appropriate draft order and bond.

JAMES B. MORAN
Senior Judge, U.S. District Court
une 27, 2004,



>

No, 02 C 4721 Page3

to be made to a database. Bisotti created the job scheduler, a tool that ensures that the tasks
requested by the database administrator are accomplished at the proper time.

In the spring of 1999, CA announced that it intended to purchase Platinum. By this
time, Platinum’s EDBA team had made at least some progress towards converting EDBA for
use with DB2. When CA acquired Platinum, many employees, including Wahlgren, were
fired, and others, such as Jenson, Friel, Mackowiak and Bisotti, chose to leave. Quest, who
had decided to write database administration software for DB2 from scratch, hired the five
individual defendants and assigned them to roles similar to (or the same as) those they had in
developing the source code for Platinum.

Despite Quest’s rule prohibiting the new employees from bringing proprietary
information with them to the new jobs, there is evidence that Mackowiak, Wahlgren and
Bisotti brought copies of the EDBA source code to their new positions. There is also evidence
that defendants repeatedly referenced the source code in developing the program for Quest,
In fact, defendants concede that some of the developers had copies of the EDBA source code
to use as a reference while writing their program.

In October 2000. Quest released the first version of Quest Central for DB2 (QCDB2),
a database administration program for DB2. Since then, several new versions have been
released, most recently version 3.0 in May 2003. There are currently four major competitors
in the market for DB2 administration software: Quest, BMC, Embarcadero and IBM. CA
does not sell a competing product.

In early 2000, CA received information indicating that Quest may have portions of the
EDBA source code. Following a letter from CA, Quest denied this allegation. In February

2002, however, CA received an unsigned letter detailing specific uses of the source code by



No. 02 C 4721 Page 14

plaintiff concedes that it did not list all of the third party software in its copyright applications
(only listing previous versions of its own programs), such a disclosure is only necessary when
a party uses a substantial amount of a preexisting work. (Copyright Office Circular 61.)
Defendants’ own expert witness concedes that such third-party work does not constitute more
than 4 or 4.5% of the source code. Again, plaintiff’s use of these preexisting elements is
perfectly acceptable as long as the finished product is an original creation.

Defendants also claim that the date used on the copyright application for EDBA v. 2.2.0
was misleading, Because the effective date of that registration was June 20, 2002, the EDBA
code could not have 3 publication date older than June 20, 1997 (five years earlier), if it was
to enjoy the benefit of a presumption of validity. 17 U.S.C. §410(c). The original application
contained only the yeai: 1997, but was later changed to say December 31, 1997. Plaintiff
maintains that is was very difficult, if not impossible, to determine the exact date of
publication, but that December 31, 1997, is the most accurate date according to the person
most knowledgeable. Even if that date is inaccurate, it would only undermine the presumption
of validity that plaintiff was entitled to. Moreover, such an error would have no effect on the
other registrations that protect the majority of the intellectual property at issue.

Finally, there is nothing to indicate that plaintiff misrepresented its publication of the
1999 code when it confidentially distributed a copy of the work te GAD in May 1999, The
Copyright Act defines publication as “the distribution of copies or phonorecords of a work to
the public by sale or other transfer of ownership, or by rental, lease, or lending.” 17 U.S.C.
§ 101, It is unlikely that confidentially giving one copy to another company would constitute
distribution of the code to the “public.” Even ifit qualified, this publication of the code would

likely only result in a different type of registered copyright (“TX” rather that “TXu”), rather


2

No. 02 C 4721 Page 16

CA’s source code by Quest in QCDB2.

While his estimates differ, Webster (defendants’ source code expert) also found many
lines in QCDB2 versions 1.0 and 3.0 that were identical to those in the EDBA source code,
Defendants claim that these are the result of innocent factors: use of third-party code,
technological restraints and common authorship. As stated above, Webster eventually found
that only about 4.5% of the EDBA code was third-party code. This does not provide an
adequate defense to such a widespread use of CA’s code. Likewise, while technological
restraints undoubtedly shape the creation of any source code, there are simply too many
similarities here to ignore. Both parties concede that similar functions may be expressed in
many ways within the same computer language. While the same programmer is likely to write
programs in similar ways using his/her previous experience as a guide, there are far too many
identical or nearly identical lines appearing in the two source codes (and in the same order)
for the similarities to be a coincidence.

Also, many of the comments from EDBA have been copied into QCDB2. These
comments are not part of the functional code; they instead act only as a guide to future
programmers working with the source code. There would be no reason for two programmers
to use the same language, even if expressing similar comments, but that is the case. For
example, the source code in db2.y lines 002451-002465 is identical to that in udb.y lines002374-
002388. Even creation by the same programmer would not explain the exact replication of
these 15 non-functional lines.

Plaintiff is also likely to prove non-literal copying of the EDBA code. As we discussed
above, the best way to establish a substantial similarity between computer programs is the

AFC test set forth by the courts in Computer Associates and Gates Rubber. This test allows


»

No, 02 C 4721 Page2

BACKGROUND

The creation of computer programs involves writing “source code.” This code may be
expressed in one of several languages that can be read and understood by trained
programmers. Files written in (he languages relevant to this case, C and C+, contain suffixes
(.c and .cpp, respectively) indicating what type of file they are. After a program is written,
these files of source code are converted into executable files with suffixes of .exe or .dUJ.
Computers read and process the executable files, but they cannot be read by humans. When
a customer purchases computer software, he or she typically receives only these executable
files, not the readable source code.

In 1996, Platinum tech nology International, Inc. (Platinum) released its first version of
the software program Enterprise Database Administrator (EDBA). This program allowed
database administrators to automate numerous tasks that would previously have been
extremely time-consuming. Following IBM’s release of its DB2 database, Platinum began the
process of modifying the EDBA source code so as to release a DB2-compatible version.
Because DB2 was (and is) widely used by database administrators, such a program could be
extremely valuable.

The individual defeadants played important roles in both the development of the EDBA
source code and the attempt to adapt it to DB2. Jenson was the manager of Platinum’s EDBA
development lab in Oak Brook, Illinois, and Friel was the head of the EDBA development
team, Mackowiak developed the EDBA parser, a tool that allows the EDBA program to
communicate with the DB2 database by breaking down DB2's language (known as Structured
Query Language, or SQL) into its component parts so that EDBA can understand the

commands, Wahlgren wrote the EDBA analysis engine, which determines what changes need


IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

DOCKETED
COMPUTER ASSOCIATES JUN 2.8 2008

INTERNATIONAL, a Delaware corporation,
Plaintiff,

vs. No. 02 C 4721
QUEST SOFTWARE, INC., a California
corporation, MICHAEL J. FRIEL, an Illinois
resident, DEBRA JENSON, an Ifinois resident,
ROBERT M. MACKOWIAK, an Iinois
resident, ELIZABETH W. WAHLGREN, an
MWinois resident, and FRANK L, BISOTTI,

a Wisconsin resident,

Nee Se ee Se ewer

Defendants,
MEMORANDUM OPINION AND ORDER

Plaintiff Computer Associates International, Inc. (CA) brought this action against
defendants Quest Sovtware Inc. (Quest), Michael J. Friel, Debra A. Jenson, Robert M.
Mackowiak, Elizabeth W. Wahlgren, and Frank L. Bisotti alleging copyright infringement and
trade secret misappropriation. It now seeks a preliminary injunction enjoining defendants
from using, selling, licensing, distributing or marketing Quest Central or any future product
derived from CA’s source code. Defendants filed a motion to strike the testimony of plaintiff's
witness Martin Hubel, a motion to strike Hubel’s reply brief and objections to Magistrate
Judge Mason’s April 5, 2004, order compelling the disclosure of certain communications. For
the following reasons, plaintiff's motion for a preliminary injunction is granted, defendants’

motions are denied, and defendants’ objections are overruled.


No. 02 C 4721 Page 12

CA has registered copyrights in the varfous versions of the EDBA source code and its
components. These registrations are prima facie proof that CA owns valid copyrights. 17
U.S.C, 410(c). Again, defendants argue that CA has no copyright protection for the EDBA
code because it contains elements that were created by third parties. Defendants are correct
that if plaintiff simply reproduces previously existing material, it has no rights to prevent a
third party from doing the same. Here, the EDBA source code admittedly contains some
elements that were developed by other parties and that are publicly available. While CA has
no right to prevent Quest {or any other software manufacturer) from using these parts of the
work that were in the public domain, tt may have a perfectly valid copyright in the
modifications to that third party code and in the finished product —the complete EDBA source
code,

Defendants attempt to characterize plaintiffs claims as similar to those in qad. inc. v.
ALN Associates, Inc., 974 F.2d 834 (7 Cir. 1992), in which the Seventh Circuit affirmed the
district court’s decision to grant summary judgment for the defendant and dissolve an
injunction. In gad, the court found that the plaintiff was attempting to claim a copyright in
a product that was essentially the same as previously existing software. Id. at 838. The court
determined that even though the source code was different the fact that the program functions
were virtually identical made the plaintiffs program a derivative work. Jd. at 838-39. Unlike
the plaintiff in gad, CA. willingly admits that Platinum used elements of preexisting code in
creating EDBA. The use of these elements and the final software product, on the other hand,
was an original creation. The fact that EDBA contains previously known source code (even
hundreds or thousands of lines) does not prevent CA from protecting its creation.

One publicly available program used in the creation of EDBA was Bison, a program


*

No, 02. C4721 Page 15

than an invalid copyright. (See Announcement from the Copyright Office—January 1, 1978).
There is no reason to believe that the different type of registration would have any effect on
this litigation.

b. Copying of original expressions

While the comparisons of the EDBA source code to different versions of the QCDB2
source code are not entirely complete, the evidence gathered so far indicates that plaintiff is
likely to prove that defendants copied original parts of the source code. Plaintiff claims that
defendants infringed on ils exclusive rights to reproduce copies, prepare derivative works and
distribute these derivatives to the public. 17 U.S.C. § 106. CA may prove copying by showing
that Quest had access to its source code and that QCDB2 is substantially similar to EDBA, or
by showing that Quest literally copied the code. Atari Games Corp. v. Nintendo of America
Inc,, 975 F.2d 832, 837-38 (Fed. Cir. 1992).

CA has a strong likelihood of proving literal copying of the source code. First of all,
Mackowilak and Bisotti have both admitted to some use of CA’s source code in QCDB2.
Secondly, while Hubel’s comparison of the codes is not perfect, it shows that a large number
of lines in the QCDB2 source code are identical to those in EDBA. The parser was the subject
of the largest amount of this copying. For example, in the grammar source code of the parser
(db2.y files), Hubel estimates that Quest’s original code contains about 2897 of CA’s 7369 lines.
Likewise, he found that Quest’s code contains 2626 out of 2791 lines of CA’s lexicon source
code (db2.1 files). In version 3.0 of WCDB2 (the version currently on the market),
approximately 2/3 of those source code lines are still being used. In the job scheduler, Hubel
estimates that Quest used 890 identical lines in version 1.0 and that 129 of these lines still

remain in the code. Even if these numbers are not exact, they demonstrate repeated use of