Digiland and Esys in court over customer records

Digiland and Esys in court over customer records

A legal stoush over customer records between rival distributors has spilled into the public domain.

Digiland Pty Ltd has written to customers and placed advertising quoting part of a judgement prohibiting Esys Integrated Pty Ltd from using Digiland customer databases. Esys executives, on the other hand, say they have never used the databases, but consented to the order to avoid legal costs.

Digiland last week sent letters to about 1000 of its system builder customers, and placed a full page advertisement in ARN, quoting an order from the Supreme Court of NSW that instructed Esys "to remove all Digiland customer databases in their possession".

The Digiland ad read: "The orders against Esys and two former Digiland employees were obtained after Digiland became aware that its competitor had possession of its databases."

According to Justice Austin’s judgement on July 16, the Esys employees consented to an order restraining them from using or copying the information without admitting that they had used Digiland’s confidential information.

In an affidavit, Esys managing director, Ashish Kapahi, had told the court that the company had received the Digiland database by mail, but that it had been deemed "not relevant" and had been destroyed without being used.

The court order, made on July 16, stated that Esys be "restrained from using in any way or copying the confidential information of Digiland, including the key database of Digiland and the Customer Manager database of Digiland".

The decision to publicise the case by writing to customers and advertising in ARN had been taken to inform customers of the situation, Digiland marketing director, James Macbeth, said.

In a statement on behalf of Esys, general manager of components, George Skaf, said the letters sent to Digiland customers contained "inaccurate, misleading and defamatory accusations".

He alleged: "Digiland has been circulating statements suggesting that Esys has used confidential information from Digiland’s customer databases. Those suggestions are not true.

"However, to avoid incurring large legal costs, and whilst denying that it has used Digilands databases, Esys agreed to the Court making an order that it not do so. It agreed to the order because it did not have Digiland’s databases, had not used them, and did not intend to do so."

Digiland won costs in the proceedings, and is also pursuing a claim for damages against Esys.

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