Database-as-a-service startup Tessell, founded by three ex-employees of Nutanix, is being sued by Nutanix for allegedly copying its Era database management product. Nutanix claims that the founders used its facilities, equipment, and source code to develop Tessell’s product while still employed at Nutanix. After leaving the company, the trio launched Tessell with similar features to Era, prompting Nutanix to investigate and uncover the alleged IP theft.
The lawsuit, filed in a federal district court in northern California, accuses the three founders of breaching their contracts with Nutanix by using proprietary information to start Tessell. It also alleges that Tessell knowingly utilized copyrighted code without authorization and infringed on patents in its products. One of the three founders, Bala Kuchibhotla, had previously settled an insider-trading complaint with a US financial watchdog.
Nutanix’s chief legal officer, Tyler Wall, expressed shock at the behavior of the former employees and the extent of the information they took from Nutanix to benefit Tessell. The company believes in fair competition and has filed the lawsuit to address the alleged misconduct and protect its intellectual property rights.
Tessell and Kuchibhotla have not responded to requests for comment on the lawsuit. Nutanix plans to present evidence to support its claims in court and seek justice for the alleged theft of its source code and breach of contract by the former employees and Tessell.
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https://www.theregister.com/2024/03/21/nutanix_tessell_lawsuit/