Psytech International Sues Ex-employees, Alleges They Conspired to Steal Its Software and Customers

(BUSINESS WIRE)-- Psytech International (“Psytech”), a leading worldwide provider of psychometric testing and workplace software for employers, announces that it is seeking to enforce its legal rights in several jurisdictions, in order to protect its intellectual property and commercial rights against an alleged unlawful attempt by former employees to copy its unique software and tests, steal its intellectual property and poach its clients.

Psytech’s legal action, filed initially in New Zealand’s High Court last week, is a precautionary measure designed to protect Psytech’s world-leading business. Founded by occupational psychologist Laurence Paltiel in 1991, Psytech provides a wide range of psychometric tests and assessments to global clients in over 30 languages, via its GeneSys system and its new web GeneSys2020 assessment platform.

Users of Psytech’s services include large private and public organisations around the world, including HSBC, Unilever, the Metropolitan Police Service, Australia Post and Bupa.

Psytech’s legal claim is against Podium365 (“Podium”), registered in Auckland but doing business globally. Podium’s co-defendants are its founder Glenn Brown, and Michael Agnew and Michael Rose, all former employees or contractors of Psytech. It is intended that these and other former Psytech staff will also face connected litigation in other jurisdictions as appropriate, where it is claimed that they have conspired to breach Psytech’s copyrights and undermine its business relationships.

The defendants are alleged to have infringed Psytech’s intellectual property rights as well as their own contractual obligations by copying the Source Code for the company’s key GeneSys product, and using Psytech’s Source Code to create a near-identical derivative product under the Podium banner. The Court will hear that they then attempted to sell this product to Psytech’s own clients and distributors, even prior to some of the defendants ceasing to work for Psytech. The proceedings also allege Podium has misled potential clients about both the uptake of its products and empirical support for its tests.

Psytech is seeking an immediate cessation by Podium of its unlawful use of Psytech’s intellectual property, compensation for lost business and reputational damage, and additional damages given the flagrancy of Podium’s conduct.

Laurence Paltiel, Founder of Psytech, said:

“Podium claims on its website that it is ‘committed to raising the standards and ethics of our industry’. Regrettably, our experience of Podium’s leadership and its actions suggests exactly the opposite. It is trading in the market with technology that belongs to us, using unlawful and deceptive means.

“We are taking this action reluctantly, but with the utmost confidence. It is designed to force Podium to desist from any ongoing legal breaches, safeguard Psytech’s intellectual property, and clarify matters for any clients that may have been wrongfully approached or mis-sold services by the defendants.”

The case is Psytech International Limited v Podium Systems Limited & ors: CIV 2020-404-0577, New Zealand High Court.

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