Facebook founders accused of fraud and theft of the project
As promised, I post here with a delay of several days some interesting materials from my blog about venture investments, venture capital investors and startups IdeaBlog.ru
Most startups care about someone stealing their idea. And although the idea itself, as a rule, is worth nothing, the thoughtful business model of a startup based on this idea, the strategy of monetization of the project, its start and promotion are the know-how of startups, and any company, whether it’s big or small, just starting out, has this information he is trying to protect his business or existing for a long time from the eyes of others. I already wrote about whether investors can steal your idea, and how you should choose an investor to prevent this situation . The fact that competitors operating in the market in the same niche as you should protect their secrets from the market, I think everyone understands. However, there are other ways to leak your confidential information, which can lead to the fact that someone starts to implement your project without you and starts before you, and you, as a result, will not be in the works. I’m talking about the staff you hire and consider this problem using the example of a lawsuit filed against the founders of Facebook, in which they are accused of cheating and stealing the ideas of other startups who had Mark Zuckerberg, one of the founders of Facebook, a programmer.
On March 28, 2007, the Massachusetts District Court received a lawsuit from ConnectU, Inc against Facebook, Inc. and its founders Mark Zuckerberg (Mark Zuckerberg), Eduardo Saverin, Dustin Moskovitz, Andrew McCollum ) and Christopher Hughes. The lawsuit is considered judge Douglas Woodlock (Douglas P. Woodlock). The plaintiff accuses the defendants of copyright infringement, disclosure of trade secrets, breach of contract, breach of trust, undeserved enrichment, dishonest business, fraud and a number of criminal acts. Plaintiffs - ConnectU, Inc. and its founders, fellow students of Harvard University, Cameron Winklevoss, Tyler Winklevoss and Divya Narendra, who graduated from Harvard in 2004 - state that in December 2002 they began to develop a business plan for creating a new type of website, which was originally called Harvard Connection ( harvardconnection.com ), and was later renamed ConnectU ( connectu.com ). This site, according to its founders, was supposed to allow students and former pupils of colleges and universities to create a social network with people who studied at the same educational institution and provide them with a place to meet, exchange information, discuss employment prospects and acquaintances. Initially, Harvard students and graduates were the target audience for harvardconnection.com, but after the start of the Harvard social network, the founders of the startup planned to cover other educational institutions. The ConnectU business model was built on advertising revenue, and had, according to the founders, great chances of being financially successful, since the site users - well-educated students and graduates - are the target audience of many advertisers.
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In November 2003, ConnectU founders hired Mark Zuckerberg to complete the development of the site’s software. Thus, Mark Zuckerberg got access to the sources in the form in which they existed at the end of 2003. The purpose of the plaintiffs was to complete the development of the site as soon as possible so that they could run it before June 2004 - that is, until the moment they graduate. Zuckerberg, according to the plaintiffs, repeatedly assured them that he would put all his knowledge and efforts to complete the development of the software in the best possible way and as soon as possible. In addition to developing software, Zuckerberg was also involved in start-up business planning, interface development, clarifying the ConnectU business model, and planning the future functionality of the site.
The combination of the project idea, its business model, software, interfaces and site functionality, which were kept secret and were not disclosed to the third parties before the project launch, thus constituted the commercial secret of the plaintiffs. Zuckerberg, according to the plaintiffs, was aware that all this data is their property and constitute a commercial secret, therefore he pledged to maintain the confidentiality of the information to which he had access. He also realized the importance of launching the project before the end of the school year and before any of the competitors launched a similar service for the success of the project development, since the one who first launched such a site received a significant advantage over the competitors. Zuckerberg, as a reward for his work, had to, according to agreements with the plaintiffs, receive a share of the project’s profits and the opportunity to advertise his participation in the development and launch of the project to the public and potential employers.
On January 8, 2004, Zuckerberg sent an email to Cameron Winklevoss, confirming that in the very near future he would provide complete software and a functioning service website ( all e-mail messages, as well as other documents written or electronic, mentioned here were provided by the claimants to the court ). 3 days later, on January 11, 2004, without fulfilling what he promised, Zuckerberg registered the domain TheFacebook.com. At a meeting with the founders of harvardconnection.com, which was held on January 14, 2004, Zuckerberg did not tell them anything about the website he planned for thefacebook.com.
On February 4, 2004, Mark Zuckerberg, together with other defendants in this lawsuit, launched the website thefacebook.com, which was later renamed Facebook.com. Site concept, interfaces, functionality, etc. exactly what the claimants developed for their project. Zuckerberg told the press that he created and launched this site, spending a week on it. At the same time, until the launch of the thefacebook.com site, Zuckerberg did not tell the founders of ConnectU that he was leaving the project.
The founders of ConnectU, of course, were very surprised by the appearance of the thefacebook.com site by a developer who did not stop working in their team. They hired other programmers who completed the development of the site’s software and were launched on May 21, 2004, almost 4 months after launch of TheFacebook.com, but the time was lost.
On February 12, 2004, 8 days after the launch of TheFacebook.com, Mark Zuckerberg wrote in his email sent to Cameron Winklevoss: “At the very beginning, the project ( harvardconnection.com - IdeaBlog.ru ) interested me when you asked me to finish software for it. I did this ... ... I worked with the hope that I would be included in the work on the development and control of the business of the project, but I found that you demanded that I devote my time to it, without actually considering me as a co-founder of the project ... "
Pretty sad story, isn't it?
This article on the blog IdeaBlog.ru is here .
Most startups care about someone stealing their idea. And although the idea itself, as a rule, is worth nothing, the thoughtful business model of a startup based on this idea, the strategy of monetization of the project, its start and promotion are the know-how of startups, and any company, whether it’s big or small, just starting out, has this information he is trying to protect his business or existing for a long time from the eyes of others. I already wrote about whether investors can steal your idea, and how you should choose an investor to prevent this situation . The fact that competitors operating in the market in the same niche as you should protect their secrets from the market, I think everyone understands. However, there are other ways to leak your confidential information, which can lead to the fact that someone starts to implement your project without you and starts before you, and you, as a result, will not be in the works. I’m talking about the staff you hire and consider this problem using the example of a lawsuit filed against the founders of Facebook, in which they are accused of cheating and stealing the ideas of other startups who had Mark Zuckerberg, one of the founders of Facebook, a programmer.
On March 28, 2007, the Massachusetts District Court received a lawsuit from ConnectU, Inc against Facebook, Inc. and its founders Mark Zuckerberg (Mark Zuckerberg), Eduardo Saverin, Dustin Moskovitz, Andrew McCollum ) and Christopher Hughes. The lawsuit is considered judge Douglas Woodlock (Douglas P. Woodlock). The plaintiff accuses the defendants of copyright infringement, disclosure of trade secrets, breach of contract, breach of trust, undeserved enrichment, dishonest business, fraud and a number of criminal acts. Plaintiffs - ConnectU, Inc. and its founders, fellow students of Harvard University, Cameron Winklevoss, Tyler Winklevoss and Divya Narendra, who graduated from Harvard in 2004 - state that in December 2002 they began to develop a business plan for creating a new type of website, which was originally called Harvard Connection ( harvardconnection.com ), and was later renamed ConnectU ( connectu.com ). This site, according to its founders, was supposed to allow students and former pupils of colleges and universities to create a social network with people who studied at the same educational institution and provide them with a place to meet, exchange information, discuss employment prospects and acquaintances. Initially, Harvard students and graduates were the target audience for harvardconnection.com, but after the start of the Harvard social network, the founders of the startup planned to cover other educational institutions. The ConnectU business model was built on advertising revenue, and had, according to the founders, great chances of being financially successful, since the site users - well-educated students and graduates - are the target audience of many advertisers.
')
In November 2003, ConnectU founders hired Mark Zuckerberg to complete the development of the site’s software. Thus, Mark Zuckerberg got access to the sources in the form in which they existed at the end of 2003. The purpose of the plaintiffs was to complete the development of the site as soon as possible so that they could run it before June 2004 - that is, until the moment they graduate. Zuckerberg, according to the plaintiffs, repeatedly assured them that he would put all his knowledge and efforts to complete the development of the software in the best possible way and as soon as possible. In addition to developing software, Zuckerberg was also involved in start-up business planning, interface development, clarifying the ConnectU business model, and planning the future functionality of the site.
The combination of the project idea, its business model, software, interfaces and site functionality, which were kept secret and were not disclosed to the third parties before the project launch, thus constituted the commercial secret of the plaintiffs. Zuckerberg, according to the plaintiffs, was aware that all this data is their property and constitute a commercial secret, therefore he pledged to maintain the confidentiality of the information to which he had access. He also realized the importance of launching the project before the end of the school year and before any of the competitors launched a similar service for the success of the project development, since the one who first launched such a site received a significant advantage over the competitors. Zuckerberg, as a reward for his work, had to, according to agreements with the plaintiffs, receive a share of the project’s profits and the opportunity to advertise his participation in the development and launch of the project to the public and potential employers.
On January 8, 2004, Zuckerberg sent an email to Cameron Winklevoss, confirming that in the very near future he would provide complete software and a functioning service website ( all e-mail messages, as well as other documents written or electronic, mentioned here were provided by the claimants to the court ). 3 days later, on January 11, 2004, without fulfilling what he promised, Zuckerberg registered the domain TheFacebook.com. At a meeting with the founders of harvardconnection.com, which was held on January 14, 2004, Zuckerberg did not tell them anything about the website he planned for thefacebook.com.
On February 4, 2004, Mark Zuckerberg, together with other defendants in this lawsuit, launched the website thefacebook.com, which was later renamed Facebook.com. Site concept, interfaces, functionality, etc. exactly what the claimants developed for their project. Zuckerberg told the press that he created and launched this site, spending a week on it. At the same time, until the launch of the thefacebook.com site, Zuckerberg did not tell the founders of ConnectU that he was leaving the project.
The founders of ConnectU, of course, were very surprised by the appearance of the thefacebook.com site by a developer who did not stop working in their team. They hired other programmers who completed the development of the site’s software and were launched on May 21, 2004, almost 4 months after launch of TheFacebook.com, but the time was lost.
On February 12, 2004, 8 days after the launch of TheFacebook.com, Mark Zuckerberg wrote in his email sent to Cameron Winklevoss: “At the very beginning, the project ( harvardconnection.com - IdeaBlog.ru ) interested me when you asked me to finish software for it. I did this ... ... I worked with the hope that I would be included in the work on the development and control of the business of the project, but I found that you demanded that I devote my time to it, without actually considering me as a co-founder of the project ... "
Pretty sad story, isn't it?
This article on the blog IdeaBlog.ru is here .
Source: https://habr.com/ru/post/16832/
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