Bin secrets go to court in wrangle between high-tech rivals

By PETER GRIFFIN IT writer

A document found in an office rubbish bin is at the centre of a legal wrangle between 3D graphics developer Virtual Spectator and new company iVistra.

Intellectual property underpin-ning both companies' businesses is at stake.

A confidential document written by iVistra is in the hands of management at Virtual Spectator.

Now iVistra wants to prevent Virtual Spectator acting on any of the information in the document and to have it and any copies returned.

But Virtual Spectator claims some of the information in the document is its own intellectual property.

It plans to make a counter-claim for breach of contract and interference with contractual obligations.

iVistra is headed by Virtual Spectator co-founder Craig Meek, and became a potential Virtual Spectator competitor when Meek left to develop it in March.

The document outlines iVistra's "visionary strategies" and "ideas of technology development" and is understood to form the basis of a business proposal that was presented to the America's Cup Committee, which has the task of organising the next cup regatta, to be held in Europe in 2007.

Negotiations have already started for the hotly contested contracts to provide TV and internet graphics for the event.

It now appears iVistra may be seeking a slice of the action alongside Virtual Spectator, which has put a proposal to the America's Cup Committee.

Ivistra prepared the written parts of the document. It was then given to design company Frontend for graphics to be added.

But Frontend shares an office floor with Virtual Spectator in the Auckland suburb of Newmarket.

A copy of the completed document was discarded in a rubbish bin in Virtual Spectator's reception area, apparently put there by a seemingly careless Frontend employee.

It was fished out of the bin and ended up in the hands of Virtual Spectator's acting chief executive and co-owner, Neville Jordan.

In the High Court at Auckland, Virtual Spectator's lawyer, Simon Stokes, said the document revealed that iVistra was presenting intellectual property that belonged to Virtual Spectator.

"Shock horror, we find many of our ideas and intellectual property have found their way into the document."

Jordan said he had decided not to renew Meek's contract in March and would vigorously fight the action his ex-employee was now taking.

"It's highly likely we'll be taking our own proceedings against iVistra and certain people associated with the company," he said.

Meek would not comment on the case.

Frontend's director Simon Dickey said that although his company shared an office floor with Virtual Spectator, they were in separate rooms.

"It's really a question of someone's word against the other party's word," he said. The case will be argued in full next week.