Rust-Oleum Corporation vs. Nic Industries, Inc.

Case Background

On September 12, 2018, Plaintiff Rust-Oleum Corporation filed a Trade Secret lawsuit in the District Court of Oregon, Medford Division(Case number: 1:18cv1655). Judge Magistrate Mark D. Clarke presided over the case.

Cause

On September 24, 2015, NIC Industries entered into an Exclusive Sales Agreement with Wipe New, LLC. This agreement granted Wipe New the exclusive right to purchase NIC products for resale as part of its Wipe New product line, which focused on wipe-on applications for vehicle restoration, detailing, and general home use. On November 30, 2015, Wipe New assigned its rights, duties, and obligations under the Sales Agreement to Rust-Oleum Corporation. Under the terms of the agreement, Rust-Oleum was required to meet minimum annual purchase amounts, which increased each year over the contract term. In late 2017, Rust-Oleum and NIC mutually agreed to terminate the Sales Agreement. On November 27, 2017, they signed a Mutual Settlement Agreement and Release, formally ending their exclusive sales relationship. This agreement included a mutual release from obligations under the Sales Agreement. Rust-Oleum agreed to pay for three purchase orders, after which the Sales Agreement would terminate, allowing Rust-Oleum the option to purchase products from other suppliers and independently develop its Wipe New product line. Following the termination, Rust-Oleum continued its research and development activities, formulating new products within the Wipe New product line.