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Appian has won a significant court case and will be awarded $2 billion

Appian Corp. (APPN), a cloud solutions provider, won the case. The court acknowledged the misappropriation of Appian technology and ordered a prospective rival to pay $2.036 billion in damages. Pegasystems, Inc. (PEGA), an IT company, has been accused by Appian of attempting to illegally exploit technology to automate the software development process. The trial was very important for Appian’s future because this technology is the most valuable thing the company has.

As a consequence, Appian’s lawsuit in the state of Virginia, United States, resulted in a total triumph. The jury found that Pegasystems not only infringed on Appian’s intellectual property rights but also that appropriating other people’s innovations was unlawful, malicious, and deliberate. Pegasystems will be obliged to take full responsibility for the usage of Appian innovations.

Pegasystems will pay compensation that is about equivalent to five years’ worth of Appian income. The news is unfortunate for Pegasystems stockholders not just because of the financial consequences, but also because the management’s actions would harm the company’s brand. During the trial, it was revealed that Pegasystems obtained trade secret material from a contractor that worked with Appian under a federal contract. Pegasystems’ ultimate objective was to build competitive services and marketing methods in order to increase Appian’s market share.

As a result, an unethical contractor employee shot hundreds of films of the Appian development environment, and Pegasystems management was aware of this activity and participated in the preparation of a commercial espionage operation dubbed “Project Crush.” Alan Trefler, the founder and CEO of Pegasystems, accepted these facts in court. The case ended well for Appian. The firm was able to show the value and originality of its innovations in addition to receiving pay. This could bring in new customers as well as big investors who might want to buy the Appian company.

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