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OmniGen Research, LLC v. Wang

United States District Court, D. Oregon

November 16, 2017

OMNIGEN RESEARCH, LLC AND PRINCE AGRI PRODUCTS, INC., Plaintiffs,
v.
YONGQIANG WANG, YAN ZHENG AND BIOSHEN, Defendants.

          FINDINGS OF FACT AND CONCLUSIONS OF LAW

          Michael J. McShane United States District Judge

         After granting Plaintiffs' Motion for Terminating Spoliation Sanctions, finding and ordering that a default judgment shall be entered in favor of Plaintiffs and against Defendants, and affording the parties an opportunity to present live testimony, evidence, and argument at a hearing conducted on October 3, 2017, the Court enters the following findings of fact, conclusions of law, and decision regarding damages, injunctive relief, and attorneys' fees:

         I. FINDINGS OF FACT [1]

         A. Introduction

         1. “From 2005 to 2013, Plaintiff OmniGen Research, LLC (‘OmniGen Research') employed Defendant Yongqiang Wang as a scientist. Wang reported to Neil Forsberg, who is OmniGen Research's co-founder, and at the time was its Vice President and Chief Scientific Officer. In 2013, Wang worked as a consultant for Plaintiff Prince Agri Products, Inc. (‘Prince Agri'), which had become OmniGen Research's parent company as of December 20, 2012, with the acquisition of OmniGen Research by Prince Agri.” (Compl. ¶ 1, ECF No. 1.)

         2. “At the same time Wang worked for OmniGen Research and Prince Agri in Oregon, he breached his contracts with them by secretly creating an OmniGen Research-clone Chinese business based on stolen OmniGen Research and Prince Agri information and the infringement of their rights. That imitation business consists of at least two entities, Defendant Bioshen and the Chinese company Jiangsu Mirigen Biotechnology Development Co., Ltd. (‘Mirigen').” (Compl. ¶ 2.)

         3. “While working at OmniGen Research, Wang applied for a Chinese patent that covers a knockoff of an OmniGen product. He tried to hide the application from OmniGen Research and Prince Agri, even though it rightfully belongs to OmniGen Research, by having Defendant Yan Zheng-who is Wang's wife and . . . does not have a background in biological sciences-listed as an inventor in his place. He . . . tried to hide Bioshen by listing Zheng as its representative and ‘Registrant/Owner' with the Oregon Secretary of State; and he . . . tried to hide Mirigen by having another associate, Wei Zeng, listed as the registrant, administrative contact, and technical contact for the Mirigen website.” (Compl. ¶ 3.)

         4. “A little more than a year after quitting OmniGen Research and Prince Agri, Wang published and took credit for OmniGen Research's product, product story and research approach as his own in a[n] … article for a[n] … overseas scientific journal. He continue[d] to use OmniGen Research information in marketing materials promoting Mirigen and Bioshen. And, in November 2015, he presented an OmniGen Research slide presentation as if it was his own at a large scientific conference in China. Many of the slides in that presentation were nearly exact copies of the OmniGen Research slide presentation, altered only to add the Mirigen logo.” (Compl. ¶ 4.)

         5. “Mirigen and Bioshen market several lines of nutritional specialty products that are knockoffs of OmniGen Research's products.” (Compl. ¶ 5.)

         6. “Wang[] breach[ed] . . . two contracts with OmniGen Research and one contract with Prince Agri. Among other things, Wang has breached written agreements to return and not improperly use OmniGen Research's and Prince Agri's confidential information, to disclose and assign work-related inventions to OmniGen Research, to disclose work-related inventions to Prince Agri, and to not compete with Prince Agri.” (Compl. ¶ 7.)

         7. “Zheng and Bioshen intentionally interfered with OmniGen Research's and Prince Agri's economic relations with Wang because, among other things, they intentionally helped Wang breach his promises to assign his work-related patent applications and patents to OmniGen Research and to disclose them to both OmniGen Research and Prince Agri. Zheng and Bioshen intentionally interfered with Prince Agri's economic relations with Wang because, among other things, they intentionally helped Wang to breach his contract to not compete with Prince Agri.” (Compl. ¶ 8.)

         B. The Parties

         1. Omnigen Research And Prince Agri

         8. “OmniGen Research, LLC is an Oregon limited liability company . . . OmniGen Research is a subsidiary of Prince Agri Products, Inc.” (Compl. ¶ 13.)

         9. “Prince Agri Products, Inc. is a Delaware corporation . . . Prince Agri is a subsidiary of Phibro Animal Health Corporation (‘Phibro').” (Compl. ¶ 14.)

         10. “In 2002, Forsberg and Steve Puntenney co-founded OmniGen Research when Forsberg was a professor at Oregon State University (‘OSU'), and Puntenney was a graduate student in Forsberg's department. It is now a successful agricultural research and development company, operating within larger corporate entities following the sale of OmniGen Research by Forsberg and Puntenney to Prince Agri in December 2012. OmniGen Research has a research laboratory in Corvallis, Oregon and a research farm south of Corvallis.” (Compl. ¶ 23.)

         11. “OmniGen Research's business is based on technology originally developed by Puntenney. Puntenney had determined that the cause of a common disease, called Hemorrhagic Bowel Syndrome, in lactating cows was moldy feed. Puntenney developed feed additives that help counteract this cause, and that have a variety of other beneficial effects, including strengthening and helping to maintain dairy cows' immune system, which in turn helps to prevent diseases, reducing the need for antibiotics, and increasing milk production. Forsberg advanced the technology by among other things identifying mechanisms of action and immunological markers for better understanding it.” (Compl. ¶ 24.)

         12. “OmniGen Research holds numerous patents around the world, including in the U.S. and China. Prince Agri and Phibro have rights to use OmniGen Research's technology. Puntenney's and Forsberg's inventions led to breakthrough and highly successful products for dairy cattle, including OmniGen-AF, OmniGen-WYC and OmniGen-Green, which are developed, made and sold by Prince Agri, and also sold by Phibro. OmniGen Research has determined that its technology would benefit other species, including pigs and poultry.” (Compl. ¶ 25.)

         13. “The OmniGen products have had strong sales in the U.S. and elsewhere. Phibro has recently launched those products in China. Forsberg currently works as a consultant for Phibro, and is assisting with this product launch, including lecturing in China on scientific topics related to the OmniGen products.” (Compl. ¶ 26.)

         2. Wang And Zheng

         14. “Defendant Yongqiang Wang is a citizen of China, a legal permanent resident of the United States, and a resident of the State of Oregon, having his residence at 6255 SW Chestnut Drive, Corvallis, Oregon 97333.” (Compl. ¶ 15.)

         15. “Defendant Yan Zheng is a citizen of China, a legal permanent resident of the United States, and a resident of the State of Oregon, having her residence at 6255 SW Chestnut Drive, Corvallis, Oregon 97333. (Compl. ¶ 16.)

         16. “Wang first met Forsberg when Wang was a graduate student at OSU and Forsberg was a professor. Forsberg took Wang under his wing, hiring him to work in his academic research laboratory. When OmniGen Research grew, Forsberg hired Wang in 2005 to work at OmniGen Research. Wang worked at OmniGen Research as Forsberg's right hand man for the next eight years.” (Compl. ¶ 27.)

         17. “Originally from China, Wang and his wife, Zheng, built lives in Corvallis, Oregon. With OmniGen Research as their sponsors, they became legal permanent residents of the U.S. They purchased their house and a rental property in Corvallis.” (Compl. ¶ 28.)

         18. “Wang apparently decided he owed no loyalty to OmniGen Research. So, while continuing to work at OmniGen Research, [Wang] . . . secretly form[ed] two businesses, Bioshen and Mirigen, to compete with OmniGen Research with the help of his wife and associates.” (Compl. ¶ 29.)

         3. Bioshen And Mirigen

         19. “[Defendat] Bioshen is . . . registered as an assumed business name for Zheng with a principal place of business at 6255 SW Chestnut Drive, Corvallis, Oregon 97333.” (Compl. ¶ 17.)

         20. “Mirigen is a Chinese corporation. Mirigen's principal place of business is listed as Block 3, No. 28, Yanfeng Road, Yanqiao Supporting Area, Huisahn Economic Development Zone, Wuxi, China.” (Compl. ¶ 32.)

         21. “On or about February 6, 2012, while Wang still worked at OmniGen Research, Bioshen was registered as an assumed business name for a business with the Corporation Division of the Oregon Secretary of State using an electronic registration form bearing Zheng's electronic signature. The registration form listed Zheng as the business's ‘Registrant/Owner, ' and Wang's and Zheng's home address as its headquarters.” (Compl. ¶ 30.)

         22. “On or about April 28, 2012, the Bioshen website, www.bioshen.com, was registered, listing Zheng as the registrant but using Wang's email address and cell phone number for contact information.” (Compl. ¶ 31.)

         23. “On or about September 11, 2012, while Wang still worked at OmniGen Research, Mirigen was formed.” (Compl. ¶ 32.)

         24. “On or about October 21, 2012, the Mirigen website, www.mirigen.com, was registered, listing Zeng as the registrant, administrative contact, and technical contact.” (Compl. ¶ 33.)

         25. “Wang has been a co-owner of Mirigen from its inception, according to official Chinese documents.” (Compl. ¶ 34.) Defendants did not dispute this allegation in their responsive pleading. (SAA ¶ 34.) Wang has maintained an ownership interest and had involvement in Mirigen despite this Court's Preliminary Injunction prohibiting it, Exs. 6-7. (See ECF No. 104 at 7; Preliminary Injunction, ECF No. 50, ¶ 10 (“Wang and Zheng (including Bioshen) shall no longer have any involvement with or (direct or indirect) ownership interest in Mirigen.”).

         26. “Mirigen's website is mostly in Chinese; a computer translation described Mirigen as “a professional high-tech biological additives research and development, production, sales and service” business focusing on “feed additives.” The website listed four products, YQ004, YQ005, YQ006, and YQ007, for aquaculture, cows, pigs, and poultry, respectively . . . . ‘YQ' stands for Yongqiang, which is Wang's first name.” (Compl. ¶ 36.)

         27. “In November 2015, Bioshen and Mirigen co-sponsored a scientific conference in China, attended by more than 1, 000 people from academia, industry and government. Wang appeared on behalf of both companies, and Bioshen promoted itself as ‘BioShen USA Corporation.'” (Compl. ¶ 37.)

         28. “Marketing materials available at the November 2015 conference in China linked Mirigen and Bioshen to each other, and included information about Bioshen USA products called ‘Keligen' for pigs and poultry that employ ‘the most advanced modern green agricultural technology from the United States.'” (Compl. ¶ 38.) The Plaintiffs' Contracts, Confidential Information And Copyrights

         4. The Contracts

         29. “On or about September 23, 2009, Wang entered into the two contracts currently at issue with OmniGen Research and in 2013 he entered into a contract with Prince Agri.” (Compl. ¶ 39.) Defendants did not dispute this allegation in their responsive pleading. (SAA ¶ 39.)

         30. “In the ‘Confidentiality and Non-Disclosure Agreement' with OmniGen Research, Wang agreed . . . . to strict limitations on his use and disclosure of OmniGen Research trade secrets and proprietary information, and to return all material relating to OmniGen Research upon termination of his employment . . . .” (Compl. ¶¶ 40, 92.)

         31. “In the ‘Employee Invention Agreement' with OmniGen Research, Wang agreed, among other things, to disclose and assign to OmniGen Research all inventions that result from his work at OmniGen Research, that relate to OmniGen Research's business, or that result from using OmniGen Research resources.” (Compl. ¶ 41.)

         32. “Each of the two above contracts state ‘I EXPRESSLY CONSENT TO VENUE IN, AND THE PERSONAL JURISDICTION OF, THE STATE AND FEDERAL COURTS LOCATED IN OREGON FOR ANY LAWSUIT ARISING FROM OR RELATING TO THIS AGREEMENT.'” (Compl. ¶ 42.)

         33. “On or about February 1, 2013, following the sale of OmniGen Research to Prince Agri in December 2012, Wang abruptly quit OmniGen Research. A week later, Wang agreed to help OmniGen Research with the ensuing transition by becoming a consultant for Prince Agri. Wang executed a consulting agreement with Prince Agri on or about February 11, 2013 to memorialize his agreement with Prince Agri. Wang subsequently changed his mind about continuing as a consultant and severed his ties permanently with Prince Agri and OmniGen Research.” (Compl. ¶ 43.)

         34. “The ‘Consulting Agreement' between Wang and Prince Agri has, among things, sections in which Wang promises to maintain the confidentiality of Prince Agri's information, and not make unauthorized use of it, to return all Prince Agri confidential information upon termination of the engagement, to disclose inventions to Prince Agri, and to not compete with Prince Agri during the term of the agreement or for one year following termination or expiration . . .” (Compl. ¶¶ 44, 100.)

         5. The Confidential Information And Trade Secrets

         35. “While at OmniGen Research for nearly eight years, Wang had access to its trade secrets and other confidential information. Wang also had access to the trade secrets and other confidential information of Prince Agri.” (Compl. ¶ 45.)

         36. “As a research and development company, OmniGen Research has extensive trade secrets and other confidential information, including about OmniGen Research technology and OmniGen products.” (Compl. ¶ 46.)

         37. “As a product development company, Prince Agri has extensive trade secrets and other confidential information, including about OmniGen Research technology and OmniGen products.” (Compl. ¶ 47.)

         38. “The trade secrets and confidential information of OmniGen Research include OmniGen Research's research and experimentation methods, including its confidential comprehensive approach to testing the effectiveness of feed additives on animal populations. This approach combines, among other things, dosage amounts, intervals for measuring temporal responses, procedures for blood sampling, procedures for isolating blood cells, and assessment targets.” (Compl. ¶ 48.)

         39. “The trade secrets and confidential information of OmniGen Research and Prince Agri also include information about how to make OmniGen products. Since the original development of OmniGen products, OmniGen Research and Prince Agri have made numerous confidential improvements to OmniGen products, for example relating to processing aids, ingredient sourcing, ingredient mixing procedures, the scientific motivation behind the use of certain ingredients, and precise ratios of ingredients.” (Compl. ¶ 49.)

         40. “The above information has independent economic value, and has gained in value, because it is not generally known to the public or to other persons who can obtain economic value from its disclosure or use, thereby providing economic and competitive advantages to OmniGen Research and Prince Agri.” (Compl. ¶ 50.)

         41. “OmniGen Research and Prince Agri have made significant efforts to maintain the secrecy of the above information. For example, OmniGen Research and Prince Agri require employees with access to the above information to sign confidentiality agreements, such as the ones signed by Wang. OmniGen Research and Prince Agri keep the above information in secure electronic storage systems, and in locked, alarmed facilities not accessible by the public or people outside their organizations.” (Compl. ¶ 51.)

         42. “Efforts by OmniGen Research and Prince Agri to maintain the secrecy of the above information are and have been reasonable under the circumstances.” (Compl. ¶ 52.)

         6. Copyright

         43. “A former professor, Forsberg's role at OmniGen Research included lecturing to veterinarians, scientists, customers and potential customers about some of the research and science behind the OmniGen products.” (Compl. ¶ 53.)

         44. “Forsberg developed a core lecture, based on slides. Over the years, he gave variations of it more than 100 times to audiences across the country and internationally.” (Compl. ¶ 54.)

         45. “OmniGen Research owns the copyright for these slides, and has recently obtained Copyright Registration TXu001977244 for one version of them.” (Compl. ¶ 55.)

         46. Copyright Registration TXu 1-977-244 was effective on February 11, 2016 for OmniGen Research's slides “Nutritional regulation of immune function.” (Ex.[2] 14.)

         47. “In his current role, in January of [2016], Forsberg lectured in China as part of the launch of OmniGen products in China.” (Compl. ¶ 56.)

         48. A presentation dated March 16, 2016 on its face and found on Wang's computer contains copies or at least substantial copies of slides in OmniGen Research's copyrighted slides. (Compare Ex. 14 at 15, 28 and 31 with Ex. 15 at 3, 7 and 9.)

         C. Wang's, Zheng's And Bioshen's Illegal Acts

         1. During Omnigen Research's Employment Of Wang

         49. “Following an extended January 2012 trip to China, Wang took concrete, secret steps that went well beyond initial preparatory measures to form his OmniGen-clone Chinese business while he was employed by OmniGen Research.” (Compl. ¶ 57.)

         50. “On or about February 6, 2012, as set out above, Bioshen registered as a business with the State of Oregon . . . . Wang secretly participated in the registration of Bioshen.” (Compl. ¶ 58.)

         51. “That month, Wang also communicated extensively and secretly with Zeng, who is believed to have lived in New York State at the time. In one email Wang urged Zeng to look at OmniGen Research's and Prince Agri's websites to ‘find anyway to get your business to start' and to ‘please let me know your ideas.'” (Compl. ¶ 59

         52. “On or about March 3, 2012, Zeng sent Wang an email with his mailing address in Setauket, New York, along with the message ‘Look forward to your docs, and let's roll … rock later …'” (Compl. ¶ 60.)

         53. “Wang sent Zeng documents and a CD, including . . . confidential OmniGen Research information.” (Compl. ¶ 61.)

         54. “On or about March 6, 2012, Zeng sent Wang another email stating ‘Got your documents and the CD.'” (Compl. ¶ 62.)

         55. “Over the next few weeks, Zeng, Wang and a third person, Liancheng Chen spent hours communicating with each other on video calls and Internet chats.” (Compl. ¶ 63.)

         56. “On or about April 28, 2012, the domain name for the Bioshen website, www.bioshen.com, was registered.” (Compl. ¶ 64.)

         57. “[I]n the spring of 2012 or earlier, Wang began planning and later helped conduct an experiment on the effect of a product very similar or identical to the OmniGen products on poultry, without the knowledge or permission of OmniGen Research or Prince Agri.” (Compl. ¶ 65.)

         58. “On or about September 11, 2012, Mirigen was registered as a business with the Chinese government. Wang had an ownership stake in the Mirigen business, along with Zeng, Chen, among others.” (Compl. ¶ 66.)

         59. “On or about October 21, 2012, the domain name for the Mirigen website, www.mirigen.com, was registered.” (Compl. ¶ 67.)

         60. “On or about October 29, 2012, a Chinese patent application was filed for a ‘Natural Animal Feed Additive' with ingredients very similar to the OmniGen-WYC product. The application number was 201210420822 (‘the '822 Chinese patent application'). The application lists four inventors but Wang is not one of them. Instead, the listed inventors are Zheng (Wang's wife), Zeng, Chen, and Yu Li.” (Compl. ¶ 68.)

         61. “Wang orchestrated the preparation and filing of the '822 Chinese patent application.” (Compl. ¶ 69.)

         62. “[L]isting Wang's wife as an inventor on the '822 Chinese patent application was a sham. She had no substantive involvement in the application or the claimed subject matter, but Wang listed her because he wanted to ensure that ownership of the application remained in his family while decreasing the possibility that OmniGen Research would learn of his role with respect to the patent application . . . . [H]e also wanted to create a (flawed) argument that OmniGen Research did not have rights to the application under the Employee Invention Agreement [which is attached to the Complaint].” (Compl. ¶ 70.)

         63. “In November 2012, a few days after the filing of the '822 Chinese patent application, Wang took an extended and unannounced absence from work at OmniGen Research.” (Compl. ¶ 71.)

         64. “In early January, 2013, Wang again took an unannounced trip of about three or four days. Soon after his return, he told Forsberg that he needed to immediately travel to China. Forsberg did not authorize that trip and Wang did not leave at that time, but about ten days later Wang again took an unannounced trip for about three days.” (Compl. ¶ 72.)

         65. “On or about January 23, 2013, the '822 Chinese patent application was published (unbeknownst to OmniGen Research).” (Compl. ¶ 73.)

         66. “On or about February 1, 2013, Wang quit OmniGen Research.” (Compl. ¶ 74.)

         67. “On or about February 7, 2013, Wang agreed to continue on as a consultant for Prince Agri to assist OmniGen Research transition due to his departure.” (Compl. ¶ 75.)

         68. “Then, on or about February 27, 2013, Wang stopped consulting and, it was later discovered, also attempted to erase the contents of his OmniGen Research-owned computer before returning it.” (Compl. ¶ 76.)

         2. Activities After Wang Quit Working

         For OmniGen Research And Prince Agri

         69. “On or about July 23, 2013, the Chinese government issued to Mirigen a production license for a feed additive.” (Compl. ¶ 77.)

         70. “On or about August 29, 2013, . . . Wang presented ‘Effect of dietary supplementation on improvement of growth and immune function of broilers' at The 7thInternational Medicinal Mushroom Conference in Beijing, China.” (Compl.¶ 78.)

         71. “On or about September 17, 2013, an article ‘Effect of dietary supplementation on improvement of growth and immune function of broilers' was submitted in . . . Engineering Sciences. The article listed Chen, Zeng, Li and Wang as authors. The article described a research study of a dietary supplement product called Mirigen that has nearly identical ingredients to the product OmniGen-WYC. The article described a research approach that is a trade secret and confidential information of OmniGen Research, which includes among other things dosage amounts, intervals for measuring temporal responses, procedures for blood sampling, procedures for isolating blood cells, and assessment targets. [T]he Mirigen product described in the article was created using trade secrets and confidential information of OmniGen Research and Prince Agri, including processing aids, ingredient sourcing, ingredient mixing procedures, the scientific motivation behind the use of certain ingredients, and/or precise ratios of ingredients.” (Compl. ¶ 79.)

         72. “On or about October 30, 2013, a Chinese patent issued from the '822 Chinese patent application. That patent is Chinese patent no. ZL 2012 1 0420822.6 (‘the '822.6 Chinese patent').” (Compl. ¶ 80.)

         73. “On or about July 10, 2014, the above-described article ‘Effect of dietary supplementation on improvement of growth and immune function of broilers' was published in Engineering Sciences.” (Compl. ¶ 81.)

         74. “On or about July 14, 2015, outside counsel for OmniGen Research and Prince Agri sent Wang and Zheng a letter stating, among other things, that Wang had breached his contracts with OmniGen Research and Prince Agri, and that he had misappropriated their trade secrets. The letter also demanded, among things, that Wang and Zheng return all confidential documents of OmniGen Research and Prince Agri, that they assign the Chinese patent to OmniGen Research, and that Wang cease from all Mirigen-related activities.” (Compl. ¶ 82.)

         75. “OmniGen Research and Prince Agri did not receive a response to this letter. However, a few days after the letter was sent, the Mirigen website was no longer accessible.” (Compl. ¶ 83.)

         76. “But by November 2015, the Mirigen website was again accessible, although since then most of its content has again been removed.” (Compl. ¶ 84.)

         77. “On or about November 13-15, 2015, Mirigen and Bioshen, along with others, sponsored a conference in China called ‘The First ‘International Animal and Intestinal Ecology and Health in China Summit Forum' (IAIEH).' The conference was held at Hunan Normal University, and attended by more than 1, 000 people, including academics, government officials, and business leaders.” (Compl. ¶ 85.)

         78. “At this conference, Wang gave a lecture titled ‘Effects of immunomodulatory feed additive on the intestinal gene expression and anti-bacteria.' The lecture included the presentation of slides, the majority of which were copied from OmniGen Research's copyrighted slide presentations, created by Forsberg, which Wang had access to while at OmniGen Research and which he illegally copied and retained following termination of his engagement with OmniGen Research and Prince Agri. These slides included data from OmniGen Research studies re-styled as data from studies conducted for Mirigen.” (Compl. ¶ 86.)

         79. “The slides Wang copied and retained included OmniGen Research confidential notes that are visible when the slide presentation is edited and are a part of the electronic slide document, but that are not visible when the slides are presented.” (Compl. ¶ 87.)

         80. “Wang appeared at this conference as the president of Bioshen, and made numerous false statements in promoting Bioshen and Mirigen. For example, Wang represented the material copied from OmniGen Research's copyrighted slides as Mirigen's and Bioshen's, as well the innovations described therein. Bioshen and Mirigen also promoted their affiliation with ‘Dr. Kevin Marley, ' whom they touted as a ‘Professor of Veterinary College' at Oregon State University. This also was false, as Marley [wa]s a research assistant and a laboratory manager at Oregon State University, but not a professor.” (Compl. ¶ 88.)

         81. “Wang also provided an electronic version of the slides, which included OmniGen Research confidential notes, to the conference organizers, who then made electronic versions of the slides available to conference participants.” (Compl. ¶ 89.)

         82. “Bioshen and Mirigen also submitted a paper, which falsely describes research, as part of their participation in the conference. The paper describes a study conducted with pigs by Bioshen and Mirigen, when in fact the studies were conducted by OmniGen Research with regard to OmniGen products. The misrepresented studies were on sheep and dairy cattle. In other words, the paper falsely states the feed additive tested and the species involved, not to mention who actually conducted the studies.” (Compl. ¶ 90.)

         3. Breach Of Contract - Wang

         83. “In consideration of including but not limited to his continued employment by OmniGen Research, Wang promised among other things [in the Confidentiality and NonDisclosure Agreement] that he would not use OmniGen Research's ‘Protected Matters, ' as that term is defined in the agreement, without authorization or approval, and that he would return and not retain all documents relating to OmniGen Research and/or Protected Matters that he obtained during the course of his employment.” (Compl. ¶ 92.)

         84. “In consideration of including but not limited to $500, Wang promised [in the Employee Invention Agreement (attached as Exhibit B to the Complaint)] among other things to disclose to OmniGen Research every ‘Invention, ' as that term is defined in the agreement, resulting from work performed on behalf of OmniGen Research, to assign all right, title and interest to such Inventions, and to assist OmniGen Research in securing such rights. In the agreement, he also promised to notify OmniGen Research of the details of his employment with any future or prospective employers.” (Compl. ¶ 95.)

         85. “In consideration of including but not limited to his engagement as a consultant for Prince Agri, Wang promised among other things that he would not use or disclose Prince Agri's ‘Confidential Information, ' as that term is defined in the agreement, without authorization or approval, and that he would return all material containing, embodying or reflecting any Confidential Information. Wang also promised that during the Agreement's term, and for one year after, that he would not compete with Prince Agri's business.” (Compl. ¶¶ 44, 100.)

         4. Intentional Interference With Economic Relations - Yan Zheng And Bioshen

         86. “Both OmniGen Research and Prince Agri had a business and professional relationship with Wang, as a result of among other things the aforementioned contracts.” (Compl. ¶ 106.)

         87. As set forth in the conclusions of law, Defendants Zheng and Bioshen interfered with Wang's performance of the contracts described above.

         5. Trade Secret Misappropriation - Yongqiang Wang

         88. “OmniGen Research's trade secrets include its comprehensive approach to testing the effectiveness of feed additives on animal populations, including among other things dosage amounts, intervals for measuring temporal responses, procedures for blood sampling, procedures for isolating blood cells, and assessment targets.” (Compl. ¶ 117.)

         89. “OmniGen Research's and Prince Agri's trade secrets also include improvements about how to make OmniGen products, including processing aids, ingredient sourcing, ingredient mixing procedures, the scientific motivation behind the use of certain ingredients, and precise ratios of ingredients.” (Compl. ¶ 118.)

         90. As set forth in the conclusions of law, Defendant Wang misappropriated Plaintiffs' trade secrets.

         6. False Advertising - Yongqiang Wang, Yan Zheng, And Bioshen

         91. “Wang, Zheng (through Bioshen) and Bioshen have made false and misleading statements in the promotion of Bioshen and Mirigen, and their products. Those statements include for example Wang and Bioshen's representation at a scientific conference that slides based on OmniGen Research's copyrighted slides are the work of Wang, Bioshen and Mirigen, and reflect their own research and analysis; a paper about research for a scientific conference that falsely states the feed additive tested, the target animal species, and who conducted the research; and that Mirigen and Bioshen are affiliated with a ‘professor' at Oregon State University.” (Compl. ¶ 129.)

         92. Mirigen and Bioshen were created based on OmniGen Research's business and trade secrets.

         93. “These statements are material at least because they lend credibility to Wang, Bioshen, and Mirigen, giving them the appearance of relying on original scientific research and thinking. This additional credibility is material to the purchasing decision of a substantial segment of consumers.” (Compl. ¶ 130.)

         94. “These false and misleading statements were intentionally and/or willfully designed to unfairly compete and make sales that otherwise would not have been made.” (Compl. ¶ 131.)

         95. The false and misleading statements are greatly comprised of research data and trade secrets misappropriated from OmniGen Research, and falsely attributed to Mirigen, Bioshen or Mirigen products.

         96. Defendants used OmniGen Research's trade secrets, copyrighted slides, and confidential information to try to give Mirigen and Bioshen an appearance of credibility like OmniGen Research had already established for itself.

         97. “These statements were made in commercial advertising or promotion because for among other reasons they constitute commercial speech, were made by Wang, Zheng (through Bioshen) and Bioshen in an attempt to unfairly compete with OmniGen Research and Prince Agri, and were made for the purpose of influencing customers and potential customers to purchase Bioshen's Keligen products and Mirigen's YQ products.” (Compl. ¶ 132.)

         98. “Plaintiffs compete with Bioshen and Mirigen. OmniGen Research's related companies Prince Agri and Phibro have rights to use OmniGen Research's technology and use it for OmniGen products, which are sold around the world, including an ongoing product launch in China.” (Compl. ¶ 133.)

         99. “Bioshen claims to have Keligen products offered as ‘An honored product of the Bioshen USA Corporation.' Promotion of these products rely on the same scientific concepts and boast the same benefits as OmniGen products. Bioshen claims to work closely with Mirigen, which offers YQ products that advertise nearly identical ingredients as in OmniGen-WYC, and promotion of these products rely on the same scientific concepts and boast the same benefits as OmniGen products.” (Compl. ¶ 134.)

         100. “Mirigen and Bioshen market several lines of nutritional specialty products that are knockoffs of OmniGen ...


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