By David Crane
defrev (at) gmail (dot) com
July 23, 2009
DefenseReview received an email message from one of our professional contacts this past Sunday about Dick Swan’s company, Atlantic Research Marketing Systems Inc. (A.R.M.S. Inc.), winning a $1.8 million (1.8M) judgement earlier this month against Troy Industries, Inc. in a federal lawsuit. An A.R.M.S. Inc. press release, dated July 17, 2009, states that the lawsuit they won against Troy Industries was originally filed on August 23, 2007 and alleged that Stephen Troy (Stephen P. Troy, Jr.) a.k.a. Steve Troy stole trade secrets from, and breached his fiduciary responsibility to, ARMS Inc..
From what Defense Review has read, the trade secrets in question involve the design of ARMS Inc.’s Mil-Std-1913 “Picatinny” modular free-float rail system/forend rail tube/handguards for the AR-15/M16/M4/M4A1 series of weapons. DefenseReview has also found what appears to be a separate patent infringement lawsuit (PDF), dated May 5, 2009, that ARMS, Inc. has filed against Troy Industries, alleging that Troy Industries is in violation of an ARMS patent. This patent-infringement lawsuit (PDF) appears to focus on the A.R.M.S. Inc. rail’s–called a “Modular Sleeve Yoke” in the patent document–method of attachment to the AR-15/M16/M4/M4A1 weapons series, including how it attaches to the weapon’s barrel nut.
Now, here’s the full text of the July 17 ARMS, Inc. press release:
“Date: Friday, July 17, 2009
Title: A.R.M.S. Inc. wins Trade Secret and Breach of Fiduciary Duty Lawsuit against Stephen P. Troy, Jr. and Troy Industries, Inc..
Sub-title: Jury in United States District Court for the District of Massachusetts awards A.R.M.S., Inc. $1.8M in weapons accessory trial.
(West Bridgewater, MA) – A federal court jury awarded A.R.M.S. Inc., a designer of accessories and attachments for small arms weapons for 30 years, in excess of $1.8 million in damages in a lawsuit alleging theft of trade secrets and breach of fiduciary duty against Stephen P. Troy, Jr. and his company, Troy Industries, Inc., of Lee, MA. In the lawsuit, originally filed on August 23, 2007, A.R.M.S. alleged that its former employee of seven months, Stephen Troy, who had held a position of trust and confidence with the company, had stolen A.R.M.S.’s trade secrets for a proprietary handguard system for use on M-4/M-16/AR-15 rifles and incorporated those trade secrets in a competing modular, free-float railed handguard system that attached to the barrel nut and that was being offered and sold by Troy Industries, commencing after he was fired from A.R.M.S.. On June 26, 2009, after a two-week trial in the Massachusetts Federal District Court, a nine member federal jury returned a verdict against Stephen P. Troy and Troy Industries, finding them liable for misappropriation of trade secrets and breach of fiduciary duty. Richard Swan, the president of A.R.M.S.® Inc., said, “We are pleased that the jury upheld our trade secret rights and determined that our former employee and his company should not profit from the theft of our trade secrets.” Amongst others, witnesses for A.R.M.S. included two representatives of the U.S. military. Other issues in the case remain pending before the Court.
A.R.M.S.’s trial counsel was Craig M. Scott and Christine K. Bush of Scott & Bush Ltd., a Providence, RI-based firm that specializes in complex business and intellectual property litigation.
Atlantic Research Marketing Systems (A.R.M.S.®) Inc.
Atlantic Research Marketing Systems (A.R.M.S.®) Inc., with more than 40 National Stock Numbers [NSN's] in service to the U.S., and foreign militaries worldwide, specializes in advancing the capabilities of small arms, crew served, and anti-armor weapons in function, reliability and accuracy. A.R.M.S.® also designs and manufactures a variety of weapon handguards and advanced sight system mounts for day and night vision equipment including thermal and laser. Expertise in all types of small arms weaponry, munitions, and accessories provides A.R.M.S.’s clients a source of fast and reliable problem solving services in engineering, research and development, and product reliability. The company, based in West Bridgewater, MA, develops and markets a large number of patented products through its worldwide network of dealers and distributors, including scope and laser mounts, handguards, folding sights, adaptors and other accessories. For more information, please visit www.armsmounts.com.
The law firm of Scott & Bush Ltd. provides strategic counseling, litigation and trial services nationwide for clients with complex business and intellectual property needs. The firm’s founders serve as lead trial counsel in patent, trademark, copyright and trade secret cases involving various technologies and consumer products, as well as construction and other business disputes. For a full listing of the firm’s attorneys, including professional activities, publications and honors, and other information, please visit its website at www.scottbushlaw.com.
Atlantic Research Marketing Systems (A.R.M.S.®) Inc.
230 West Center Street
West Bridgewater, MA 02379-1620
Tel: (508) 584-7816
Scott & Bush Ltd.
30 Kennedy Plaza, 4th Floor
Providence, Rhode Island 02903
Tel: (401) 865-6035