EchoSpan Achieves a Landmark Win Against Medallia
The recent ruling from the United States Court of Appeals for the Ninth Circuit has stirred excitement within the tech industry. The court has mandated the reinstatement of a jury verdict which found that Medallia, Inc. had willfully and maliciously misappropriated EchoSpan's trade secret. This verdict comes with a substantial award of $25.7 million in both compensatory and punitive damages, marking an important victory for EchoSpan.
The Heart of the Dispute
This legal battle dates back to 2021 when a Medallia director gained access to EchoSpan's 360-feedback platform under dubious circumstances. Following this unauthorized access, a team of employees at Medallia utilized the information gained to develop a competing product. Described as a "lift-and-shift" approach, this scheme enabled Medallia to replicate EchoSpan's core technology and subsequently market the product to one of EchoSpan's prominent customers.
Jury's Unanimous Decision
In a decisive move in 2023, a federal jury unanimously ruled that Medallia was liable for the willful and malicious theft of trade secrets. As a result, they awarded EchoSpan $11.7 million in compensatory damages along with an additional $14 million in punitive damages, underscoring the severity of the infringement.
The Ninth Circuit's Overturning Ruling
However, following the jury's verdict, Medallia sought judicial review, leading to a trial court's decision that granted their motion for judgment as a matter of law. The court reasoned that the jury’s verdict lacked substantial basis for the awarded damages. Nevertheless, on October 31, 2025, the Ninth Circuit overruled this decision, asserting that the jury had indeed established a rightful basis for the damage amounts awarded to EchoSpan. As a result, the Ninth Circuit directed the lower court to reinstate the original jury verdict.
Statements from EchoSpan's Leadership
Joe Vance, the CEO of EchoSpan, expressed his thoughts regarding this pivotal case. He stated, "This case was always about truth and integrity. A jury heard the evidence and unanimously concluded that Medallia stole EchoSpan's technology. Rather than accept that outcome and take responsibility, Medallia spent almost two years trying to avoid the consequences of its actions. We are grateful that the Ninth Circuit agreed with our view of the evidence. We think the truth is plain for everyone to see."
Looking Ahead
In light of this recent legal success, EchoSpan plans to pursue the enforcement of the reinstated judgment fully. The intention is to hold Medallia accountable for its actions, ensuring that such misappropriation does not set a precedent in the industry.
About EchoSpan
EchoSpan stands as a frontrunner in providing 360-feedback and performance management solutions. For over two decades, the company has dedicated itself to aiding organizations across the globe in enhancing leadership skills and overall performance through innovative and secure HR technology.
Frequently Asked Questions
What was the outcome of EchoSpan's case against Medallia?
EchoSpan won a significant legal victory, with the Ninth Circuit reinstating a jury's verdict that found Medallia liable for trade secret theft, awarding EchoSpan $25.7 million.
When did the trade secret case begin?
The trade secret dispute between EchoSpan and Medallia started in 2021 when unauthorized access to EchoSpan's platform was obtained.
How much in damages did EchoSpan initially receive?
Initially, a jury awarded EchoSpan $11.7 million in compensatory damages and $14 million in punitive damages related to the case.
What did Joe Vance, CEO of EchoSpan, say about the case?
Joe Vance emphasized the importance of truth and integrity, highlighting the jury's unanimous decision that affirmed Medallia’s wrongful actions.
What are EchoSpan's core services?
EchoSpan specializes in delivering 360-feedback and performance management solutions, helping organizations thrive through innovative HR technology.
