Movie research firm claims former head misappropriated trade secrets

By Gregg Kilday

Caught off-guard when Kevin Goetz resigned as president of its motion picture group in late February, entertainment research firm OTX has taken its case to court.

On Tuesday, OTX filed suit in Los Angeles Superior Court against Goetz, who has launched a rival firm, Screen Engine, and other Screen Engine employees, charging them with misappropriation of trade secrets, breach of contract and unfair business practices.

At a hearing, Judge James Chalfant denied OTX's request for a temporary restraining order. The parties agreed that Screen Engine would not use any of OTX's proprietary information, such as historical research referred to within the industry as "norms." The exact terms of the stipulation are still under discussion.

Read the full complaint:

Click here (PDF)

Vincent Bruzzese, who has succeeded Goetz as president of OTX's motion picture group, claimed victory, saying, "The judge saw fit to give us emergency relief, an injunction that Screen Engine cannot use our propriety information and norms."

"The court ruling yesterday was in favor of Screen Engine, Kevin Goetz and Screen Engine's employees," attorney Robert Wynner responded. "As a result, Screen Engine is continuing its business without any interruption or change in operations. Kevin brings 23 years of market research and consulting experience to the movie industry. His talents differentiate Screen Engine from its competitors and will be the cornerstone of its future success."

Added Goetz, "I am grateful the court took the time to consider this matter carefully. As a result of the decision, I feel so vindicated. Screen Engine will continue focusing solely on responding to the needs of its clients."

Bruzzese countered: "We are going to vigorously pursue other aspects of the case. We'll show they misappropriated our proprietary information, intentionally took steps to disrupt and harm our business and are not competing fairly. We need to protect our propriety information, our clients and our employees."

Goetz, who began his career at Nielsen's NRG, joined OTX in 2003. While growing OTX's business, he became known as an especially adept focus group moderator.