COURT ORDERS & WARRANTS

DATALINK GW1000 and the LAW

Equustek Systems Inc. is the designer and manufacturer of a series of network interface devices that are known as the DL2000, DL3500, DL4000, DL7000 and others.  These devices allow for communication with Allen-Bradley DH+, Ethernet, Ethernet IP, DH485, AB Remote I/O, Modbus, Siemens, and Toshiba products among others.  Equustek has been in business since 1993.  Equustek products may be viewed at www.equustek.comDatalink was a distributor of Equustek product and secretly developed a copy known as the GW1000 with the assistance of a prior employee of Equustek.  BC Supreme Court orders have been issued which should prevent Datalink from operating its business and a warrant for the arrest of Morgan Jack, the only known employee, director, and shareholder has been issued.  As is evident, Datalink has lied to its primary supplier, the courts, governments, customers and others.  Datalink and Morgan Jack are in violation of multiple court orders, including an order freezing their world-wide assets and an order that they cease carrying on business in any way. Equustek sued Datalink and its principal, Morgan Jack, in the courts of British Columbia, Canada, in April 2011. Equustek claims that  Datalink and Morgan Jack, while acting as the distributor of Equustek’s products, conspired with one of the plaintiffs’ former engineering employees to design and manufacture a competing product – the GW1000 –  using trade secrets which they took from Equustek.Before launching the GW1000, Datalink and Morgan Jack covered over the Equustek logo and sold Equutek’s products (the DL3500, DL4500, and others) as if these products were Datalink’s.Datalink and Morgan Jack incorporated multiple “Datalink” companies over many years in order to make their illegal profits as difficult to trace as possible.

Datalink and Morgan Jack filed defences with the court denying Equustek’s claims. However, since then Datalink and Morgan Jack have violated multiple court orders and their defences have been struck out.  Judge Dickson’s decision and her order, of June 2012, may be viewed on the COURT ORDERS page.  As a result of having their defences struck out, Morgan Jack and Datalink are deemed to have admitted all of Equustek’s allegations.

In July 2012 Mr. Justice Punnett ordered that the world wide assets of Morgan Jack and Datalink be frozen.  The order prohibits Datalink from carrying on business because it prohibits the sale of any inventory. 

Then on August 3, 2012, Madam Justice Fenlon ordered that Morgan Jack and Datalink be prohibited from making any use of any board schematics, parts lists, source code, design notes, and any drafts of any of these. Madam Justice Fenlon said:

The interim injunction sought by the plaintiffs [Equustek] is very broad, effectively prohibiting the use of whole categories of documents and information that lie as the heart of any business of a kind engaged in by both parties. I am mindful that the effect of this order is the suspension of the defendants’ business activities and their ability to earn income.….

The defendants have effectively disappeared. They have refused to provide any information about where they operate of where they manufacture the GW1000. The operating company has changed frequently. Morgan Jack at all times contracted in the name of Datalink Technologies Group Inc., a company that has not existed since 2007. Two other Datalink companies also no longer exist. The plaintiffs became aware of Datalink Technology Gateways Inc. only in December 2007.

Further, the company appears to be a virtual one…….

The defendants have repeatedly failed to comply with court orders made in these proceedings and are now deemed to have admitted the use of the plaintiff’s trade secrets’…..

… I have concluded that the balance of convenience favors the granting of the interim injunction, despite its breadth and potential consequences for the defendants.

So, Datalink is effectively prohibited from manufacturing or selling any more of its products, and therefore from carrying on business, by this order as well. You can view Madam Justice Fenlon’s decision in full on the COURT ORDERS page.

However, Datalink and Morgan Jack continue to sell their products in violation of these and other court orders.

The court registry is in Vancouver and the court file number is S112421.