What You Should Know:
– On April 25, 2025, the U.S. District Court for the Northern District of California granted Canopy, a healthcare safety technology platform a preliminary injunction against Commure, Inc., finding that Commure will likely be found in violation of contractual restrictions by building, selling, and distributing its “Strongline Pro” product.
– The court ruling (Case No. 5:24-cv-02592-NW) brings to light a contentious history involving intellectual property and contractual agreements in the rapidly evolving healthcare technology sector.
Background: Innovation, Agreements, and Alleged Breach
The dispute originates from Canopy’s (formerly SMP Labs) development of cutting-edge wearable safety technology and the enabling Real-Time Location System (RTLS). Canopy licensed this proprietary technology for distribution, a license eventually acquired by Commure.
However, the court’s recent ruling indicates that Commure likely breached the terms of its reseller agreement with Canopy. A key element of this agreement was a clause explicitly prohibiting the creation of a derivative product through reverse engineering. Evidence presented suggests that Commure utilized Canopy’s confidential information, accessed through the reseller relationship, to improperly develop and market its own Strongline Pro platform, effectively creating a copycat product.
Court’s Preliminary Injunction Curbs Commure’s Competing Product
The preliminary injunction issued by the court immediately imposes several restrictions on Commure’s activities related to its Strongline Pro product. Commure is now prohibited from:
- Selling, distributing, advertising, or marketing Strongline Pro to any new customers.
- Installing Strongline Pro at any new site, whether for new or existing customers.
- Upgrading Strongline Pro at any existing customer site.
- Using or disclosing Canopy’s confidential information and trade secrets by means of Strongline Pro.
- Making any untrue, misleading, or disparaging statements about Canopy or its products.
“Fundamentally, this ruling is about trust – the trust our customers place in us to protect their people,” said Shan Sinha, CEO and Co-Founder of Canopy. “Our commitment to staff safety requires authentic, dependable technology, which we invested years creating. This injunction protects that original innovation. This gives our customers the assurance that they are equipped with the authentic, reliable Canopy technology vital for safeguarding their workforce.”
The company stated that the court’s findings affirm that Commure’s alleged misuse of Canopy’s proprietary technology not only undermines the innovation ecosystem but also risks compromising the trust healthcare providers place in essential safety solutions.
