Contract analysis

1. Identification of Sender and Client This firm represents Lumos Analytics Inc. ("Lumos" or the "Company"), a Delaware corporation headquartered at 4700 Orchard Parkway, Suite 300, San Jose, California 95134. We write on Lumos's behalf and at its express direction concerning matters of the utmost seriousness. Lumos is an AI-driven financial analytics software-as-a-service ("SaaS") company founded in approximately 20

2. Background — The Departing Employees and Their Obligations 2.1 Rajiv Anand Rajiv Anand served as Principal Engineer — ML Infrastructure at Lumos from March 2019 through September 30, 2022, a period of approximately three and one-half years. In that role, Mr. Anand was a key architect of the LumosEdge signal-generation engine, which is at the heart of Lumos's flagship product. By virtue of his position, Mr. Anand h

3. Lumos's Proprietary Information and Trade Secrets Lumos has invested years of effort and substantial financial resources in developing its proprietary technology, methodologies, and data assets. These materials constitute trade secrets within the meaning of the California Uniform Trade Secrets Act, California Civil Code sections 3426 through 3426.11, as they derive independent economic value from not being general

1. LumosEdge Ensemble ML Model Architecture. This includes Lumos's proprietary neural-network topology, ensemble model design, and hyperparameter configurations that govern the behavior, performance, and predictive accuracy of the LumosEdge signal-generation engine. This architecture is the product of years of iterative research and development, represents the core intellectual property of LumosEdge, and is not publi

2. Proprietary Feature-Engineering Libraries. Lumos has developed a suite of feature-engineering libraries containing 2,847 individual engineered features specifically designed and optimized for financial signal generation. These features were developed through extensive experimentation and domain expertise, and they constitute a significant competitive advantage that is not replicable without access to Lumos's inter

3. DataStream ETL Pipeline Codebase and Data-Schema Definitions. The "DataStream" system comprises the proprietary codebase and data-schema definitions that enable LumosEdge to ingest, normalize, transform, and load alternative financial data from 43 separate alternative-data vendors. The DataStream system reflects substantial investment in vendor-specific integration logic, data-quality assurance processes, and scal

4. Curated and Labeled Training Dataset. Lumos has compiled, curated, cleaned, and labeled a training dataset of approximately 14.6 terabytes of historical financial and alternative data. This dataset is the product of years of data collection, licensing agreements, proprietary labeling methodologies, and quality-control processes, and it is essential to the training and ongoing improvement of Lumos's machine-learnin

5. Confidential Product Roadmap Documents for 2023–2025. These include unreleased specifications and strategic plans for "LumosEdge 3.0," a forthcoming major release of Lumos's flagship product. The LumosEdge 3.0 Product Roadmap is a 37-page confidential document detailing planned features, architectural changes, market positioning, competitive analyses, and release timelines for the period 2023 through 2025. Lumos h

4. Evidence of Misappropriation Lumos's internal IT security team, in conjunction with a third-party digital forensics firm retained for this purpose, initiated a comprehensive investigation on December 12, 2022 upon detection of anomalous data-exfiltration activity during the final weeks of the three Former Employees' respective tenures at Lumos. That investigation has revealed a pattern of coordinated and deliberat

5. NovaSpark's Liability Based on the foregoing, NovaSpark is liable for trade-secret misappropriation under the California Uniform Trade Secrets Act, California Civil Code sections 3426 through 3426.11. The California Uniform Trade Secrets Act defines "misappropriation" to include both the acquisition of a trade secret by a person who knows or has reason to know that the trade secret was acquired by improper means,

6. Demands On behalf of Lumos Analytics Inc., Calderwood & Harkness LLP hereby demands that NovaSpark Technologies Inc. immediately take each of the following actions: 6.1 Cease All Use and Disclosure of Lumos Proprietary Information NovaSpark must immediately cease and desist from all use, disclosure, exploitation, reproduction, distribution, or other utilization of any and all Lumos proprietary information and trad

7. Warning of Imminent Litigation Should NovaSpark fail to comply fully and promptly with each of the foregoing demands, Lumos is prepared to — and will — immediately commence litigation against NovaSpark Technologies Inc., Rajiv Anand, Serena Mallick, and Derek Yun in the Superior Court of the State of California, County of Santa Clara, asserting claims including, but not limited to:

1. Misappropriation of trade secrets under the California Uniform Trade Secrets Act, California Civil Code sections 3426 through 3426.11;

2. Breach of contract, including breach of the PIIAA obligations described herein;

3. Breach of the duty of loyalty owed by the Former Employees to Lumos during their employment;

4. Unfair business practices in violation of California Business and Professions Code section 17200 et seq.; and

5. Conversion of Lumos's proprietary materials and intellectual property. In such litigation, Lumos will seek all available remedies at law and in equity, including without limitation: temporary restraining orders and preliminary and permanent injunctive relief enjoining NovaSpark from any further use, disclosure, or exploitation of Lumos's trade secrets and proprietary information; compensatory damages in an amount

8. Reservation of Rights Lumos expressly reserves all rights, remedies, and claims available to it at law and in equity, whether or not specifically enumerated in this letter. Nothing contained herein shall be deemed or construed as a waiver of any right, remedy, claim, or defense, nor as an election of remedies. Lumos's decision to provide this notice and an opportunity to cure shall not be construed as an obligatio