Medtech takes developers of indici PMS to court

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eHealthNews.nz editor Rebecca McBeth 

Two GP practice management systems providers are locked in a legal dispute following an accusation by Medtech that Valentia Technologies and three other defendants have conspired to copy MedTech's software and use its confidential information.

A High Court judgment says the four defendants, Midlands Health Network, Pinnacle Incorporated, Pinnacle Ventures and Valentia Technologies, have a case to answer and restrains them from modifying or destroying material related to Medtech’s products.

The defendants deny the charges and a statement from Pinnacle says the Pinnacle Group “intends to vigorously defend itself”. 

Pinnacle Ventures is the commercial and innovation arm of the Midlands Health Network and worked in conjunction with Valentia over several years to develop the indici PMS.

The cloud-based mobile system has been shaking up the country’s PMS market and was recently selected by the country’s largest PHO ProCare after a year-long PMS review.

Justice Whata’s judgment, delivered on 27 November 2018, says that Medtech was made aware of the alleged conspiracy when a staff member was inadvertently sent an email chain referring to Valentia’s use of Medtech Web.

The High Court judgment says the evidence is “sufficient to support a serious case of conspiracy to unlawfully use Medtech software.

“The email correspondence self-evidently suggests that the fourth defendant, Valentia, has had access to and been using the Medtech Web software without any express authorisation to do so,” the judgment says.

Pinnacle Group says in a statement that there has been no copying or misuse of confidential information.

“Pinnacle has not copied any of MedTech’s software. It strongly believes indici is a major step forward and has no interest in copying any other system,” it says.

The judgment says an IT expert has recommended producing a forensic image of all the defendants’ email services, files and folders related to Indici, devices on which Medtech software is installed and Valentia’s software development environment.

However, the justice is concerned about this intrusion into the defendants’ privacy and says an urgent hearing will be held to determine whether it should be done.

“While there is reasonable cause to suspect a conspiracy of the type alleged has taken place, I prefer to afford the defendants an opportunity to oppose such an invasion of their private data,” the judgment says.

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