Statement on the Judgment in the Dispute Between PhenixID and FortifiedID
Statement on the Judgment in the Dispute Between PhenixID and FortifiedID
Örnsköldsvik, Sweden – June 23, 2026 – The Swedish Patent and Market Court of Appeal has issued its judgment in the case between PhenixID AB and FortifiedID AB. The Court overturned the previous ruling of the Patent and Market Court and found that FortifiedID had intentionally misappropriated PhenixID’s trade secrets by acquiring and using portions of PhenixID’s source code in violation of the Swedish Trade Secrets Act.
PhenixID is part of the Clavister group and develops solutions for identity and access management (IAM), strong authentication, and digital identity. Since 2025, Clavister’s and PhenixID’s offerings have been marketed under a unified brand, bringing together the companies’ expertise in cybersecurity, network security, and identity management.
The case concerned the protection of PhenixID’s source code, which PhenixID asserted on two legal grounds: copyright and trade secret protection. The Patent and Market Court of Appeal examined both claims and found that FortifiedID had intentionally misappropriated the source code in violation of the Swedish Trade Secrets Act. The Court agreed with the conclusions of PhenixID’s expert witnesses that portions of PhenixID’s source code had been used in the development of FortifiedID’s products. Furthermore, the Court concluded that the evidence left no room for any other finding than that FortifiedID had retained possession of the trade secrets.
As a result of the judgment, FortifiedID has been prohibited, under penalty of a SEK 1 million fine, from using or disclosing the source code in question. FortifiedID has also been ordered to pay damages of SEK 750,000 plus interest to PhenixID and to bear the cost of publishing information regarding the judgment.
In its decision, the Court emphasised that PhenixID’s source code possesses substantial economic value and that the company has a strong interest in protecting its trade secrets. The judgment underscores the importance of enabling companies to safeguard their investments in research, development, and technical expertise.
"The protection of our intellectual property, technology, and trade secrets is of fundamental importance to PhenixID. For more than a decade, we have invested significant resources in developing solutions for identity and access management, strong authentication, and digital security. We welcome the Court’s decision and view the judgment as an important affirmation of the value of innovation, technical expertise, and long-term investment in product development," said John Vestberg, president and CEO of Clavister.
The judgment has not yet become final. The Patent and Market Court of Appeal has expressly stated that the case raises issues of importance for legal precedent and may therefore be appealed to the Swedish Supreme Court. Any appeal must be filed no later than July 8, 2026. The Supreme Court will then determine whether leave to appeal will be granted.