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We first reported about this case here: http://wombletradesecrets.blogspot.com/2009/04/starwood-hotels-v-hilton-hotels-trade.html.

Nielsen Business Media is reporting that the parties are talking settlement.

After Starwood filed the suit last spring, Hilton suspended development of its Denizen hotel brand and placed the two former Starwood Luxury Brands Group executives accused of stealing trade secrets on paid administrative leave.The suit appeared headed toward trial, as demanded by Starwood, but in a court filing this month, Charles Gilman, a lawyer for Cahill Gordon & Reindel, which represents Starwood, asked the judge to postpone a hearing set for Nov. 18 until the week of Dec. 14, noting that "the parties have been exploring the possibility of settlement."A Hilton spokesperson last week said the company has no further comment "beyond the document that was filed last week." Similarly, a Starwood spokesperson offered "no comment at this time."

We'll report back regarding any developments in this regard. We'd bet that the topics for settlement include some hands-off "covenant not to solicit or hire" employees provision and additional restrictions on Hilton's abilities to develop the Denizen hotel brand or hotel concepts that look and operate like the Denizen brand was supposed to. More when we learn it.

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