Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Exclusive

Lightspeed CEO sued for allegedly stealing tech used to launch firm

Companies tied to a former employer of Dax Dasilva are charging in a lawsuit that the Lightspeed founder stole key technology and used it to launch his $3.8-billion firm.

Lawyers acting on behalf of numbered companies linked to Frederick Rosenberg, then-president of Montreal-based Brenrose Solutions, say Dasilva used the source code developed at his company to build a point-of-sale software (POS) that would later become Lightspeed’s first product.

Dasilva has spent the past four years unsuccessfully trying to get the lawsuit dismissed and attempting to negotiate, according to over a hundred pages of documents filed in Quebec Superior Court reviewed by The Logic. He and Lightspeed have denied all wrongdoing and filed a countersuit. 

Exclusive

Lightspeed CEO sued for allegedly stealing tech used to launch firm

By Zane Schwartz
Lightspeed POS CEO Dax Dasilva at the company's head office in Montreal in September 2019.
Lightspeed POS CEO Dax Dasilva at the company's head office in Montreal in September 2019. Photo: Christinne Muschi/Bloomberg via Getty Images
Aug 5, 2020
A A
A Small A Medium A Large
Share

Gift

Share

Companies tied to a former employer of Dax Dasilva are charging in a lawsuit that the Lightspeed founder stole key technology and used it to launch his $3.8-billion firm.

Lawyers acting on behalf of numbered companies linked to Frederick Rosenberg, then-president of Montreal-based Brenrose Solutions, say Dasilva used the source code developed at his company to build a point-of-sale software (POS) that would later become Lightspeed’s first product.

Dasilva has spent the past four years unsuccessfully trying to get the lawsuit dismissed and attempting to negotiate, according to over a hundred pages of documents filed in Quebec Superior Court reviewed by The Logic. He and Lightspeed have denied all wrongdoing and filed a countersuit. 

Talking Point

Dax Dasilva, the CEO of one of Canada’s fastest-growing tech companies, is facing a $30-million lawsuit from companies tied to a former employer. He and Lightspeed have denied all wrongdoing, and have been unsuccessfully trying to get it dismissed for the last four years.

Lightspeed is one of Canada’s fastest-growing tech firms, with a market cap of about $3.8 billion. Its stock has more than doubled since going public on the Toronto Stock Exchange in March 2019. The firm has grown to over 900 employees across 14 offices worldwide. In 2019, Dasilva was named Innovator of the Year by both the Canadian Innovation Exchange and The Globe and Mail. 

According to the suit, Dasilva worked at Brenrose and helped develop a POS software called Iron, which he then used to develop Lightspeed’s Onsite product. About six months after leaving Brenrose, Dasilva launched Lightspeed and sold the Onsite software to stores offering Mac computers and other Apple products, the same kind of firms to which Brenrose had sold, the suit reads. 

Brenrose filed for bankruptcy in October 2004, at which point it owed creditors about $2.8 million. Two Quebec-based firms, 99257 Canada Ltd. and 3811981 Canada Inc., subsequently acquired Iron and all intellectual property rights to the software, according to a December 2019 ruling by the Quebec Superior Court. The two firms filed the lawsuit against Dasilva and Lightspeed and have agreed to share the payout with Brenrose’s former president Rosenberg if they win. 

Dasilva and Lightspeed have jointly filed a countersuit accusing the defendants of “proceeding without conducting any reasonable inquiry into the facts alleged, most importantly in respect of whether or not Lightspeed Onsite actually reproduces any substantial part of IRON, which it clearly does not.”

Lightspeed declined to comment. Dasilva and attorneys for the numbered companies did not respond to requests for comment. Attempts to contact Rosenberg were unsuccessful.

The lawsuit was first filed four years ago in June 2016. The parties entered into negotiations, but after several extensions, those talks broke down. In court filings from April 2018, Lightspeed’s attorney asked a judge to dismiss the lawsuit, declare it “abusive” and order the payment of damages. The company made the same request in June 2019, and also asked the court to force several individuals and corporations to be added to the lawsuit. 

In a December 2019 ruling, the Quebec Superior Court declined to add Rosenberg to the case in a personal capacity, but added Hyman Bloom and Émile Sylvestre, businessmen involved with the companies that purchased the assets of Brenrose Solutions after it went bankrupt.

The numbered companies are asking the court for $27 million, or half the profits they claim Lightspeed made “due to the illegal use and copying” of the Iron software between 2005 and 2016. In addition, they’re seeking $3 million in damages and an “ongoing royalty,” at a percentage to be determined, on future sales.  

“In a nutshell: Mr Dasilva participated in the development of ‘IRON’ while he was employed by Brenrose, then left Brenrose with ‘IRON’ to create Lightspeed and sell a product that is very similar to and based on ‘IRON’ to the same customers Brenrose was targeting when developing ‘IRON,’” reads the suit. 

In court filings, Dasilva and Lightspeed acknowledged that the two men developed the Iron software together and that Onsite uses the same programming language, but said they were “dramatically different products,” and that Dasilva developed Onsite after leaving Brenrose, without reproducing any part of Iron. He “was particularly careful not to do so as he knew that Mr. Rosenberg was a litigious person,” according to the suit. 

The plaintiffs’ court filings put it differently: “Lightspeed got its start as a retail system built for a Mac dealership with four stores. The project ended up getting shelved, but other Apple dealerships were interested, so Dasilva took the best ideas and started Lightspeed in 2005.”

Both Dasilva and Rosenberg are listed as authors of the Iron software, according to a May 2016 filing with the Canadian Copyright Register. 

The Logic first reported on the copyright suit in February 2019, ahead of Lightspeed’s initial public offering. In its prospectus, the firm disclosed potential damages of $30 million from the lawsuit. Asked about the court challenge a month later, Dasilva said, “I don’t want to comment too much on it, because these kinds of lawsuits happen when companies are successful. It’s without merit and the people behind it are not in technology. I’ll just leave it at that.” 

When asked by The Logic about the newly discovered court documents acknowledging that he developed the Iron software with Rosenberg, Dasilva did not respond. 

Gift the full article

According to the filings, Lightspeed’s attorney questioned the $30 million in damages, which was calculated based on the firm’s overall financial health. The company said the Onsite software “has never accounted for more than a third of Lightspeed’s overall revenues,” and made up only four per cent in both 2017 and 2018. 

For the first three months of 2020, Lightspeed reported $210 million in unrestricted cash. The company will report financial results for the period covering March to June on Thursday. 

With files from Martin Patriquin

Update: This piece has been updated with further information about the May 2016 filing with the Canadian Copyright Register. 

#Lightspeed

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Lightspeed POS CEO Dax Dasilva at the company's head office in Montreal in September 2019.

Photo: Christinne Muschi/Bloomberg via Getty Images

Most Popular This Week

A man wearing a dark shirt is pictured against a brick wall. He is looking directly into the camera. with a serious facial expression.
The Big Read

How Sheldon McCormick brought Communitech back from the brink

By Catherine McIntyre
A skyscraper on Bay Street in Toronto, viewed from street level looking up, with a traffic light and street sign in the foreground against a blue sky with clouds.
Analysis

Canada’s AI hiring boom has reached Bay Street’s top executives

By Chaimae Chouiekh
A shot from above of five people clustered around a table, all working on near-identical laptop computers. Their computer bags lie on the floor and some are wearing yellow lanyards.
News

1 in 3 professionals are using unauthorized AI on the job, global survey finds

By Anita Balakrishnan
A head-on shot of James Neufeld seated with others at a round table in a meeting room. Eleanor Olszewski is seated to his left. There's a laptop open in front of Neufeld.
News

For this Alberta tech firm, ‘Buy Canadian’ isn’t working as advertised

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A man sitting in a chair wearing a dark suit and jacket against a light background. The man is wearing glasses and has a serious facial expression.
Commentary

Carmichael: Was Chicken Little stirring panic, or just taking precautions?

By Kevin Carmichael

Briefing

Carney plans to discuss US$135B defence bank with new U.K. prime minister

By Chaimae Chouiekh   |   Jun 26, 2026

B.C. nearing federal MOU of its own as talks continue on Alberta’s West Coast pipeline

By Meghan Potkins   |   Jun 26, 2026

Quebecor urges CRTC to block Corus restructuring as part of takeover push

By Laura Osman   |   Jun 26, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Analysis

It turns out Trump does need something from Canada—aluminum

By Joanna Smith   |   Jun 25, 2026
A close-up of a made-in-Canada stamp on the end of a cylindrical piece of raw aluminum.
Exclusive

Ssense has laid off photo and make-up teams and says AI will do much of their work

By Catherine McIntyre   |   Jun 22, 2026
News

Alberta to free up a huge amount of power to attract Big Tech and its data centres

By Meghan Potkins   |   Jun 24, 2026
A wide landscape shot of high-tension power lines over green and golden fields in rolling countryside.
News

Canada gets low returns from events like the World Cup. Ottawa wants to know why

By Laura Osman   |   Jun 19, 2026
A wide shot of the Vancouver skyline shot from the east, featuring the Science World geodesic dome painted as a FIFA 2026 World Cup soccer ball. B.C. Place stadium appears on the right side of the frame.
News

What makes a nuclear reactor Canadian? Billions of dollars ride on the answer

By David Reevely   |   Jun 23, 2026
A bowl-shaped structure surrounded by concrete barriers. A white sign with a blue Westinghouse logo is suspended across one side of the structure.
News

How a former Russian TV anchor ended up suing Canada’s go-to rocket company

By David Reevely   |   Jun 22, 2026
A shot across an expanse of low forest of a rocket launching into blue skies.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account