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Barnes & Noble is being sued by Spring Design for misappropriation of trade secrets and violating a non-disclosure agreement, reports Paid Content.

Cupertino-based Spring Design claims B&N “copied” features from its dual-screen Alex into the Nook. The Nook has a 6-inch grayscale screen for reading with a 3.5” color LCD below for touchscreen navigation; Alex includes Duet Navigator as a trademark.

Spring Design announced its Alex e-reader just days before Barnes & Noble formally unveiled the Nook, notes C/Net. Both e-readers use the Android operating system and combine an e-ink screen with a color touch screen.

Spring Designs says it is still looking for distribution partners, but the e-reader will likely be available by the end of the year. It also connects to the Web via Wi-Fi or 3G (CDMA or GSM).

Alex features a color lower touch screen with a 6-inch electronic paper display. Using its built-in 3G modem or Wi-Fi, the Alex will let you visit a web site, select a story, and the device will reflow it to the Electronic Ink screen. The color screen can then be switched off to save power.

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