Comment by jjeaff

In California, you would have the burden of proof that your business was damaged by the actions of the employee you allege is in breach of contract. The business would also be on the hook for the employees legal fees if they can't prevail.

Add to that, i don't see any copying of a "business model" here. Seeing as the ex-intern is not even charging for his software and is giving away the source code for free.