News & Analysis as of

Confidential Information Misappropriation

Lessons Learned: Tips on How to Allege and Argue Trade Secret Misappropriation at a Preliminary Injunction Hearing

Since its passage in 2016, the Defend Trade Secrets Act (DTSA) has increasingly become a valuable tool for employers seeking to enjoin former employees and competitors from misappropriating trade secrets. However, in requests...more

Defend Trade Secrets Act: Recent Developments Raise Questions About Inadvertent Disclosure

The Defend Trade Secrets Act (“DTSA”), signed into law last year by President Obama, revolutionized intellectual property law by creating a new civil cause of action permitting trade secret owners to sue for misappropriation...more

Key Employee Departures and Trade Secret Risk Assessment

by Seyfarth Shaw LLP on

It’s Friday afternoon and the conversation goes a little like this, “Wait, what? They’re leaving? Where are they going? Is there any opportunity to help them reconsider?” When a key employee departs an organization, it can...more

Series: Defend Trade Secrets Act | Stopping Further Leaks: Protecting Trade Secrets While Litigating Misappropriation

by Fish & Richardson on

Trade secrets derive their commercial value from being secret. When trade secrets are misappropriated, litigation may be necessary to stop a competitor from exploiting them in the marketplace. Yet litigating...more

DTSA and Ex Parte Seizure – Lessons From The First Ex Parte Seizure Under The DTSA

The Defend Trade Secrets Act (DTSA) Ex Parte Seizure mechanism allows victims of trade secret misappropriation to quickly prevent further dissemination of confidential information by asking a court to direct federal marshals...more

Series: Defend Trade Secrets Act | Lessons in Surviving a Motion to Dismiss

by Fish & Richardson on

Our colleague Olga May recently blogged about how to plead a claim under the DTSA. In this next installment of the DTSA series, we’ll take a deeper look at some samples from the rapidly-expanding set of decisions addressing...more

Series: Defend Trade Secrets Act | Pleading A Claim Under the DTSA

by Fish & Richardson on

Courts have had over a year to address the pleading requirements under the federal Defend Trade Secrets Act (“DTSA”), after it took effect in May 2016. The general pleading standard remains the plausibility test under the...more

PILLOW TALK: A Threat to Trade Secrets?

It turns out that, even in romantic relationships, some things are best kept secret. On July 7, 2017, Teva Pharmaceuticals USA, Inc. filed a complaint in the Eastern District of Pennsylvania alleging that a former executive...more

Conviction for Economic Espionage, Sale of Trade Secrets to China

by McDermott Will & Emery on

The US Court of Appeals for the Ninth Circuit upheld the first federal jury criminal conviction for economic espionage and theft of trade secrets under the Economic Espionage Act of 1996 (EEA), even though the owner of the...more

Outside Constitutional Protection, Within Anti-SLAPP Statute

by McDermott Will & Emery on

Addressing the issue of defending against claims seeking to remedy alleged misappropriation or misuse of a business’s trade secrets or confidential information by invoking the Texas Citizens Participation Act (TCPA), the...more

The Third Circuit Addresses the Defend Trade Secrets Act and Appears to Have Applied the Inevitable Disclosure Doctrine

by Seyfarth Shaw LLP on

The Defend Trade Secrets Act (DTSA) states very clearly that an injunction issued pursuant thereto may not “prevent a person from entering into an employment relationship,” and that any conditions placed on a former...more

Illinois Federal Court Allows Inevitable Disclosure Theory in Defend Trade Secrets Act Case

by Seyfarth Shaw LLP on

On May 11, 2017, a Northern District of Illinois federal court ruled that a Plaintiff properly alleged misappropriation under both the federal Defend Trade Secrets Act (DTSA) and the Illinois Trade Secrets Act (ITSA) in a...more

Non-Compete News: Using Defend Trade Secrets Act, California Court Stops Deletion of Misappropriated Confidential Information

by FordHarrison on

Having just celebrated its one-year anniversary, the Defend Trade Secrets Act (DTSA) triggered an uptick in federal litigation concerning the fight to protect corporate trade secrets. Though no court has issued the elusive ex...more

Pooley’s Corner: What Divorce Court Teaches About Trade Secret Litigation

I still remember the day I decided never to do another divorce case. My client called to tell me that her ex was taking the kids to his mother’s house where she would look for holes in their socks and then rip them with her...more

State And Federal Trade Secrets Claims Upheld By Northern District Of Illinois

by Jackson Lewis P.C. on

A May 11, 2017 decision by Judge Chang, in the Northern District of Illinois, found misappropriation alleged under the Defend Trade Secrets Act (DTSA) and the Illinois Trade Secrets Act (ITSA), in a case where the employee...more

Employee Mobility and Trade Secret Protection in California: What Works and What Doesn’t

by Epstein Becker & Green on

California has always been a challenging jurisdiction for employers in terms of limiting unfair competition by former employees and protecting trade secrets. However, employers in the state can significantly enhance their...more

Don’t Forget to Establish Personal Jurisdiction in Defend Trade Secrets Act Cases

by Seyfarth Shaw LLP on

It is well known that 18 U.S.C. § 1836, et seq. (the Defend Trade Secrets Act or “DTSA”) finally provides a mechanism for pursing trade secret claims in federal court. A recent decision, however, serves as an excellent...more

It’s Positioning That Matters: Texas Court of Appeals Holds Proof Of Actual Use Not Required At The Temporary Injunction Phase

Christopher Hughes worked for Age Industries, Ltd. (“AI”) for nearly 20 years. He was the general manager of one of AI’s branch facilities and a limited partner of the company. In this role, Hughes had access to much of AI’s...more

Watch for the Fox in Your Henhouse: Gig Companies at Risk

by Fisher Phillips on

Intellectual property threats (IPT) to companies participating in the gig economy may be greater than those experienced by traditional business. While this may seem self-evident to some, reflection on the matter confirms to...more

The Defend Trade Secrets Act and Whistleblowers: Protections and Vulnerabilities

by Butler Snow LLP on

President Obama signed into law the Defend Trade Secrets Act (“DTSA”) during his last year in office. Most notably, the DTSA creates a private federal civil cause of action for misappropriation of trade secrets. If that...more

District Court Rules That Trader Can Be Liable For Insider Trading On Misappropriation Grounds Even When Information Was Not...

by Shearman & Sterling LLP on

On March 20, 2017, Judge Juan Sanchez of the U.S. District Court for the Eastern District of Pennsylvania denied Defendant Leon Cooperman’s motion to dismiss an insider trading claim brought by the Securities and Exchange...more

Theft of confidential information results in only nominal damages for employer

by Allen & Overy LLP on

An employer was awarded only nominal damages from former employees who copied the employer’s confidential information but made no use, or limited use, of that information and did not cause any damage to the employer. So...more

Non-Use Agreement Need Not Precede Disclosure of Confidential Information

A Pennsylvania federal court held yesterday that an agreement not to use confidential inside information for trading purposes need not precede the receipt of that information in order to create liability under the...more

Failure to Explain Why Misappropriated Information is a Trade Secret May Lead to Dismissal of a DTSA Complaint With Prejudice

A recent decision in the Western District of Kentucky highlights the importance of explaining in a complaint under the Defend Trade Secrets Act why the allegedly misappropriated information qualifies for trade secret...more

All Trade Secrets Must Be Secret; But Not All Secrets are Trade Secrets

A pair of recent cases illustrate two important interrelated points about trade secret law: First, all trade secrets must be secret. Second, and less obvious, not all secrets are trade secrets....more

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Cybersecurity

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