Misappropriation

News & Analysis as of

Federal Trade Secrets Act

At long last, there is a federal civil cause of action for trade secret misappropriation under the Defend Trade Secrets Act (DTSA) enacted in 2016. The DTSA complements state law remedies, which are not preempted,...more

Defending A Former Employee On a Non-Compete Or For Misappropriation Of Trade Secrets? Read This.

Do you really have to rush to Court to obtain an injunction for a misappropriation of trade secrets? Maybe not. But for an injunction enforcing a non-compete agreement, maybe yes. ...more

Federal Copyright Preemption Extends to Preempt State Laws Which Protect Material That Congress Expressly Declined to Protect...

Recently, we discussed the broad reach of the doctrine of Federal Copyright Preemption. In Ultraflo Corp. v. Pelican Tank Parts, Inc. 2017 U.S. App. LEXIS 509 (Jan. 11, 2017), the Fifth Circuit made clear that not only does...more

Intellectual Property Bulletin - Winter 2017

A Smooth Patch in a Rough Road? Governmental Transition and Intellectual Property - Whenever a new Congress convenes, some IP issues come to the fore while others take a back seat. Transition to a new administration in...more

Misappropriation Versus the Copyright Act: Round 2 in the Fifth Circuit

A few months ago, Trade Secrets Watch covered the GlobeRanger Corp. case in which the Fifth Circuit joined 10 other circuits in determining that the Copyright Act does not preempt state trade secret misappropriation claims....more

A Primer on “Cross-Referencing” the DTSA Whistleblower Immunity Provision Following 4 Simple Steps

In the spring of 2016, the Defend Trade Secrets Act (“DTSA” or “Act”) was signed into law providing trade secret owners for the first time a federal civil cause of action for trade secret misappropriation. Although the DTSA...more

Gavel to Gavel: Trade secrets now a federal case

Almost all businesses possess at least some trade secrets, which could include a wide variety of information, including customer lists, formulas, manufacturing processes, data compilations, marketing plans and many other...more

Data Theft And What’s “Tangible”: New York Appellate Division Reinstates Conviction Of Former Goldman Sachs Programmer Sergey...

The law often lags behind developments in the tech world. One problem for employers seeking to protect their data is that some anti-theft and trade secret protection laws drafted long ago refer to “goods” and “tangible”...more

Top Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2016

Continuing our annual tradition, we present the top developments/headlines for 2016 in trade secret, computer fraud, and non-compete law. Please join us for our first webinar of the New Year on February 2, 2017, at 12:00 p.m....more

This Week In Securities Litigation

During a two week period divided by the Inauguration, the Commission filed just under 40 actions. Chair Mary Jo White stepped down from her position at the agency after delivering her departing remarks at the New York...more

From New York and Delaware Courts, a Double Blow of Bad News for Sergey Aleynikov

Sergey Aleynikov, a former computer programmer at Goldman, Sachs & Co., has been on a legal roller coaster for the past few years. In the span of few days, that roller coaster plummeted steeply—twice. First, on January...more

Will The Massachusetts Legislature Finally Be Able To Keep Its New Year’s Resolution to Pass Non-Compete Reform?

Last Friday, on January 20, 2017, the Massachusetts Legislature began its annual tradition of attempting to promulgate non-compete and trade secret reform in the Commonwealth. A new bill has been filed by the same legislators...more

Whistle While You Work?: First Court To Rule On DTSA’s Whistleblower Immunity Provision Treats It As An Affirmative Defense

The Defend Trade Secret Act (“DTSA”) contains a whistleblower immunity provision which could have a significant impact on employers. Until last month, however, no court had interpreted this provision which provides that no...more

Aleynikov Conviction Reinstated by New York Appellate Court

Sergey Aleynikov was tried and convicted on criminal charges by both a Federal and a New York state jury; both times, his conviction was reversed. But his luck on appeal may have run out. The Appellate Division, First...more

Did you know... Are You in Position to Take Advantage of the New Federal Defend Trade Secrets Act?

Recently, President Obama signed into law the Defend Trade Secrets Act of 2016 (DTSA) which amends the Economic Espionage Act of 1996, codified at 18 U.S.C. §§ 1831 et seq. Key benefits of the DTSA includes the option...more

Texas Court of Appeals Rules That Mere Suspicions of Trade Secret Misappropriation Are Insufficient to Trigger the Discovery Rule

Applying new Texas Supreme Court precedent, a Texas Court of Appeals recently held that a six-year-old cease-and-desist letter alleging trade-secret misappropriation did not constitute proof of knowledge for purposes of the...more

Supreme Court Deflates Sino Legend Cert Petition

On Monday, January 9, the Supreme Court denied a petition for certiorari from Sino Legend Chemical Co., Ltd., concluding litigation that began with a Section 337 complaint filed more than four-and-a-half years ago by SI...more

Are Forensic Accountants an Attorney’s Silver Bullet?

From the art of interviewing, to recognizing mathematical irregularities, and following the money, Forensic Accountants are a proven invaluable tool for Attorneys and their clients. “Finding” the money combines the skill...more

“It’s a Free Country, Right?” Court Declines to Enjoin Ex-Free Country Ltd. Employees From Contacting Customers on Purloined...

Within days of each other, your clothing company?Free Country Ltd.?loses two employees who decamp to a rival to set up a competing apparel line. You discover that just before leaving, they transferred some 50,000 documents...more

New ITC Investigations Surge in 2016

The ITC’s docket experienced a strong uptick in 2016, with new investigations approaching the record highs of 2010 and 2011, the years of the smartphone wars. 54 new investigations were instituted at the ITC in 2016,...more

Real Property & Title Insurance Update: Week Ending January 13, 2017

REAL PROPERTY UPDATE - Foreclosure: where a valid mortgage properly encumbers the subject property, an incorrect deed and a reformation of deed count are not fatal to a foreclosure action - Heartwood 2, LLC v. Dori, Case...more

How Employment Agreements Can Protect An Employer's Intellectual Property And Defend Against Claims of Misappropriation

At approximately 4.6%, the current national unemployment rate is lower than it has been since before the 2008 recession. Generally speaking, this means that companies are hiring new employees. While hiring new employees is...more

New Federal Law Provides Additional Protection for Trade Secrets

For the first time in U.S. history, a new law was recently added providing federal protection for businesses’ trade secrets. The Defend Trade Secrets Act, 18 U.S. Code Section 1831 et. al. (DTSA) became law as an amendment to...more

Simple Steps to Help Keep Your Trade Secrets Safe

As illustrated by the recent lawsuit by America’s Test Kitchen against celebrity chef Christopher Kimball, companies in a variety of industries are vulnerable to losing their trade secrets....more

U.S. CFTC Enforcement: Key Compliance Takeaways From 2016

In 2016, the U.S. Commodity Futures Trading Commission brought several significant enforcement actions involving computerized robo-advisors, recordkeeping and reporting requirements, insider trading, spoofing, market...more

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