News & Analysis as of

Misappropriation

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

Federal Circuit Affirms Finding Of Non-Arbitrability Under “Wholly Groundless” Standard

by Carlton Fields on

Stephen Evans, doing business as Roof n’ Box, Inc. (“RNB”), had a contract with Building Materials Corp. of America, (“BMCA”) to promote RNB’s “Roof N Box” product, a three-dimensional roofing model, to building-construction...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

Court Rules Decisively in Battle Between eDiscovery Providers Over Hired Sales Agents: eDiscovery Case Law

by CloudNine on

In a lawsuit filed by DTI against LDiscovery and four former sales agents of DTI who were hired by LDiscovery, claiming they misappropriated trade secrets, interfered with client relationships and breached their contracts, an...more

This Week In Securities Litigation

by Dorsey & Whitney LLP on

In a holiday shortened week the Commission filed four actions: One arose from the failure of an adviser who arranged a transaction between two managed funds to honor the terms promised to one fund; a second charged the sister...more

California Federal Court Finds CUTSA Preemption on Unfair Competition Claim in Uber Row

by Seyfarth Shaw LLP on

Uber’s ongoing battle with Waymo in the Northern District of California federal court over technology used in self-driving cars provided another significant decision concerning the broad scope of trade secret preemption under...more

Default Determination Highlights The Importance Of Alleging Every Element

by Jones Day on

A recent ITC decision, stemming from a default initial determination, underscores the importance of alleging every element in a complaint. 19 U.S.C. § 1337(g)(l) provides that the Commission, when making a determination on...more

Pooley’s Corner: Was America’s Industrial Revolution Based on Trade Secret Theft?

When I was in Geneva trying to engage developing countries about the value of robust IP laws, occasionally I heard a response like this: “What hypocrites you are! The U.S. economy got its start by stealing from abroad. Why...more

Gnireenigne

Reverse engineering (now does the title make sense?) is a common and legitimate business practice. The federal Defend Trade Secrets Act even specifically excludes reverse engineering from the definition of misappropriation:...more

Give a Man Cupcake Sushi, and He’ll Have Dessert for a Day; Teach a Man to Make Cupcake Sushi, and He’ll Rip You Off

Lori Shubert and her company, Cupcake Sushi, LLC, filed an interesting lawsuit against Santiago and his associates, doing business as Sushi Sweets, for patent infringement, trademark infringement, misappropriation of trade...more

Supreme Court Deals Blow to SEC By Applying Five-Year Statute of Limitations to Disgorgement Remedies in SEC Enforcement Actions

On June 5, 2017 the Supreme Court dealt a significant setback to the Securities and Exchange Commission (“SEC”) by limiting its power to extract ill-gotten profits from securities laws violators....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

SEC Disgorgement Constitutes a Penalty – How Far Will the Argument Go?

by Sedgwick LLP on

On June 5, 2017, Justice Sotomayor delivered the unanimous opinion in Kokesh v. SEC, 2017 U.S. LEXIS 3557 (June 5, 2017), holding that disgorgement collected by the Securities and Exchange Commission (SEC) constitutes a...more

11th Circuit Hears Oral Argument in LabMD Case

Recently, the United States Court of Appeals for the Eleventh Circuit, sitting in Miami, heard oral argument in the case of LabMD, Inc. v. Federal Trade Commission, No. 16-16270. ...more

This Week In Securities Litigation

by Dorsey & Whitney LLP on

The first criminal charges against a major international bank and four of its executives tied to the market crisis were brought this week by the SFO. The charges were based on actions the firm took with private lenders to...more

Amendments to Texas UTSA Bring it Closer in Line with DTSA, but Differences Remain

Just four years after the Lone Star State ended its holdout by becoming the 48th State to adopt the Uniform Trade Secrets Act, Texas passed a bill to amend its enactment. The bill was signed by Texas Governor Greg Abbott on...more

Texas Legislature Clarifies and Expands the Texas Uniform Trade Secrets Act

by Seyfarth Shaw LLP on

On May 19, 2017, Texas Governor Greg Abbott signed into law several amendments to the Texas Uniform Trade Secrets Act (“TUTSA”), located in Chapter 134A of the Texas Civil Practice & Remedies Code. The amendments go into...more

Implications of the Supreme Court's Kokesh Decision

by WilmerHale on

Earlier this month, the Supreme Court ruled unanimously in Kokesh v. SEC that a claim for disgorgement arising from the violation of federal securities law constitutes a “penalty” for purposes of the general statute of...more

Series: Defend Trade Secrets Act | The DTSA and Inevitable Disclosure Meet: Molon Motor and Coil Corp. v. Nidec Motor Corp.

by Fish & Richardson on

A recent DTSA decision from the District Court for the Northern District of Illinois tackled the inevitable disclosure doctrine—an area that DTSA aficionados have been keenly watching given the statute’s express disavowal of...more

Court Grants Motion for Terminating Sanctions Against Defendants for Intentional Spoliation: eDiscovery Case Law

by CloudNine on

In Omnigen Research et. al. v. Wang et. al., No. 16-00268 (D. Oregon, May 23, 2017), Oregon District Judge Michael J. McShane granted the plaintiffs’ Motion for Terminating Spoliation Sanctions and agreed to issue an Order of...more

Supreme Court Deals Major Blow to SEC Disgorgement Claims in Kokesh

by Baker Donelson on

The U.S. Securities and Exchange Commission (SEC) may now only collect disgorgement from defendants within five years of filing suit. On June 5, the United States Supreme Court ruled unanimously that the five-year statute of...more

Reflections on Kokesh v. SEC: Potential Ramifications of SEC Disgorgement Being a Penalty

by King & Spalding on

In the week since the Supreme Court’s unanimous decision in Kokesh v. SEC, which rejected the Securities and Exchange Commission’s longstanding position that disgorgement was an equitable remedy not subject to the five-year...more

Emerging Issues In the Defend Trade Secrets Act’s Second Year

by Seyfarth Shaw LLP on

One year after its enactment, the Defend Trade Secrets Act (DTSA) continues to be one of the most significant and closely followed developments in trade secret law. The statute provides for a federal civil cause of action for...more

Patents or Trade Secrets? Yes, Please.

by Hogan Lovells on

Most energy companies implement Intellectual Property (“IP”) strategies to protect and exploit company IP (offense) and navigate third-party rights (defense). Traditionally, these policies emphasize patents. But today’s...more

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