News & Analysis as of

Misappropriation

Defend Trade Secrets Act Nears Year One: What Employers, Trade Secret Owners Need to Know

by Holland & Knight LLP on

An employer or trade secret owner can now assert a federal private cause of action for misappropriation of trade secrets under the Defend Trade Secrets Act (DTSA), 18 U.S.C. §1836(b), if “the trade secret is related to a...more

What To Do When You Hire A Thief

by Foley & Lardner LLP on

Employers victimized by trade secret misappropriation appropriately express righteous outrage, both at the offending ex-employee and sometimes at the new employer. However, on another day the roles can reverse: That same...more

SOUR GRAPES: Fig Spread Verdict Under DTSA Doesn’t Stick, Argue Jam Company Defendants

In a dispute over ripped off recipes, counsel for victorious plaintiff Dalmatia Import Group hailed the jury verdict as the first of its kind under the Defend Trade Secrets Act, as we previously reported. Not so fast, sulked...more

US Supreme Court Intimates That the SEC’s Use of Disgorgement May Be Subject to Five-Year Statute of Limitations

On April 18, 2017, the US Supreme Court heard oral arguments in Kokesh v. Securities and Exchange Commission regarding whether disgorgement ordered by the US Securities and Exchange Commission (SEC) is subject to the...more

Top trade secret developments in 2017 for ADG companies

by Hogan Lovells on

Trade secrets form one of the most valuable assets of technology companies. The protection of trade secrets is widely seen as essential to foster innovation and economic growth. This past year, both the United States (U.S.)...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

Formalize your arrangements, don't rely on a love affair

by Hogan Lovells on

The question of how willing the court is to impose fiduciary duties on a person informally involved in a company has, to an extent, been answered by the case of Karla Otto Ltd v Bulent Eren Bayram (24 February 2017). Such...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

ITC Sanctions for “Staggering” Destruction of Evidence Upheld

by McDermott Will & Emery on

Addressing the imposition of sanctions for spoliation in a US International Trade Commission (ITC) case, the US Court of Appeals for the Federal Circuit upheld the ITC’s imposition of default judgment sanctions and an...more

This Week In Securities Litigation

by Dorsey & Whitney LLP on

The nomination of Jay Clayton as the next SEC Chairman moved forward in the Senate this week. The Senate Banking Committee approved Mr. Clayton by a vote of 15 to 8 with three Democrats joining the Republicans in the...more

Singularis: a warning to all institutions handling client monies

by DLA Piper on

The recent case of Singularis Holdings Ltd v Daiwa Capital Markets Europe Ltd [2017] EWHC 257 (Ch) (Singularis) is an important decision affecting any institution that handles client payments, including banks. It decided that...more

Organik Kimya v. ITC: Federal Circuit Affirms Dispositive Sanctions For Bad Faith Spoliation of Evidence

On February 15, 2017, the Federal Circuit affirmed the Commission’s imposition of severe, case dispositive sanctions on Respondents for bad faith spoliation of evidence as well as the issuance of a 25-year limited exclusion...more

Uber Hits a Bump in the Road with Its Self-Driving Technology with Alleged Trade Secret and Patent Violations

by Dorsey & Whitney LLP on

In February, Waymo LLC, formerly Google’s self-driving car development company, sued Uber Technologies, Inc. and others in federal court in San Francisco for, among other things, violations of the Defend Trade Secrets Act of...more

A Key Difference Between the DTSA and UTSA: “Continued Misappropriation” Continues to be a Viable Claim

by Fisher Phillips on

The Defend Trade Secrets Act (“DTSA”), unapologetically, was modeled after the Uniform Trade Secrets Act (“UTSA”) in many respects. For background, the DTSA is the federal statute, enacted in 2016, that creates a federal...more

Pennsylvania Jury Returns First Verdict Under Defend Trade Secrets Act

A Pennsylvania jury recently returned a verdict under the federal Defend Trade Secrets Act of 2016 (DTSA)—the first verdict of its kind in the country. In Dalmatia Import Group, Inc. et al. v. FoodMatch, Inc. et al.,...more

This Week In Securities Litigation

by Dorsey & Whitney LLP on

U.S. Senators Elizabeth Warren, Sherrod Brown, Robert Menendez and Brian Schatz requested that Inspector General Carl Hoecker investe Acting SEC Chairman Michael Piwowar in a letter dated March 29, 2017. The letter notes that...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

U.S. Steel ITC Case Alleging Chinese Government Hacked Its Network and Stole Its Secret Formulas May Be Revived

First, a little background for those unfamiliar with the wonderful world of the International Trade Commission (ITC). Section 337 of the Tariff Act of 1930 (19 U.S.C. § 1337) prohibits “unfair methods of competition and...more

DTSA’s First Verdict “Fig”-ure: Jam’n to the Tune of $500,000

In little under a year after its enactment, a Federal Court jury in the Eastern District of Pennsylvania issued the first verdict under the Defend Trade Secrets Act in favor of the Plaintiff Dalmatia Import Group, Inc. The...more

State Law Cannot Blur the Line Between Patents and Copyrights

by McDermott Will & Emery on

The US Court of Appeals for the Fifth Circuit determined that a plaintiff could not use a state law claim for unfair competition to protect a valve design, because federal copyright law preempts such a claim. Ultraflo Corp....more

Brewery and Beer Distributor Sued over Promotional Contest

by Klein Moynihan Turco LLP on

A North Carolina woman has commenced legal action against Anheuser-Busch, LLC (“Anheuser-Busch”) and its North Carolina distributor, R.A. Jeffreys Distributing Company (“R.A. Jeffreys”), in connection with Anheuser-Busch’s...more

Texas Court Holds Mere Possession and Opportunity to Use Trade Secrets is Sufficient for Misappropriation

by Seyfarth Shaw LLP on

The San Antonio Court of Appeals recently held that an applicant for a temporary injunction in a trade-secret-misappropriation case under the Texas Uniform Trade Secrets Act is not required to show the defendant is actually...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

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Cybersecurity

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