News & Analysis as of

Misappropriation Appeals

Sheppard Mullin Richter & Hampton LLP

Virginia Court of Appeals Reverses Record $2 Billion Verdict, Emphasizing Damages Resulting from Misappropriation Must Actually Be...

The Virginia Court of Appeals recently issued a consequential trade secrets ruling, reversing a jury’s multi-billion dollar damages award, and finding that the trial court committed several legal errors which improperly led...more

McDermott Will & Emery

Insuring Innovation: Software Code May Be Protected as an Arrangement

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The US Court of Appeals for the Eleventh Circuit once again remanded a trade secret and copyright dispute involving software for generating life insurance quotes, finding that the district court erred by failing to consider...more

McDermott Will & Emery

Don’t Share Trade Secrets With Your Fiancé: A Cautionary Tale

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The US Court of Appeals for the First Circuit largely affirmed a multimillion-dollar award against a temp agency for misappropriation of trade secrets and unjust enrichment due to its employee’s act of obtaining proprietary...more

McDermott Will & Emery

One Bite at the Apple Where State and Federal Jurisdiction Is Concurrent

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The US Court of Appeals for the Second Circuit upheld a federal district court’s dismissal of a case on res judicata grounds after a state court issued a decision on different claims but had concurrent jurisdiction over the...more

McDermott Will & Emery

Missed Appropriation: Massive Trade Secret Verdict Vacated

The Court of Appeals of Virginia vacated a $2 billion award in a trade secret misappropriation case based on a series of evidential errors and improper jury instructions. Pegasystems Inc. v. Appian Corporation, Case No....more

McDermott Will & Emery

E for Effort? PI Analysis in Trade Secret Suit Riddled With Errors

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The US Court of Appeals for the Federal Circuit reversed the granting of a sweeping preliminary injunction (PI) in a trade secret suit against a competitor, finding that the district court’s analysis failed to consider...more

Skadden, Arps, Slate, Meagher & Flom LLP

The Class Action Chronicle - May 2024

In Cheapside Minerals, Ltd. v. Devon Energy Production Co., L.P., 94 F.4th 492 (5th Cir. 2024), the U.S. Court of Appeals for the Fifth Circuit addressed an unresolved question regarding the local controversy exception under...more

McDermott Will & Emery

Back in the USA: Seventh Circuit Lifts Sanctions, Anti-Suit Injunction Contempt

The US Court of Appeals for the Seventh Circuit stayed a district court’s contempt sanctions relating to an anti-suit injunction violation, finding that the adjudicated infringer had done all it could to withdraw from the...more

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

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The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

McDermott Will & Emery

No Fifth Chances: Ignoring Court’s Warning Leads to Terminal Sanctions

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In an appeal from litigation-ending sanctions, the US Court of Appeals for the Fifth Circuit held that misconduct in the face of judicial warnings supports the use of litigation-ending sanctions and that evidence a party...more

McDermott Will & Emery

Unfair Play: Unjust Enrichment for Copying and Using Non-Trade-Secret Spreadsheet

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The US Court of Appeals for the Second Circuit reversed a district court’s dismissal of an unjust enrichment claim, finding that unjust enrichment claims do not necessarily rise or fall with trade secret misappropriation...more

Adams and Reese LLP

Coverage Stripped Bare: The Fifth Circuit Holds True to the Eight Corners Rule

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In a recent ruling, the United States Court of Appeals for the Fifth Circuit determined that an insurer owed no defense and indemnity to three strip clubs that had previously been sued for misappropriating the images of...more

Proskauer - California Employment Law

Trade Secrets Claim Against Company Not Severable From Claim Against Employee, Appeals Court Finds

A California semiconductor manufacturer cannot pursue in court its claims of trade secret misappropriation against a rival company while simultaneously arbitrating the same claims against the allegedly larcenous employee, a...more

McDermott Will & Emery

Head East: Contract Disputes Act Claims Must Be Filed in DC

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The US Court of Appeals for the Ninth Circuit concluded that the Contract Disputes Act (CDA) “impliedly forbids” federal contractors from bringing most trade secret misappropriation claims against federal agencies in district...more

McDermott Will & Emery

In Good Hands: Compilation of Publicly Available Information Can Still Be a Trade Secret

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The US Court of Appeals for the First Circuit affirmed a district court decision, finding that a compilation of customer-related information, even if publicly available, is a protectable trade secret. Allstate Insurance Co....more

McDermott Will & Emery

Noncompulsory Counterclaims Don’t Confer Appellate Jurisdiction

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The US Court of Appeals for the Federal Circuit determined that it does not have appellate jurisdiction to review noncompulsory patent counterclaims in a case otherwise unrelated to the originally asserted patents. Teradata...more

McDermott Will & Emery

If You Can’t Say a Secret under an NDA, Don’t Say It at All

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Considering a trade secret misappropriation claim involving a business pitch that was not subject to a non-disclosure agreement (NDA), the US Court of Appeals for the Sixth Circuit affirmed a district court’s summary judgment...more

McDermott Will & Emery

Mootness Requires Covenant Not to Sue to Be Unconditional and Irrevocable

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Addressing a district court decision finding no trade secret misappropriation, the US Court of Appeals for the Fourth Circuit agreed that the alleged trade secret holder had failed to moot the case because its covenant not to...more

McDermott Will & Emery

No Lost Value Damages Despite Trade Secret Misappropriation

The US Court of Appeals for the Second Circuit vacated a damages award, finding that although there was liability for appropriating trade secrets, the trade secret proprietor was only entitled to compensatory damages under...more

Conyers

Liquidators Beware: an Alternative to Quincecare

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The Quincecare duty has become a popular tool for companies (or their liquidators) to claim against banks for funds misappropriated on wrongful payment instructions. It requires a bank to refrain from executing a payment...more

McDermott Will & Emery

Preliminary Injunction, Meet Irreparable Harm

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The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

Proskauer - Law and the Workplace

Lessons Learned From 2022’s Trade Secret Verdicts

Before closing the book on 2022, we look back at the most significant verdicts issued in trade secret trials this past year. In 2022, several juries awarded extraordinary verdicts to plaintiffs. These verdicts suggest a...more

McDermott Will & Emery

Message Received: US Courts Are Appropriate, More Convenient Venue to Adjudicate US IP Disputes

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Addressing personal jurisdiction and forum non conveniens in a software licensing dispute, the US Court of Appeals for the Fourth Circuit upheld a district court’s exercise of personal jurisdiction over a Dutch entity and the...more

McDermott Will & Emery

A Healthy Dose of Seeds: Unique Combination Trade Secrets Entitled to Protection

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The US Court of Appeals for the Sixth Circuit upheld a jury verdict finding a dietary supplement company liable for misappropriating another company’s research and development (R&D) related to broccoli-seed extract. Caudill...more

McDermott Will & Emery

Play It Again and Again (Sam): Meanwhile No Injunction, No Fees

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In its third opportunity to review the district court’s decision in this trade secret case involving flooring, the US Court of Appeals for the Eleventh Circuit again reversed, this time vacating a permanent injunction and an...more

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