Misappropriation

News & Analysis as of

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

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

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

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

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

Scope of Pennsylvania's Whistleblower Law Examined

As if Counties could forget that Court employees are just a little different, the Commonwealth Court of Pennsylvania sent us another reminder when the Court held that the Pennsylvania Whistleblower Law does not apply to...more

Supreme Court Denies Petition for Writ of Certiorari Over Sino Legend’s Trade Secret Theft Challenge

On January 9, 2017, the Supreme Court denied the petition for writ of certiorari submitted by Sino Legend Chemical Co., Ltd. (Sino) in litigation stemming from SI Group, Inc.’s (SI) Section 337 complaint. In a Section 337...more

Step Aside! Trade Secret Preemption of Other Claims

Order Granting in Part and Denying in Part Motion to Dismiss, Henry Schein, Inc. v. Cook, et al., 16-cv-03166-JST (Judge Jon Tigar) - One purpose of the California Uniform Trade Secrets Act (“CUTSA”) is to preempt and...more

Thinly Pled Allegations of Trade Secret Misappropriation under DTSA Are Vulnerable to Dismissal

A dismissal with prejudice is a plaintiff’s worst fear realized. When it comes to alleging a proper claim for trade secret misappropriation, the Western District of Kentucky recently reminded plaintiffs just how critical it...more

The Value of Forensic Accounting Goes Beyond the Courtroom

Forensic Accountants play an integral role in the changing landscape of today’s business management and oversight. Successful business owners prepare for the possibility of malware attacks, internal fraud, lawsuits,...more

SEC Charges Five Senior Executives With Financial Fraud

Five executives took advantage of their employer’s weak internal controls to repeatedly misappropriate funds, causing a loss of over $11 million over a four year period beginning in 2008. The scheme was discovered when a firm...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

Dickinson Wright Defends Trek, Inc. – An Industrial Equipment Supplier – Against A Motion To Dismiss Or Transfer

John S.Artz (Member, Troy) and Chelsea M. Smialek (Associate, Washington, D.C.), successfully defended against a motion to dismiss or transfer based on the first-to-file doctrine in a dispute between two suppliers of...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

Trade Secret Misappropriation in the World of Driverless Cars: Google versus Uber

On Thursday, Waymo LLC sued Uber Technologies and Ottomotto LLC in federal court in the Northern District of California for: (1) violation of the federal Defend Trade Secrets Act; (2) violation of California’s Uniform Trade...more

Watch the Napkin: First Circuit Affirms Insider-Trading Conviction

In what appears to be the first appellate decision since the Supreme Court’s December 2016 ruling in Salman v. United States, the U.S. Court of Appeals for the First Circuit affirmed an insider-trading conviction based on a...more

The Defend Trade Secrets Act of 2016: A Year Later By The Numbers

It has been almost a year since the Defend Trade Secrets Act of 2016 (DTSA) took effect. Since Forbes Magazine called the DTSA the “Biggest IP Development in Years,” we thought it might be helpful to take a look at how often...more

This Week In Securities Litigation

NERA issued a report this week on Canadian class actions. Although the number of those actions filed last year increased compared to the year before, over the last several years the number of securities class actions filed in...more

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

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