Misappropriation Confidential Information

News & Analysis as of

Defend Trade Secrets Act of 2016 Heading to White House: What You Should Know Now

Congress has finally passed the anticipated Defend Trade Secrets Act of 2016 (DTSA). The bill, which is now on its way to the White House and is expected to be signed by President Obama, will be effective immediately once it...more

Defend Trade Secrets Act Passes Congress

With President Obama’s signature expected, DTSA will allow for new federal civil suits, ex parte seizures, and whistleblower protections. After unanimously passing the Senate earlier this month, the Defend Trade Secrets...more

Restrictive Covenants: Do Yours Meet a Changing Landscape?

Restrictive covenants are an important tool for businesses concerned about the protection of their confidential business information and the costs of employee training and turnover. When properly crafted and utilized,...more

Medical Software Company Wins $940 Million in Trade Secret Case

A jury recently awarded Epic Systems Corporation (“Epic”), a medical software company, $940 million in damages in a case against Tata Consultancy Services Limited (“Tata”) involving theft of Epic’s trade secrets and...more

5 Things to Know About the Defend Trade Secrets Act

Unanimous Senate approval of the federal trade secrets bill creates momentum for a new cause of action. After nearly a year-long delay, the Senate on April 4, 2016, unanimously passed the Defend Trade Secrets Act (DTSA),...more

Breaking News: European Parliament Approves Trade Secrets Directive

On April 14, 2016 (by a vote of 503 to 131 with 18 abstentions), the European Parliament approved the text of a proposed Directive for the protection of trade secrets in the European Union. Once approved by the European...more

Valuable Information Security Lessons from the Olympus Mortgage vs. Guaranteed Rate Case

Late last month a jury awarded Mount Olympus Mortgage Company (MOMC) more than $25 million for their claims against Guaranteed Rate (Guaranteed), which alleged Guaranteed along with other former employees of MOMC illegally...more

Texas Court Holds That Law Firm is Immune From Liability to Claims by Non-Client

Highland Capital Management, LP v. Looper Reed & McGraw, P.C., 2016 WL 164528 (Tex. App. Jan. 14, 2016) Brief Summary - The Texas Court of Appeals held that the doctrine of attorney immunity barred an employer's...more

Haven’t You Heard? Trade Secret Theft Can Occur in Unusual Ways

A recent development from the 3D printing world reminds us that threats of trade secret misappropriation are more varied than cyber-espionage or the disgruntled employee taking confidential information to a competitor. With...more

Federal Court Rejects Employer’s Trade Secret and Computer Fraud and Abuse Act Claims

An ex-employee’s former employer sued him for alleged violations of the Kansas Uniform Trade Secrets Act (KUTSA) and the federal Computer Fraud and Abuse Act (CFAA). The first claim was based on the company’s hunch that he...more

A Truly ‘Uniform’ Trade Secrets Statute May Not be a Pipedream for Long

A vital part of building and maintaining a business’ competitive advantage is the protection of its trade secrets – information that has “independent economic value” by being generally unknown and that the company takes...more

Five Easy Tips for Improving Your Company’s Non-Compete and Confidentiality Agreements and Related Practices Now

As January quickly passed by and new projects increase by the day, there is still a golden opportunity to capitalize on some low-hanging fruit to immediately improve your company’s practices and add immediate value to your...more

The Duty of Loyalty Awakens

If you’re a Star Wars fan, loyalty probably means waiting ten years for “The Force Awakens.” (Or even longer if you prefer not to count Episodes I-III). For an employee looking to leave her current employer, however, loyalty...more

Sixth Circuit Differentiates Trade Secrets and Confidential Information Under Texas Law

Last week, in a diversity jurisdiction case, the Sixth Circuit analyzed Texas law to identify the relationship among three separate categories of business information: (1) trade secrets, (2) contractually protected...more

At Risk: Law Firms Bringing Bad Faith Trade Secrets Claims

Companies get anxious when key employees leave to start new ventures. A company may try to shield itself from the risk of losing confidential information by seeking an injunction preventing its former employees and their new...more

Trade Secrets Unwrapped: Packaging Materials Case Demonstrates The Importance Of Keeping Confidential Information Sealed Shut

There are many ways to gain trade secret protection, but also many ways to lose it. As the recent motion to dismiss ruling in Fleetwood Packaging v. Hein from the Northern District of Illinois illustrates, how a company...more

Employees and “Authorized Access”: A Threat from Within?

Workplace privacy has become an increasingly challenging issue for employees and employers alike. With technological advancements, employers have enhanced visibility into employee behavior including their use of company...more

The Katten Kattwalk - Issue 08

The Katten Kattwalk discusses legal issues in the fashion industry affecting the trademarks, patents and copyrights associated with companies, brands and products. Letter From the Editor - Fashion Week has come and...more

Protecting Company Relationships and Information Upon an Employee Departure

Learn how your company can prepare to act quickly and strategically to protect important relationships, information and trade secrets at the time that a key employee leaves. This webinar will review the latest developments in...more

Utah Supreme Court Lays Out Pro-Plaintiff Presumption of Harm Standard in Trade Secret Cases

The Utah Supreme Court recently issued a significant decision laying out a presumption of harm evidentiary standard in trade secret cases, which will be very useful for plaintiffs seeking injunctive relief in cases involving...more

Think Before You Tack CFAA Claims on to Your Trade Secret Misappropriation Case

Before you include a Computer Fraud and Abuse Act (“CFAA”) claim in a trade secret case, consider carefully: was the data acquired through “unauthorized access” or was it just misused by the defendants? If it was properly...more

Post-Newman Reality: Investigations Involving Unwitting “Tips” to Close Friends and Relatives Will Continue

Earlier this week, the United States Supreme Court declined to hear the federal government’s appeal of the ruling by the Court of Appeals for the Second Circuit in U.S. v. Newman. This leaves intact the Second Circuit’s quid...more

Reducing Your Company’s Exposure to Trade Secret Litigation when Key Employees Come and Go

THE NIGHTMARE SCENARIO - Within the span of two weeks, Mr. Smith and Mr. Wilson, two top managers from your $2 billion corporation, resign. Both managers had complete, unfettered access to your corporation’s trade...more

Financial Projections, Strategic Plans, And Customer Contract Proposals Can Be Trade Secrets

Two competitors who do research and analysis for advertisers and media companies, concerning how television viewing impacts consumer purchasing, have been in a legal battle over alleged trade secret misappropriation, patent...more

Frequently Asked Questions Regarding Trade Secret Disputes and Employment Risks

In today’s post, we have answered some of the most frequent and significant questions that we are asked about trade secret disputes and employment risks. 1. Could you provide a brief snapshot of current trends in...more

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