Theft

News & Analysis as of

Three Nike Employees Perpetrate Massive Theft of Trade Secrets then Bolt for Adidas

Nike has sued three former employees who left to work for Adidas. The company is suing for everything imaginable: Breach of contract, theft of trade secrets, fraud, conspiracy and more. In a fifty page Complaint, the athletic...more

"insights" Newsletter - Autumn 2014

In this issue: - Immigration and Customs Enforcement ("ICE") - Antitrust and Compliance Programs - Staffing Companies and their Clients - Employment Law Update - Impact of the Windsor...more

RUSSIAN WEAPONS: New Amendments to Russia’s Trade Secret Law Target Thieving CEOs and Workers

New amendments to Russian law take aim at the theft of trade secrets by employees, with especially tough penalties for thieving CEOs. The amendments to Russia’s Trade Secret Law became effective October 1, 2014. The...more

Banking On Your Executive’s Compliance With the Trade Secrets Law

On behalf of the Commission on the Theft of American Intellectual Property, the National Bureau of Asian Research published its findings in 2013. Members of the Commission included Craig R. Barrett, former Chairman and CEO of...more

Right on Target: Employer not liable for investigating wallet theft

Employee theft is a serious problem. Employers may suffer significant losses. When the victim is a third-party customer, the employer may lose customers, credibility, and goodwill. Either way, employers cannot look the other...more

Hallmark Cards Awarded $47 Million for Misappropriation of Four-Year-Old Market Research

The number of data theft/trade secret cases that go to trial is growing, as are the size of the verdicts. For example, the Eighth Circuit Court of Appeals recently upheld a $47 million total recovery for Hallmark Cards for...more

To Sue for Theft of Your Trade Secrets in California, You May First Have to Give Them Away

California trade secret litigators likely know all about California Code of Civil Procedure Section 2019.210. Those that don’t, should. Section 2019.210 provides that before commencing discovery in a trade secret...more

French Supreme Administrative Court Rules on the Procedure for Returning Artworks Looted by the Nazis

After World War II, works of art suspected of having been stolen by the Nazis were listed on a special registry called the Musées Nationaux Récupération (MNR registry), and stored in French museums until they could be...more

ITC Section 337 Update

ITC Judge Gildea Finds NPE Established Domestic Industry - In 884 Investigation – On August 29, 2014, ITC Judge James Gildea issued a Notice of Initial Determination (“ID”) finding a violation by reason of infringement...more

Has the Presence of Smartphone Recycling Kiosks in Major U.S. Cities Affected the Incidence of Robbery and Larceny?

In recent years, many areas of the United States have experienced a surge in crimes involving the theft of mobile devices. According to Consumer Reports, an estimated 3.1 million mobile devices were stolen in the United...more

Occupational Fraud Costs Global Businesses an Estimated $3.7 Trillion

Organizations lose approximately five percent of their revenue each year to internal theft and fraud, according to the Association of Certified Fraud Examiners' (ACFE) recent Report to the Nations on Occupational Fraud and...more

Russian Crime Ring Possesses Mass Quantities of Stolen Online Information

With recent reports that a Russian crime ring may have stolen the largest collection of online data — including 1.2 billion username and password combinations—effective data security is more critical than ever for all...more

Ex-Citadel Employee Pleads Guilty To Wire Fraud And Theft Of Trade Secrets; Accomplice Left To Fight Trial Alone

Yihao “Ben” Pu is probably coming to grips with the phrases “crime doesn’t pay…” and “don’t do the crime unless you’re willing to do the time….” In federal court in Chicago, on Thursday, August 7, 2014, Pu, a former...more

Hallmark Recovers $47 Million for Theft of Greeting Card Market Research, Eighth Circuit Says Ok

A fascinating, salacious trade secrets case out of the Western District of Missouri and the Eighth Circuit Court of Appeals...more

Roses Are Red, Violets Are Blue, Giving Someone Trade Secrets Injures the Owner, and Using Them Does Too

How do two companies end up liable for nearly $50 million in damages relating to confidential, trade secret materials? Like many romances gone awry, this tale arose from actions taken under cover of secrecy that did not look...more

No Harm, No Foul – Appellate Court Finds No CMIA Claim Without Actual Injury

California’s Confidentiality of Medical Information Act, Cal. Civ. Code § 56 et seq. (“CMIA”), provides that an individual may recover $1,000 nominal damages (plus actual damages if any) based on the negligent release of...more

Of Documents and Dumpsters: The Sixth Circuit Affirms Convictions for Theft of Hybrid Car Secrets from GM

Last month, the Sixth Circuit affirmed the convictions of co-conspirator couple Yu Qin and Shanshan Du, who were convicted in 2012 of trade secrets theft. A jury in the Eastern District of Michigan had found that Du...more

ANOTHER WIN FOR ALEYNIKOV: Judge Tosses Evidence in Ex-Programmer’s Latest Case

Sergey Aleynikov fought the law, and the law lost—again. Judge Ronald A. Zweibel of the New York Supreme Court has thrown out a raft of evidence originally gathered by the FBI for federal prosecution and later offered...more

Wait, Now I Can’t Fire My Employees For Stealing? California Federal Court Holds Application of Anti-Grazing Policy to Diabetic...

A California Federal court recently permitted a disability discrimination claim to proceed to a jury trial in a lawsuit alleging that Walgreens unlawfully terminated a diabetic employee for violating its “anti-grazing” policy...more

Last Wishes, First Impression: Potential legal issues arise after Munich recluse passes away, bequeathing Nazi-looted art to a...

Cornelius Gurlitt’s notarized will, which did not surface until after his unexpected death this past May, lists the Kunstmuseum Bern in Switzerland as the heir to his vast art collection, which included works by Matisse, Dix,...more

Car Jacking: Former Nissan Employees in Japan Arrested for Suspected Trade Secret Theft

On May 13, 2014, a former employee of Nissan in Japan was arrested by the Economic Affairs Division of the Kanagawa Prefectural Police on suspicion of trade secret theft. The arrest was made under the trade secret provisions...more

IP|Trend: International Remedies for Misappropriation of Trade Secrets [Video]

As businesses become more global, and employees more mobile, companies are increasingly realizing that their trade secrets are more at risk. Traditionally, companies would be faced with having to file state law actions on...more

Getting An $800,000 Assist From The Government: Referring Trade Secret Theft For Criminal Prosecution Pays Off

We rely on the federal government for a lot of things, but helping a corporation recover attorney’s fees is not something that immediately comes to mind. ...more

The CFAA Does Not Apply To Facebook Photo Theft

The Computer Fraud and Abuse Act (CFAA), codified at 18 U.S.C. § 1030 et seq, is a criminal statute that forbids, among other things, "intentionally access[ing] a protected computer, without authorization" when the access...more

Trade Secrets and Economic Espionage

On April 29, 2014, U.S. Senators Orrin Hatch (R-Utah), the former Chairman and a current member of the Senate Judiciary Committee, and Chris Coons (D-Del.), a member of the Senate Judiciary Committee, introduced the Defend...more

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