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Trade Secrets › Misappropriation › Bad Faith

A Trade Secret is any information, not generally known or easily ascertainable, by which an enterprise develops an economic advantage over competitors or customers. In order to maintain trade secrets'... more +
A Trade Secret is any information, not generally known or easily ascertainable, by which an enterprise develops an economic advantage over competitors or customers. In order to maintain trade secrets' protected legal status, enterprises must make reasonable efforts to keep the information secret and prevent unnecessary disclosure.  Trade Secrets may include processes, formulas, methods, designs, patterns, et cetera.   less -
Seyfarth Shaw LLP

Third Circuit Holds that Judge, Not Jury, May Determine “Bad Faith” for Purposes of Fee Shifting Under DTSA and PUTSA

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Both the federal Defend Trade Secrets Act of 2016 (“DTSA”) and Pennsylvania Uniform Trade Secrets Act (“PUTSA”) provide that a defendant may recover its attorneys’ fees if it demonstrates that a claim for misappropriation of...more

Seyfarth Shaw LLP

Not All Documents Labeled Confidential Actually Are: Texas Jury Finds $23M Trade Secret Case Was Brought in Bad Faith

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On May 31, 2023, a Harris County Texas District Court jury found a telecom company acted in bad faith by filing a $23 million trade secret misappropriation lawsuit against a rival where the underlying technology was found to...more

Holland & Knight LLP

Court Denies Request for Attorneys' Fees Against Counterclaimant with Ill-Defined Trade Secret

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In a late-March 2023 decision out of the U.S. District Court for the Southern District of California, a court denied a plaintiff's request for attorneys' fees against a defendant who filed "objectively specious" counterclaims...more

Sheppard Mullin Richter & Hampton LLP

A High Mountain to Climb: Filing DTSA Claims Without any Evidence is Not Enough to Meet “Bad Faith” Standard for Awarding...

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Litigators know it is generally not easy to recover attorneys’ fees in defense of a trade secret misappropriation action. The Federal Defend Trade Secrets Act (“DTSA”) permits a court to “award reasonable attorneys’  fees” to...more

Sheppard Mullin Richter & Hampton LLP

Illinois Appellate Court Upholds Sanctions Against Radio Advertiser For Bad Faith Trade Secrets Claims

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The recent case of Multimedia Sales & Marketing, Inc. v. Marzullo, et al., — N.E.3d —-, 2020 IL App (1st) 191790 (1st Dist. Dec. 21, 2020), demonstrates the peril that attorney fees sanctions present for litigants who bring...more

McDermott Will & Emery

Improper Use of Voluntarily Communicated Trade Secrets Sufficient to Maintain Action for Misappropriation in Texas

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The US Court of Appeals for the Fifth Circuit held that, under Texas law, a plaintiff can sustain an action for trade secret misappropriation even if the plaintiff voluntarily communicated the alleged trade secrets to the...more

Holland & Knight LLP

SDNY Court: Claim Must Be "Wholly Without Merit" to be Entitled to Attorney Fees Under DTSA

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Magistrate Judge James L. Cott of the U.S. District Court for the Southern District of New York recently recommended denial of a motion for attorneys' fees to a prevailing party under the Defend Trade Secrets Act (DTSA). The...more

Fenwick & West LLP

Beating a DTSA Claim Does Not Necessarily Mean Recovery of Attorneys’ Fees

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Absent an agreement to the contrary, the dismissal of a statutory cause of action providing for attorneys’ fees to the prevailing party would seem to entitle a defendant to its reasonable fees and costs. In a matter of first...more

Dorsey & Whitney LLP

Fifth Circuit Denies Defendants’ “Halftime” Attempt to Shift Fees Under the DTSA

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Earlier this month, the Fifth Circuit ruled that under the Defend Trade Secrets Act (18 U.S.C. § 1836, et seq.) (“DTSA”), a defendant is not the “prevailing party” by virtue of a plaintiff voluntarily dismissing a DTSA claim,...more

Holland & Knight LLP

Trade Secret Defendant Awarded Fees for “Objectively Specious” DTSA Claims

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Judge William Alslup of the Northern District of California recently awarded fees to CloudFlare, Inc. (CloudFlare), a defendant in a trade secret misappropriation case under, in part, the relatively new Defend Trade Secrets...more

Morrison & Foerster LLP - MoFo@ITC

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

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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

Epstein Becker & Green

Restrictive Covenants: Do Yours Meet a Changing Landscape?

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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

Orrick - Trade Secrets Group

At Risk: Law Firms Bringing Bad Faith Trade Secrets Claims

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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

Proskauer - California Employment Law

California Employment Law Notes - July 2015

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Employee's Inability To Work For A Particular Supervisor Does Not Constitute A "Disability" - Higgins-Williams v. Sutter Med. Found., 237 Cal. App. 4th 78 (2015) - Michaelin Higgins-Williams worked as a clinical...more

Fenwick & West LLP

Intellectual Property Bulletin - Spring 2015

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California’s Eraser Law: What IP Attorneys and Owners Need to Know - Hector recently graduated from UC Berkeley and is anxious about his upcoming job interview. He is about to enter the adult world. But he has also got...more

Holland & Knight LLP

Trade Secrets Misappropriation Suit Over Solicitation of Employees - Cypress Semiconductor Corporation v. Maxim Integrated...

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In Cypress Semiconductor Corporation v. Maxim Integrated Products, Inc., the California Court of Appeal affirmed a trial court’s award of $180,817.50 in attorneys’ fees plus costs to Maxim Integrated Products, Inc. as the...more

Littler

California Court of Appeals Awards Attorneys' Fees to Defendant For Misappropriation of Trade Secrets Claim Brought in Bad Faith

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A California appellate court recently affirmed the trial court’s ruling in Cypress Semiconductor Corporation v. Maxim Integrated Products, Inc. that the defendant (“Maxim”) was entitled to attorney’s fees under California...more

Butler Snow LLP

Fee Shifting in Trade Secrets Cases

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A number of states, including Tennessee, have adopted the Uniform Trade Secrets Act (“UTSA”). A court may award attorney’s fees, if: - A claim of misappropriation is made in bad faith; - A motion to terminate an...more

Wilson Sonsini Goodrich & Rosati

Another California Court Awards Attorneys' Fees in Bad-Faith Trade Secret and Patent Inventorship Lawsuit

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Earlier this month, the U.S. District Court for the Southern District of California awarded more than $11 million in attorneys' fees and costs to three trade secret defendants, finding that plaintiffs who had raised a claim...more

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