News & Analysis as of

Defend Trade Secrets Act (DTSA) Trade Secrets UTSA

Sullivan & Worcester

Companies Turn to Trade Secret, Patent, Copyright to Mitigate Risks from FTC Non-Compete Ban

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On April 23, 2024, the Federal Trade Commission narrowly approved a rule banning most non-competition agreements. The rule, set to go into effect on September 4, 2024, prohibits employers from including non-compete provisions...more

Fox Rothschild LLP

Trade Secret Litigation: What You Need to Know

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In today’s highly competitive business environment, it is crucial for a company to safeguard its intellectual property to maintain a competitive edge and ensure long-term success. But what is the best way to do that? ...more

Baker Donelson

Trade Secret Protection Plans Provide Certainty to Employers

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Baker Donelson recently published an article called "The End of Non-Competition Agreements? Not so Fast!" The article summarizes the Federal Trade Commission's (FTC) final rule prohibiting most employers from binding the...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

Jackson Lewis P.C.

Manufacturers of Custom Products Protecting Trade Secrets Involved in Production Process

Jackson Lewis P.C. on

Manufacturers wanting to protect their trade secrets, especially those related to the production of custom products made for specific customers, should consider some general practices that can increase the likelihood of...more

Sheppard Mullin Richter & Hampton LLP

Reap What You Sow – Sixth Circuit Affirms Recovery of Research and Development Costs to Agricultural Company in Trade Secret Case

The recent decision by the U.S. Court of Appeals, Sixth Circuit, Caudill Seed & Warehouse Co. v. Jarrow Formulas, Inc., illustrates the flexible approach taken by courts when considering the calculation of compensatory...more

Sheppard Mullin Richter & Hampton LLP

The Developing “Avoided Costs” Remedy in Trade Secret Litigation

Should a defendant found liable for stealing trade secrets have to fork over all of the research and development costs it theoretically avoided by misappropriating the secrets? Yes, according to the “avoided costs” theory of...more

Sheppard Mullin Richter & Hampton LLP

Insufficient Evidence: Fifth Circuit Affirms Denial of Preliminary Injunction for Trade Secret Misappropriation

While preliminary injunctions are not uncommon in trade secrets misappropriation cases, a recent Fifth Circuit decision highlighted the importance that the movant put forth colorable evidence of misappropriator “use” of the...more

Sheppard Mullin Richter & Hampton LLP

Federal Circuit Deems Algorithm Potentially Valid Trade Secret Notwithstanding Prior Publication

On January 24, 2022, the Federal Circuit affirmed the grant of a preliminary injunction blocking the publication of a patent application on the basis that it contained the plaintiff, Masimo Corp.’s trade secrets. Masimo Corp....more

Seyfarth Shaw LLP

Texas Oil & Gas Manufacturing Company’s DTSA/TUTSA Lawsuit Unraveled by Public Disclosure of Alleged Trade Secret in its Own...

Seyfarth Shaw LLP on

After a four day bench trial on August 10, 2021, a Houston federal judge ruled that the conceptual designs an oil and gas manufacturing company disclosed to its erstwhile collaborator under an NDA were not eligible for trade...more

Sheppard Mullin Richter & Hampton LLP

A Cautionary Tale on Including an Expiration Date in NDAs

A recent decision by the Ninth Circuit Court of Appeals in BladeRoom Group Limited v. Emerson Electric Co. further stresses the importance of carefully crafting the terms and conditions in a non-disclosure agreement (“NDA”),...more

Sheppard Mullin Richter & Hampton LLP

Trade Secret vs. Patent – a False Dichotomy

Trade secrets and patents offer very different forms of protection, with different pros and cons. A trade secret may last indefinitely, while a patent has a fixed term of 20 years. Independent reinvention is permissible under...more

Sheppard Mullin Richter & Hampton LLP

Reminder to Professional Services Firms – Do Not Take Your Trade Secrets for Granted

For most (if not all) professional services firms, client databases, client contact lists, and information reflecting client preferences are regarded by such firms as trade secrets that are essential to the business. ...more

Fish & Richardson

Recent Developments in Trade Secrets Damages

Fish & Richardson on

With the dramatic increase in trade secret cases since the 2016 passage of the Defend Trade Secrets Act (DTSA), and the large damages awards in many of these cases, it is now more crucial than ever to properly understand how...more

McDermott Will & Emery

How Not to Build a Case of Trade Secret Misappropriation

McDermott Will & Emery on

The US Court of Appeals for the Ninth Circuit affirmed a dismissal of trade secret claims, finding that although misappropriation of a trade secret prior to the enactment of the Defend Trade Secrets Act (DTSA) does not...more

Epstein Becker & Green

Secrecy Is a Necessary, but Not Sufficient, Condition of Alleging Information Is “Trade Secret”: a Court Rules Information Must...

Epstein Becker & Green on

In Payward, Inc. v. Runyon, Case No. 20-cv-02130-MMC, the United States District Court for the Northern District of California granted a Rule 12(b)(6) motion, ruling that information alleged to be “secret” failed to qualify...more

Sheppard Mullin Richter & Hampton LLP

Why Patents Can Matter In Trade Secret Cases

Why should companies considering trade secret litigation consider their patent portfolios? After all, trade secrets, by definition, are secret. They have value in the marketplace by virtue of not being disclosed. And like the...more

Kidon IP

Employees or Independent Contractor Generated IP (Part 2)

Kidon IP on

 In part 1, I reviewed patents and copyrights. In this post, I will discuss trade secrets, IP rights, and other protection measures.  Trade Secrets - No federal or state statute expressly addresses initial ownership of...more

Orrick - Trade Secrets Group

If Trade Secrets Misappropriation Claims Can Be Brought By Non-Owners, What Should Companies Do To Manage Risk?

Last week, we examined the recent Third Circuit decision in Advanced Fluid Systems, which held that a trade secrets plaintiff did not need to be an owner or a licensee of the alleged trade secrets to bring a state law...more

Kidon IP

Identifying Trade Secrets With Reasonable Particularity (Part 1)

Kidon IP on

As we have written previously, during the course of a United States litigation  — whether, under the new, federal Defend Trade Secrets Act (DTSA) or the older state-adopted Uniform Trade Secrets Act (UTSA) — plaintiffs must...more

Seyfarth Shaw LLP

Trade Secret Litigation on the Rise in California: How ADR Can Help

Seyfarth Shaw LLP on

Trade secret litigation in California is growing, in both volume and impact. The second-largest plaintiffs’ verdict in 2019 was $845 million, as reported by the Daily Journal, which was awarded to ASML, a Dutch semiconductor...more

Seyfarth Shaw LLP

Love in the Time of Coronavirus: Protecting Trade Secrets During a Pandemic

Seyfarth Shaw LLP on

Fear of the coronavirus is causing many employers to permit—or in some cases mandate—employees to work remotely. While this measure is designed to minimize the risk of virus transmission, it presents an altogether different...more

Seyfarth Shaw LLP

Can a Party Recover Damages for the Anticipated Future Use of Trade Secrets?

Seyfarth Shaw LLP on

Courts have long lamented that “computing damages in a trade secret case is not cut and dry,” Am. Sales Corp. v. Adventure Travel, Inc., 862 F. Supp. 1476, 1479 (E.D. Va. 1994), meaning that “every [trade secret] case...more

Fenwick & West LLP

A Looming AI War: Transparency v. IP Rights

Fenwick & West LLP on

As artificial intelligence systems become more prevalent in daily life, efforts to create a unifying set of AI principles have intensified. In the past few months, at least three major works have been published on the issue....more

Holland & Knight LLP

Trade Secret Claims Tanked Based Upon Delay

Holland & Knight LLP on

Recently, the Eighth Circuit Court of Appeals considered the three-year statute of limitations provisions of the Defend Trade Secret Act (DTSA) and Iowa Trade Secrets Act (UTSA). In the underlying district court action, CMI...more

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