News & Analysis as of September 18, 2024

Defend Trade Secrets Act (DTSA)

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

Top Developments in Trade Secret Law

Baker Donelson on 8/26/2024

In the ever-evolving landscape of intellectual property law, trade secrets have emerged as a crucial area of focus, particularly in light of recent uncertainties as to the enforceability of non-competes. Since August 2023,...more

Texas Federal Court Strikes Down FTC Ban on Non - Competes in Ryan v. FTC

Houston Harbaugh, P.C. on 8/22/2024

The long awaited collision between the Federal Trade Commission (FTC) and the varied political and legal opinions on the legality of Employment Non-Compete Agreements (Non-Competes) is now moving up the ladder of...more

2024 Trade Secret Update: A Look at Recent Trade Secret Developments & Trends

WilmerHale on 7/22/2024

On May 11, 2024, the Defend Trade Secrets Act (DTSA) celebrated its eight-year anniversary. The DTSA’s enactment in 2016 marked a turning point in US trade secret protection. It gave parties seeking redress for...more

Life After The FTC Ban: Alternatives To Non-Competes

Hendershot Cowart P.C. on 6/14/2024

The FTC's proposed ban on non-compete agreements is still making its way through the legal system, but businesses are already looking for alternatives to protect their interests. Keep in mind that it is not necessarily the...more

Don't Fret (Yet): Trade Secrets, NDAs and Non-Solicits After the FTC Non-Compete Rule

Holland & Knight LLP on 4/29/2024

With the issuance of the Federal Trade Commission's (FTC or Commission) much-anticipated final rule on its "non-compete ban" (see Holland & Knight's previous alert, "New FTC Rule Bans Non-Compete Agreements in All Employment...more

Trade Secret Wars Continue With Tech Companies Battling For Talent

Proskauer - Minding Your Business on 2/9/2024

In an era where trade secret misappropriation battles can shape corporate landscapes, the Apple v. Rivos case stands as a stark reminder of the importance of diligent onboarding practices when it comes to trade secrets. In...more

Court Rules that Patient List and Related Medical Practice Information Qualify as Trade Secrets

Proskauer - Minding Your Business on 1/22/2024

The 2016 enactment of the Defend Trade Secrets Act (“DTSA”) has led to an increase in trade secret litigation. The DTSA codified into federal law the right of an owner of a trade secret to sue in federal court when its trade...more

A Cautionary Tale from arrivia Inc. v. Rowley

Holland & Knight LLP on 11/30/2023

Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

Pennsylvania Federal Court Rules It Has Subject Matter Jurisdiction to Decide Trade Secret Claim but Dismisses as Untimely...

Lathrop GPM on 10/9/2023

A federal court in Pennsylvania granted in part and denied in part a former franchisee’s motion to dismiss a franchisor’s allegation that she misappropriated trade secrets and breached the franchise agreement. JTH Tax, LLC v....more

The "Inevitable Disclosure" Doctrine and the DTSA

Holland & Knight LLP on 1/27/2023

The "inevitable disclosure" doctrine permits the plaintiff in a trade secrets case to establish threatened misappropriation by showing that the defendant's new employment will inevitably lead the defendant to rely on the...more

[Podcast] The Emerging New Era for Noncompetes and Trade Secrets: Future Shock: How To Protect Trade Secrets when Noncompetes...

BakerHostetler on 2/17/2022

Future Shock: How to Protect Trade Secrets When Noncompetes Become Truly Disfavored is the sixth and final installment of BakerHostetler's six-part series, "The Emerging New Era for Noncompetes and Trade Secrets.”...more

[Podcast] The Emerging New Era for Noncompetes and Trade Secrets: Global Reach: Extraterritoriality and DTSA Enforcement Beyond...

BakerHostetler on 11/24/2021

“Global Reach: Extraterritoriality and DTSA Enforcement Beyond the U.S.” is episode three of BakerHostetler's six-part series, "The Emerging New Era for Noncompetes and Trade Secrets.”...more

[Podcast] The Emerging New Era for Noncompetes and Trade Secrets: The Defend Trade Secrets Act - Five Years After

BakerHostetler on 10/26/2021

The Defend Trade Secrets Act: Five Years After is episode two of BakerHostetler's six-part series, "The Emerging New Era for Noncompetes and Trade Secrets.”...more

Practice What You Preach: Trade Secret Rules (Of Course) Apply to Lawyers

Sheppard Mullin Richter & Hampton LLP on 5/5/2021

When trade secret lawyers advise executives transitioning to a job with a competitor, they typically tell them to “take nothing with you” on the way out – meaning that no confidential, proprietary or trade secret information...more

California Non-Compete and Trade Secret Catch-Up

Faegre Drinker Biddle & Reath LLP on 11/18/2020

California is notorious in the non-compete world for its prohibition and extreme scrutiny of individual non-compete and other types of restrictive covenant agreements. These types of agreements between two businesses,...more

Want to Protect Your Trade Secrets? Update Your Employment Agreements!

BCLP on 10/11/2019

Since 2016, the Defend Trade Secrets Act (DTSA) has provided employers with a federal cause of action against employees, former employees and other bad actors who misappropriate trade secrets. In addition to injunctive...more

Zillow Sues Rival Compass Alleging IP Theft And Breach Of Contract Over Its Artificial Intelligence, Machine Learning, And Cloud...

Shook, Hardy & Bacon L.L.P. on 5/16/2019

Switching from defense to offense, Zillow Group, Inc., best known for its residential real estate marketplace technology, recently filed a lawsuit in the U.S. District Court for the Western District of Washington alleging a...more

Ruling offers guidance for companies seeking injunctions to protect trade secrets

McAfee & Taft on 2/23/2019

Customers, trade secrets, and proprietary information are the lifeblood of any company. For this reason, companies routinely have employees sign confidentiality agreements and, to the extent they are enforceable,...more

Whether the “Economic Loss Rule” Applies To DTSA Claims

Holland & Knight LLP on 11/12/2018

A trade secret misappropriation claim can arise from the same facts as, and be joined with, a claim for breach of contract by the defendant, such as a breach of a covenant not to compete or breach of a non-disclosure...more

Massachusetts Becomes 49th State to Adopt Uniform Trade Secrets Act

Wilson Sonsini Goodrich & Rosati on 10/2/2018

In tandem with the Massachusetts Noncompetition Act, which reformed Massachusetts law governing non-compete agreements (described here in detail), Massachusetts has adopted its version of the Uniform Trade Secrets Act (the...more

California District Leads Nation in Trade Secret Litigation

Holland & Knight LLP on 8/27/2018

A recent report from Lex Machina, an IP litigation research company, shows that the United States District Court for the Central District of California had more trade secret lawsuits in the last decade than any other district...more

Top Developments And Headlines In Trade Secret, Computer Fraud, And Non-Compete Law In 2017 And What We Expect In 2018

Seyfarth Shaw LLP on 3/6/2018

Continuing our annual tradition, we present the top developments and headlines for 2017 and what we expect in 2018 in trade secret, computer fraud, and non-compete law....more

Defending Trade Secrets In The Gig Economy

Fisher Phillips on 10/25/2017

Waking up to news of another major data breach seems to have become a daily routine. On the front pages and cable news, we hear about hackers, rogue governments, and shadowy figures involved with these data breaches. But too...more

Recent Illinois Developments in Employee Non-Compete and Trade Secret Enforcement Actions: What Every Employer Should Know

Franczek P.C. on 7/31/2017

Over the past several months, state and federal courts in Illinois have issued several important decisions that will impact employers’ efforts to enforce post-employment restrictive covenants and protect their trade secrets....more

The Third Circuit Addresses the Defend Trade Secrets Act and Appears to Have Applied the Inevitable Disclosure Doctrine

Seyfarth Shaw LLP on 7/12/2017

The Defend Trade Secrets Act (DTSA) states very clearly that an injunction issued pursuant thereto may not “prevent a person from entering into an employment relationship,” and that any conditions placed on a former...more

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