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Trade Secrets › 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

ArentFox Schiff

Federal District Court Declines to Award ‘Bad Faith’ Fees for Party’s Failure to Sufficiently Identify Trade Secrets in Federal...

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Earlier this year, a federal district court judge in the Western District of North Carolina declined to award “bad faith” attorney’s fees under the Defend Trade Secrets Act (DTSA). See Design Gaps, Inc. v. Hall, No....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

Jenner & Block

Client Alert: First Circuit Parses Underlying Complaint to Find Duty to Defend and to Defeat Exclusions

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The duty of a liability insurer to defend a policyholder from litigation is typically described as broad and expansive, extending beyond the insurer’s duty to indemnify. The duty to defend generally obliges an insurer to...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

ArentFox Schiff

Litigating Spoliation Claims in Trade Secret Cases

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In today’s Digital Era, where employee mobility is commonplace, businesses are more exposed than ever to trade secret theft by employees. As businesses move toward the complete digitization of information, lawyers involved in...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

Haug Partners LLP

The United States-China Trade Deal: Key Provisions for Intellectual Property Owners

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On January 15, 2020, the United States and China entered into the Economic and Trade Agreement Between The Government Of The United States Of America And The Government Of The People’s Republic Of China....more

Hogan Lovells

Lightning fast IP reform in China: Trademark Law and Anti-Unfair Competition Law amended

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On 23 April 2019, both China’s Trademark Law (“TML“) and its Anti-Unfair Competition Law (“AUCL“) were amended. The amendments to the TML are aimed at curbing bad faith trademarks and increasing damages for infringement,...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

A Dismissal Without Prejudice May Not Support Fee Award Under the DTSA

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In a case of first impression, Judge Gregg Costa of the Fifth Circuit, affirming a lower court decision, held that a dismissal without prejudice of a Defend Trade Secrets Act (DTSA) case does not support a prevailing-party...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

Jones Day

Massachusetts Act Dramatically Changes the Business Landscape

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Massachusetts just passed an economic development bill that will significantly impact Massachusetts businesses. The three most important changes relate to noncompetes, trade secrets, and patent infringement claims....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

Seyfarth Shaw LLP

Hidden Details: Thoughts on Trade Secrets From the UK

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As reported recently by Seyfarth Shaw’s lawyers in this very blog, on 13 April the European Parliament will vote on the EU Commission’s proposed trade secrets directive. Many English legal practitioners, more or less...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

Adler Pollock & Sheehan P.C.

To Void Or To Modify? Courts Have The Final Say On Voiding Or Rewriting A Non-Compete Agreement

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“This has been a trend for a long time; the days of lifetime employment are long since over.” — Marc Andreeson Anticipating that employees do not always stay with an employer for the duration of their careers,...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

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