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
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 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
California recently passed two laws amending its longstanding prohibition of employee noncompete agreements, both of which became effective this month. Section 16600 of the California Business and Professions Code voids...more
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
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
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
Discovery Rule under UTSA New Technology Products v. Scotts Miracle-Gro., 3d Dist. Union No. 2022-Ohio-3780. In this appeal, the Third Appellate District affirmed the trial court’s decision to grant summary judgment to...more
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
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
Trade secret litigation presents a variety of procedural and practical complexities at every stage of the proceeding. One of the most important—yet often overlooked—issues in these cases can be summarized by the following...more
The Eastern District of New York recently highlighted the importance of maintaining the confidentiality of trade secrets where the underlying trade secrets are readily apparent to anyone interacting with the holder’s product....more
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
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
Ninth Circuit Resurrects California’s Anti-Arbitration Statute - Chamber of Commerce of the U.S.A. v. Bonta, 13 F.4th 766 (9th Cir. 2021) - The Ninth Circuit Court of Appeals reversed in part a 2020 preliminary...more
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
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
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
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
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
Trade secrets and other proprietary information can be among a business’ most valuable assets and drive its competitive advantage. It is therefore ordinarily critical that employees be bound by an enforceable agreement that...more
On October 29, 2020, United States District Court Judge Denise J. Casper rejected the argument that the Massachusetts Uniform Trade Secret Act (MUTSA) preempts, and therefore bars, state law claims for misuse of confidential...more
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
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
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