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Trading Secrets A Law Blog on Trade Secrets, Non-Competes, and Computer Fraud

Category Archives: Trade Secrets

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Trading Secrets Readers: Cast Your Vote in the ABA’s 100 Best Legal Blogs Competition!

Posted in Trade Secrets

Voting is open for the American Bar Association’s annual 100 Best Legal Blogs competition. You helped us get named to the list in 2013, and we hope you will cast your vote today to help Seyfarth’s Trading Secrets blog get on the ABA’s list for 2015.

Trading Secrets is a resource for employers and legal professionals that provides timely legal … Continue Reading

Trade Secret Protection: What are Reasonable Steps?

Posted in Cybersecurity, Data Theft, Practice & Procedure, Trade Secrets

As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog entry by Pamela Passman, President and CEO for the Center for Responsible Enterprise and Trade (CREATe.org)

-Robert Milligan, Editor of Trading Secrets

By Pamela Passman

Regional and national laws are increasingly focusing on the specific steps that companies … Continue Reading

U.S. Congress To Again Consider Private Right of Action for Trade Secret Misappropriation

Posted in Legislation, Trade Secrets

On July 29, 2015, with bipartisan support, congressional leaders in both the House and Senate, including Senator Orrin Hatch (R-UT) and Representative Doug Collins (R-GA), introduced a bill to create a federal private right of action for the misappropriation of trade secrets.  The proposed legislation, titled the “Defend Trade Secrets Act of 2015” (“DTSA”), follows a failed attempt … Continue Reading

Robert B. Milligan to Speak at 2015 ABA Annual Meeting on Trade Secret and Non-Compete Developments

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

Join Seyfarth Trade Secrets and Non-Compete Co-Chair Robert B. Milligan at the 2015 ABA-IPL Annual Meeting in Chicago on July 30, 2015.  Robert will join expert panelists to discuss significant statutory changes to several jurisdictions’ laws regarding restrictive covenants and pending legislation proposed in additional jurisdictions over the past year, as well as the ongoing effort to federalize trade secret … Continue Reading

Upcoming Webinar: State Specific Non-Compete Oddities Employers Should Be Aware Of

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

On Tuesday, August 18, 2015 at 12:00 p.m. Central, Kate Perrelli, Eddy Salcedo and Dawn Mertineit will present the sixth installment in our 2015 Trade Secrets Webinar Series. They will discuss the significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and pending legislation proposed in additional jurisdictions over the past year.  As trade secrets and … Continue Reading

Sales Of $8,000 Stemming From Trade Secret Misappropriation Results In Liability For $1.3 Million

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

At a time when an ex-employee’s newly created company was subject to an injunction prohibiting misappropriation of his former employer’s supposed trade secret, the new company allegedly used that confidential information on a few occasions in the course of providing services.  The former employer sued.  Although the trial court found no violation of the injunction, that ruling was reversed on … Continue Reading

50 State Non-Compete and Trade Secret Desktop Reference

Posted in Non-Compete Enforceability, Trade Secrets

Seyfarth Offers 2015-2016 Edition of 50 State Desktop Reference: What Employers Need To Know About Non-Compete and Trade Secrets Law

There is no denying that there exists a variety of statutes and case law across the country when it comes to non-competition and non-solicitation agreements, as well as the protection of proprietary information. All too often, what is enforceable in … Continue Reading

State Bar of California Webinar on “Hot Topics in Trade Secret Law”

Posted in Trade Secrets

Webinar: Hot Topics in Trade Secret Law Tuesday, July 14, 2015, 12:00 p.m. – 1:00 p.m. PT

Presented by the Trade Secrets Interest Group of The Intellectual Property Law Section of The State Bar of California

Robert B. Milligan, partner of Seyfarth’s Litigation department and co-chair of the firm’s Trade Secrets, Computer Fraud & Non-Competes practice group, is a panelist … Continue Reading

Hawaii Bans Non-Compete and Non-Solicit Agreements with Technology Workers

Posted in Legislation, Non-Compete Enforceability, Practice & Procedure, Trade Secrets

Hawaii joined the small list of states that prohibit certain non-compete agreements with employees.

On June 26, 2015, Hawaii’s governor David Ige signed Act 158 which voids any “noncompete clause or a nonsolicit clause in any employment contract relating to an employee of a technology business.”

The Act defines “technology business” as one that “derives the majority of its gross … Continue Reading

Webinar Recap! How and Why California is Different When it Comes to Trade Secrets and Non-Competes

Posted in Practice & Procedure, Trade Secrets

We are pleased to announce the webinar “How and Why California is Different When it Comes to Trade Secrets and Non-Competes ” is now available as a podcast and webinar recording.

In Seyfarth’s fifth installment of its 2015 Trade Secrets Webinar series, Seyfarth attorneys focused on recent legal developments in California trade secret and non-compete law and how it … Continue Reading

Corporate Espionage: Not Your Typical Sports-“Gate”

Posted in Computer Fraud and Abuse Act, Cybersecurity, Data Theft, Espionage, Trade Secrets

Generally when one refers to “competitors” in the context of protecting trade secrets, it is in regard to business competitors, not competing sports teams.  And usually when the talking heads on sports radio and television are discussing legal issues, they relate to domestic violence or other crimes, concussions, illicit and performance enhancing drugs, or labor disputes (sometimes even … Continue Reading

How a Trade Secret Could Have Saved a Running Royalty From a Nearly Invincible Law

Posted in Practice & Procedure, Trade Secrets

In Kimble v. Marvel Entertainment, LLC, just handed down June 22, 2015, the Supreme Court reaffirmed the 50 year old holding  of  Brulotte v. Thys Co., 379 U. S. 29 (1964), that patent royalties cannot extend beyond the expiration of the patent. So why is this case being discussed in a blog directed to trade secrets? Because the Court also … Continue Reading

New Jersey Supreme Court Confirms Aspiring Whistleblowers Can’t Help Themselves to Confidential Documents

Posted in Practice & Procedure, Trade Secrets

By Robert T. Szyba and Jade Wallace

In a pivotal decision with broad implications for aspiring New Jersey whistleblowers, yesterday the New Jersey Supreme Court affirmed the Appellate Division’s finding that no qualified privilege exists to protect an employee from criminal prosecution for taking confidential documents from her employer under the guise of gathering evidence for an employment lawsuit.

In … Continue Reading

Unsecured Networks More Susceptible to Data Theft

Posted in Cybersecurity, Data Theft, Trade Secrets

Over the past few years, users have become increasingly aware of the inherent dangers of connecting to unsecured Wi-Fi networks. Unfortunately, existing security vulnerabilities in the underlying network hardware may still open a user’s computer to security issues.

Recently, Wired reported that security firm Cylance discovered a vulnerability in a specific brand of network routers deployed throughout many hotel chains … Continue Reading

CFAA and SCA Do Not Prohibit Creation Of A Fake Facebook Page

Posted in Computer Fraud and Abuse Act, Cybersecurity, Social Media, Trade Secrets

The defendants in a case pending in Chicago federal court were accused of contravening Facebook’s terms of use by accessing its computers in order to create a phony page and then using it to ridicule someone. In Bittman v. Fox, Case No. 14 C 8191 (N.D.Ill., June 1, 2015) (Holderman, J.), the court held that those allegations do not state … Continue Reading

Non-Compete That Grants An Employer The Right To Seek Injunctive Relief No Guarantee That Injunction Will Issue

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

A trial court declined to enter a preliminary injunction in a non-compete covenant case despite a provision in the covenant giving the employer the “right to seek injunctive relief in addition to any other remedy available to it.” The decision was affirmed on appeal.

Summary of the case. A 20% owner of a pest control service company (referred to by … Continue Reading

Webinar Recap! Employee Social Networking: Protecting Your Trade Secrets in Social Media

Posted in Trade Secrets

We are pleased to announce the webinar “Employee Social Networking: Protecting Your Trade Secrets in Social Media” is now available as a podcast and webinar recording.

In Seyfarth’s fourth installment of its 2015 Trade Secrets Webinar series, Seyfarth attorneys addressed the relationship between trade secrets, social media, and privacy.

As a conclusion to this well-received webinar, we compiled a … Continue Reading

The Sounds of Silence: Non-Compete Reform Efforts Largely Absent in Massachusetts Legislature

Posted in Legislation, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

Last summer was a busy time for legislators in Massachusetts mulling over non-compete reform. As we reported here and here, several competing bills were in play as the legislative session drew to a close, including a compromise bill that was passed in the state Senate but ultimately failed to advance in the House. You may even recall that then-Governor … Continue Reading

Legal 500 Names Seyfarth Shaw as a Finalist for Top Trade Secrets Litigation Department in the U.S.

Posted in Computer Fraud, Non-Compete Enforceability, Restrictive Covenants, Trade Secrets

The 2015 edition of The Legal 500 United States recommends Seyfarth Shaw’s Trade Secrets group as one of the best in the country.

Nationally, our Trade Secrets practice retained its position in Tier 2. For the second year in a row, our practice has been named to the shortlist for best trade secrets practice in the U.S., and we are … Continue Reading

Upcoming Webinar: How and Why California is Different When it Comes to Trade Secrets and Non-Competes

Posted in Trade Secrets

On Tuesday, June 23, 2015 at 12:00 p.m. Central, Robert Milligan, James McNairy and Joshua Salinas will present the fifth installment in our 2015 Trade Secrets Webinar Series. They will focus on recent legal developments in California trade secret and non-compete law and how it is similar to and diverse from other jurisdictions, including: a discussion of the California Uniform … Continue Reading

Court Affirms California Attorney General’s Demand for Confidential Donor List

Posted in Restrictive Covenants, Trade Secrets

By: Ofer Lion, Douglas M. Mancino, and Christian Canas

Unwelcome news for charities concerned with donor confidentiality

A recent court ruling1 upheld the position of the California Attorney General (AG) requiring that charities located or operating in California provide a copy of their unredacted Form 990 Schedule B, including the names, addresses and contribution amounts for all donors … Continue Reading

Connecticut Governor Signs New Social Media Privacy Legislation

Posted in Legislation, Privacy, Social Media, Trade Secrets

As we have frequently reported in this blog, social media privacy issues increasingly permeate the workplace.  For example, earlier this year, Montana and Virginia joined a growing number of states in enacting laws restricting employer access to the social media accounts of applicants and employees.  With Governor Dannell Malloy’s approval of similar legislation in Connecticut on May 21, the Constitution … Continue Reading

Aspects of Private Social Media Groups May Be Protectable Under Illinois Trade Secret Law

Posted in Social Media, Trade Secrets

In Illinois federal court, a plaintiff alleged aspects of their LinkedIn group were trade secrets misappropriated by the defendant. The defendant moved to dismiss for failure to state a claim. The court denied the motion in part and granted in part, ruling that portions of social media groups may be protectable under the state’s trade secret law. CDM Media USA, Continue Reading

Court, Applying Pennsylvania And California Law, Declines To Enjoin Alleged Violation Of Worldwide Non-Compete

Posted in Non-Compete Enforceability, Practice & Procedure, Trade Secrets

A non-competition covenant prohibited employees of Adhesives Research (AR), a company based in Pennsylvania, from performing services for a competitor of AR anywhere in the world for two years after termination. Newsom, AR’s western U.S. manager of medical products, worked out of her home in California. When she quit and joined another adhesives manufacturer, AR sued and moved for entry … Continue Reading