In Seyfarth’s fourth webinar in its series of 2017 Trade Secrets Webinars, Seyfarth attorneys Robert Milligan and Joshua Salinas were joined by Jim Vaughn, one of California’s leading computer forensics experts, presented Trade Secret Protection: What Every Employer Needs to Know. The panel focused on how to help employers navigate the tricky trade secrets waters and provided best practices for trade secret protection.

As a conclusion to this well-received webinar, we compiled a summary of takeaways: Continue Reading Webinar Recap! Trade Secret Protection: What Every Employer Needs to Know

50 State Desktop Reference: What Businesses Need to Know About Non-Compete and Trade Secret Law

It has been an extraordinary year regarding trade secret and non-compete issues. We saw more and more cases filed in federal court asserting claims under the Defend Trade Secrets Act (“DTSA”) and for alleged violations of non-competes. Some states passed legislation further narrowing the use of non-compete agreements, and some media outlets, academics, and regulators have continued their criticism of such agreements. We expect over the next year, the law to continue to develop regarding the DTSA’s application, definitions, scope, limitations, benefits and interpretation with regard to the immunity provisions. Our 50 State Desktop Reference is a useful guide to know how the law is currently applied in each state.

Seyfarth’s Trade Secrets, Computer Fraud and Non-Competes Practice Group is pleased to provide the 2017-2018 Edition of our one-stop 50 State Desktop Reference, which surveys the most-asked questions related to the use of covenants and intellectual capital protection in all 50 states. For the company executive, in-house counsel, or HR professional, we hope this guide will provide a starting point to answer your questions about protecting your company’s most valuable and confidential assets.

How To Get Your Desktop Reference

To download the pdf of 2017-2018 Edition of the 50 State Desktop Reference, click here.

To request a hard copy of the Desktop Reference, click on the button below.

shutterstock_377009158As a special feature of our blog—special guest postings by experts, clients, and other professionals—please enjoy this blog entry from Bobby R. Williams, Jr., a senior consultant at iDiscovery Solutions.

When litigation looms or a data preservation notice is sent out, key individuals or parties might try to delete data to avoid discovery – despite well-publicized horror stories regarding data destruction, phone and email wiping, and the risks of spoliation and sanctions. In many cases, if we find an absence of evidence during an examination, we typically also find evidence of destruction. We refer to these individuals as “Wipers.”

Wipers are the folks who roll the dice and try to game the system. They have enough knowledge to know how to destroy data, feel like they can get away with it, and take a chance. “The document is gone, aha!” might say the Wiper. However, Wipers still run into problems they didn’t anticipate. Even if they manage to delete or destroy the incriminating document or email, they’ve usually taken the time to install and run data destruction software, leaving behind associated artifacts showing the download and usage of such software. Another thing Wipers usually don’t consider: they leave behind other artifacts and data that gives us a clear picture of the document. Data showing when the document was created or modified, the folder it was saved in, even who opened it, when, and how many times. In trying to cover up the original footprints, they invariably left new footprints. And sometimes, even when a Wiper believes they completely deleted the document itself, it sometimes resides in a snapshot or backup they did not see. Continue Reading How To Address Wipers In Trade Secret Cases

Robert B. Milligan, Seyfarth Partner and Co-Chair of the Trade Secrets, Computer Fraud & Non-Competes Practice Group, will be a speaker for the “Injunctive Relief” panel at the Sedona Conference on Developing Best Practices for Trade Secret Issues on December 8 at 8:30 a.m., in Scottsdale, Arizona.

The panel will discuss:

  • The uses of equitable solutions in trade secret disputes
  • How parties and courts can craft case-specific remedies
  • How to ensure that, while offering the virtue of flexibility, equity is not whim

The Sedona Conference is an assembly of thought leaders in the areas of antitrust laws, complex litigation, and intellectual property rights; and it brings together the brightest minds with the goal of creating practical solutions and recommendations on tipping point issues.

For more information about the Sedona Conference, click here.

shutterstock_594829253As a special feature of our blog—special guest postings by experts, clients, and other professionals—please enjoy this blog entry from Supreet Singh, a senior consultant at iDiscovery Solutions, Inc. 

It’s hard to believe the first smartphone was released over 20 years ago. At that time, few thought it would become such an integral part of our lives. Additionally, this year marks the 10th anniversary of the iPhone and its introduction altered the world of digital forensics. Smartphones contain a wealth of personal and sensitive information like passwords, security or access codes, account numbers, electronic communications, and much more. But they are more than mere containers of data. Between the operating system, installed applications, and service providers, there’s a wealth of information that can provide dramatic insight into conversations, activities, habits, preferences, and movements of the phone’s user.

There are essentially three places where smartphone related data can be found: on the phone itself, with mobile app providers (e.g. Facebook, Snapchat, or Yelp), and with the service provider (e.g. AT&T or Verizon). Data from all three sources can be very useful in civil lawsuits, criminal cases, or internal investigations, depending on the needs of the case. Continue Reading The Smartphone: A Treasure Trove of Evidence in Trade Secret Cases

shutterstock_314177504Uber’s ongoing battle with Waymo in the Northern District of California federal court over technology used in self-driving cars provided another significant decision concerning the broad scope of trade secret preemption under California state law.

Waymo accused Levandowski (a former employee) of taking more than 14,000 company files before leaving Waymo and starting his own self-driving truck company (which Uber bought for $680 million). Waymo asserted several claims against Uber for misappropriation of trade secrets under the federal Defend Trade Secrets Act (“DTSA”) and the California Uniform Trade Secrets Act (“CUTSA”). In addition to the trade secret claims, Waymo asserted four claims for patent infringement and one claim for violation of section 17200 of California’s Business and Professions Code. Continue Reading California Federal Court Finds CUTSA Preemption on Unfair Competition Claim in Uber Row

shutterstock_511683898On May 11, 2017, a Northern District of Illinois federal court ruled that a Plaintiff properly alleged misappropriation under both the federal Defend Trade Secrets Act (DTSA) and the Illinois Trade Secrets Act (ITSA) in a case where the employee downloaded files onto a personal thumb drive and then went to a competitor.

Plaintiff  Molon Motor and Coil Corporation (“Molon”) contended that its former Head of Quality Control, Manish Desai, downloaded confidential data onto a portable data drive before leaving Molon for a competitor, Nidec Motor Corporation (“Nidec”). Molon further contended that Desai provided the confidential data to Nidec and Nidec then used (and continues to use) the confidential data to compete with Molon. Nidec filed a Motion to Dismiss Molon’s Complaint against Nidec (Molon did not sue Desai) on the basis that Molon could not state a claim under the DTSA or the ITSA because a) Desai downloaded the trade secrets while still employed by Molon, and b) Molon did not make a plausible allegation that Nidec used the trade secrets. Continue Reading Illinois Federal Court Allows Inevitable Disclosure Theory in Defend Trade Secrets Act Case

webinarTrade secret identification and protection is more critical than ever for employers. Technology is consuming the way we do business, and new laws concerning trade secrets and the content of employment agreements make trade secret identification and protection more critical than ever.
On Tuesday, July 18, 2017, Seyfarth attorneys Robert B. Milligan and D. Joshua Salinas, joined by Jim Vaughn, one of California’s leading computer forensics experts, will present Trade Secret Protection: What Every Employer Needs to Know. This is the fourth installment in our 2017 Trade Secrets Webinar Series.
This webinar is designed to help employers navigate the tricky trade secrets waters and to provide best practices for trade secret protection. The panel will cover a variety of topics, including:

  • How to best identify and protect trade secrets
  • What employers need to know about the DTSA
  • Effective use of restrictive covenants in employment agreements
  • How to catch a trade secret thief
  • Responses to potential trade secret theft
  • Choosing the right court to protect trade secrets
  • Consideration for suing under federal vs. state trade secret laws (or both)

Please join us for this informative webinar:

register

shutterstock_494317324On May 19, 2017, Texas Governor Greg Abbott signed into law several amendments to the Texas Uniform Trade Secrets Act (“TUTSA”), located in Chapter 134A of the Texas Civil Practice & Remedies Code. The amendments go into effect on September 1, 2017.  In doing so, Texas has aligned its statute more closely with federal law and codified recent judicial interpretations of the law.

Two events precipitated the amendments, one legislative, one judicial.  In the first, Congress passed the Defend Trade Secrets Act (“DTSA”) in May 2016, which provides a federal cause of action for trade-secret misappropriation. In the second, the Texas Supreme Court announced in In re M-I L.L.C., 505 S.W.3d 569 (Tex. 2016) that a presumption exists that a party is authorized to participate and assist in the defense of a trade-secret misappropriation claim under TUTSA, which presumption cannot be surmounted unless the trial court considers a seven-factor balancing test.  These events resulted in the following key changes to the TUTSA: Continue Reading Texas Legislature Clarifies and Expands the Texas Uniform Trade Secrets Act

shutterstock_526002034This blog originally appeared in ALM Intellectual Property Strategist.

One year after its enactment, the Defend Trade Secrets Act (DTSA) continues to be one of the most significant and closely followed developments in trade secret law. The statute provides for a federal civil cause of action for trade secret theft, protections for whistleblowers, and new remedies (e.g., ex parte seizure of property), that were not previously available under state trade secret laws. The less than 70 reported DTSA cases to date provide an early glimpse into how courts may interpret the statute going forward and what early concerns about the statute may have been exaggerated.

Overstated Ex Parte Seizure Concerns

The ex parte seizure provision of the DTSA was one of the most controversial provisions of the statute during its drafting. The provision allows a trade secret holder to request, without notice to the alleged wrongdoer, that a district judge order federal law enforcement officials to seize property to prevent the propagation or dissemination of trade secrets. Opponents of the DTSA argued that the ex parte seizure provision would open the door to abuse by purported “trade secret litigation trolls” and increase litigation costs. The cases to date involving the seizure provision suggest that those early concerns may not materialize. Continue Reading Emerging Issues In the Defend Trade Secrets Act’s Second Year