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

Tag Archives: New Jersey

Beware: Over-Inclusive Non-Compete Agreement May Be Unenforceable

Posted in Non-Compete Enforceability, Restrictive Covenants

An employment agreement non-competition provision stated that, for 18 months after termination, the employee shall not become employed by or act “directly or indirectly, as an advisor, consultant, or salesperson for, or become financially interested, directly or indirectly, [in an entity] engaged in the business of selling flavor materials.” Earlier this month, the North Carolina Court of Appeals held that …

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft, Espionage, International, Legislation, Non-Compete Enforceability, Practice & Procedure, Privacy, Restrictive Covenants, Social Media, Trade Secrets, Unfair Competition

By Robert Milligan and Joshua Salinas

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2013. Please join us for our complimentary webinar on March 6, 2014, at 10:00 a.m. P.S.T., where we will discuss them in greater detail. As with all

District Court of New Jersey Continues Growing National Trend Permitting Employers to View “Publicly” Available Social Media Posts

Posted in Practice & Procedure, Privacy, Social Media

Following a growing recent national trend, Judge Martini of the District Court of New Jersey issued summary judgment to Defendants Monmouth-Ocean Hospital Service Corporation (“MONOC”) and two of its senior management employees on August 20, 2013, in a claim brought by a former nurse and EMT, Deborah Ehling, who accused MONOC of retaliation and other claims. 

Ehling’s claims, in part, …

Are Sunny Skies Ahead for Plaintiff After Clearing An Early Hurdle in A Trade Secret Case Involving Weather Service?

Posted in Practice & Procedure, Trade Secrets

A New Jersey district court judge recently declined to dismiss trade secret claims against the Weather Channel, finding that the plaintiff Events Media Network Inc. (“EMNI”) had alleged sufficient facts to state a claim of trade secret misappropriation under the Georgia Trade Secrets Act. 

The parties first entered into a licensing agreement in the spring of 2008.  EMNI agreed that …

Foreign Engineer Arrested For Trade Secret Theft Involving Medical Technology

Posted in Data Theft, Espionage, Trade Secrets

The U.S. Attorney’s Office in New Jersey recently charged a former employee with stealing trade secrets from a New Jersey medical technology company. 

The former employee, an Indian national, worked in a group at his former employer responsible for the manufacture of pen injectors and pre-fillable syringes.  He resigned from the company last month, and in the weeks leading up

New Jersey Assembly Passes Revised Employee Social Media Privacy Bill

Posted in Legislation, Privacy, Social Media

By Carlos Lopez, Caroline Keller and Chris Lowe

The New Jersey General Assembly voted today on a new version of an employee social media privacy bill which incorporates revisions suggested by Governor Chris Christie when he conditionally vetoed the bill on May 6, 2013. The Assembly passed the revised version with an overwhelming vote of 74-0. The bill is …

New Jersey Appellate Court Affirms No Damages Award Against Individual Defendants In Non-Compete Case

Posted in Non-Compete Enforceability, Practice & Procedure

A New Jersey jury decided that two individual defendants violated their non-competition contractual commitments but that they owed no damages.  The trial court then denied the former employer’s motion to enjoin the individuals from continuing to compete.  A few days ago, the State’s Appellate Court held that there was a plausible explanation for these several results and affirmed.  Miles Technology,

New Jersey Legislators Propose Banning Non-Compete Agreements With Employees Who Can Claim Unemployment

Posted in Legislation, Non-Compete Enforceability, Restrictive Covenants

By Jessica Mendelson and Robert Milligan

New Jersey state legislators recently proposed A3970, a bill designed to prevent New Jersey businesses from enforcing “non-compete agreements with staffers who can claim unemployment compensation.”

The bill, which is sponsored by Assembly members Joseph Egan and Peter Barnes, was recently referred to the state’s Assembly Labor Committee. If the bill passes, it …

New Jersey Poised To Adopt New Social Media Legislation

Posted in Legislation, Social Media

With the passage of A2878 in the New Jersey General Assembly in March, New Jersey is poised to become the eighth state to “pass legislation preventing employers from asking prospective and current employers for passwords to their accounts on social media sites.” The proposed law, which is now being considered by Governor Chris Christie, would become the most restrictive social …

Aleynikov Case Continues to Grab Headlines in Trade Secrets Community

Posted in Data Theft, Espionage, Trade Secrets

Last year, Sergey Aleynikov, a computer programmer, beat federal charges of trade secret theft under the Economic Espionage Act. Although Aleynikov was initially convicted, the Second Circuit Court of Appeals overturned his conviction, finding that the trade secrets relating to the source code Aleynikov had taken were not related to a product “produced for. . . interstate or foreign …

Trade Secrets and Non-Compete Legislative Update Webinar On September 20, 2012

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

Please join us for our sixth trade secrets webinar of the year entitled Trade Secrets and Non-Compete Legislative Update.

The webinar will be September 20, 2012 from noon to 1:00 p.m. central.

The past year has seen significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and pending legislation proposed in additional jurisdictions. As trade secrets …

At Long Last, New Jersey Passes Trade Secrets Act

Posted in Trade Secrets

Legislation intended to help protect the trade secrets of New Jersey businesses has been signed into law by Gov. Christie. The New Jersey Trade Secrets Act (S-2456/A-921) establishes by law specific remedies available to businesses in the event that a trade secret – such as a formula, design, a prototype or invention – is misappropriated. New Jersey was one of …

At Long Last, New Jersey Is Poised To Pass The “New Jersey Trade Secrets Act”

Posted in Trade Secrets

By David Monachino

New Jersey is one of the four remaining states that have not adopted some or all of the provisions of the Uniform Trade Secrets Act (Massachusetts, New York and Texas are the others), but instead NJ courts have relied wide range of common law decisions in order to establish a trade secret misappropriation claim. On September 26, …

Failure to Specifically Identify Trade Secrets in a Complaint Does Not Bar a Complaint in New Jersey Federal Court

Posted in Practice & Procedure

A growing number of courts across the country have required  plaintiffs to specify with particularity the trade secret that they are accusing a defendant of stealing, and that plaintiffs’ refusal to do so could result in dismissal of the claim.  See, e.g., Dura Global, Tech, Inc. v. Magna Donnelly Corp., 2008 WL 2064516 (E.D.Mich. May 14, 2008) (staying discovery until the plaintiffs …

“Circumstantial” Proof of Solicitation Found Insufficient by District of New Jersey

Posted in Restrictive Covenants

ING Life Ins. and Annuity Co. v. Gitterman, Slip Copy, 2010 WL 3283526 (DNJ August 18, 2010)

Plaintiffs ING Life Insurance and Annuity Company (“ILIAC”) and ING Financial Advisors (“IFA”) (collectively, “Plaintiffs” or “ING”), sought to enjoin defendants, all of whom were former employees of ING, from soliciting clients to withdraw certain accounts from ING, pending the resolution of a …