Touzot was an employee of ROM, a seller of products used in making balsa wood model planes and boats. His employment agreement included a post-termination customer non-solicitation covenant. After he left ROM, he became a competitor. The company sued him and his Ecuadorian supplier of balsa wood, which previously had been ROM’s supplier, alleging that they were colluding to steal … Continue Reading
In a recent ruling, the New Jersey Supreme Court gave employers a great recourse for dealing with former employees who breach their duty of loyalty. In Bruce Kaye v. Alan P. Rosefielde, the Court allowed an employer to recover compensation paid to a disloyal, recently terminated, employee, even where the employer sustained no … Continue Reading
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 … Continue Reading
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 … Continue Reading
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, … Continue Reading
On August 29, 2013, New Jersey Governor Chris Christie signed into law Assembly bill no. 2878 (fourth reprint), which prohibits employers from asking or insisting that their employees provide access to their personal social networking accounts. New Jersey is the thirteenth state to enact some form of employee social media networking legislation.
Once the law goes into effect, New Jersey … Continue Reading
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 … Continue Reading
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 … Continue Reading
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 … Continue Reading
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, … Continue Reading
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.”
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 … Continue Reading
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 … Continue Reading
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 … Continue Reading
With Governor Chris Christie’s signature on January 9, 2012, New Jersey became the 47th state to adopt a form of the Uniform Trade Secrets Act (UTSA). Previously governed by common law, trade secrets of persons or entities in New Jersey will now have statutory protection under the New Jersey Trade Secrets … Continue Reading
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 … Continue Reading
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, … Continue Reading
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 … Continue Reading
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 … Continue Reading