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

Tag Archives: non-disclosure

We Traced The Trade Secret Leak … It’s Coming From Inside The Business

Posted in Trade Secrets

Cross Posted from California Peculiarities.

Seyfarth Synopsis:  Protecting trade secrets from employee theft requires more than using an NDA when onboarding employees. If businesses want to protect confidential information, they need a cradle-to-grave approach, reiterating employee obligations regularly, including during exit interviews. (Yes, you need to do exit interviews!)

Headline stories in intellectual property theft tend to involve foreign … Continue Reading

Employee Data Theft and Corporate Hacking Studies Point to Need for Additional Federal Trade Secrets Legislation

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

By Robert Milligan and Jessica Mendelson

Today is the deadline for public comments requested by the Obama Adminstration on any proposed changes to federal law to combat trade secret theft. 

Some legal commentators have proposed several suggested changes to improve America’s trade secrets laws, including creating a federal civil cause of action for trade secrets misappropriation and clarifying that the … Continue Reading

New York Federal Court Rejects Heightened Specificity Pleading Standard for Breach of Confidentiality and Non-Disclosure Claim

Posted in Trade Secrets, Unfair Competition

By Joshua Salinas and Jessica Mendelson

The secret is out, Tic Tacs and bubblegum have the most valuable and desirable real estate in the entire grocery store.

On September 27, 2012, a district court for the Eastern District of New York granted in part and denied in part a motion to dismiss in a commercial dispute arising out of the … Continue Reading

California Federal District Court Finds That Plaintiffs May Assert A Claim For Alleged Misleading Actions of Agent and Misuse of Confidential Information Not Rising To Level Of A Trade Secret In Youth Hostel Dispute

Posted in Breach of Fiduciary Duty, Practice & Procedure, Trade Secrets

By Robert Milligan and Jeffrey Oh

In business, as in life, trust and communication are key to healthy and productive relationships. When these crucial elements are lost, as in the case of What 4 LLC v. Roman & Williams, Inc., 2012 WL 1815629 (N.D.Cal.), the fallout is often contentious and requires court intervention.

In a recent decision granting in … Continue Reading

Seventh Circuit Rejects Pool Technology Company’s Trade Secrets Claim

Posted in Trade Secrets

On March 29, 2012, the Seventh Circuit upheld summary judgment in favor of a defendant on plaintiff’s claims for trade secrets misappropriation and unjust enrichment, holding that plaintiff failed to take any measures, let alone reasonable measures, to protect its alleged trade secrets during joint marketing negotiations with defendant. Fail-Safe LLC v. A.O. Smith Corp., No. 11-1354 (7th Cir. Mar. … Continue Reading

Trade Secret Claim Wins Out to Protect Software.

Posted in Trade Secrets

In Coleman v. Retina Consultants, P.C., the Georgia Supreme Court reversed a trial court’s decision to enjoin a former employee based on his non-compete provision, but it upheld the injunction to the extent that it prevented the employee from using his former employer’s trade secrets. The case is especially interesting from a factual perspective, as it covers the increasingly common … Continue Reading

Consulting Engineers Corp. v. Geometric, Ltd.: Fourth Circuit Holds That Negotiating Non-Competition Agreements Does Not Subject A Company To Personal Jurisdiction

Posted in Practice & Procedure

The United States Court of Appeals for the Fourth Circuit recently affirmed the denial of jurisdiction by the United States District Court for the Eastern District of Virginia over two companies foreign to the Commonwealth of Virginia. See Consulting Engineers Corp. v. Geometric, Ltd., — F.3d —, 2009 WL 738165 (4th Cir. Mar. 23, 2009). Consulting Engineers Corporation (“CEC”) sued … Continue Reading

Georgia Court of Appeals Repeats Requirements for Non-compete and Non-disclosure Covenants

Posted in Restrictive Covenants

In Global Link Logistics, Inc. v. Briles, No. A08A1871, (Ga. App. Feb. 18, 2009), the Georgia Court of Appeals recently reiterated Georgia court’s requirements for non-compete and non-disclosure covenants. The case involved the departure of Jim Briles from Global Link Logistics to a competitor. Briles moved for a declaratory judgment stating that the restrictive covenants in his employment agreement – … Continue Reading

Georgia House & Senate Committees Meet to Consider Restrictive Covenants in the Commercial Arena

Posted in Restrictive Covenants

This morning (September 24, 2008), Rep. Kevin Levitas and Sen. Judson Hill from the Georgia Legislature convened the first meeting of a legislative study committee reviewing the law of Georgia with respect to restrictive covenants in employment and business relationships. The House Committee is chaired by Representative Kevin Levitas, and includes the following members: Representative Tim Bearden; Representative Butch Parrish; Representative Richard … Continue Reading

Northern District of California Grants Preliminary Injunction in Trade Secrets Matter

Posted in Trade Secrets

In a February 29, 2008 Order, the Northern District of California entered a preliminary injunction against four defendants on behalf of Verigy US, Inc. Verigy demonstrated in discovery that Romi Omar Mayder, the principal of Silicon Test Systems, Inc., e-mailed a number of sensitive documents to a business partner, Robert Pochowski. The documents concerned technology for testing flash memory cards.… Continue Reading

Bubble Bursts On Plaintiff Who Failed To Demonstrate That Trade Secret And Confidential Information Related To His NASCAR-Themed “Pit Crew Chew” Was Protected By Non-Disclosure Agreement

Posted in Restrictive Covenants, Trade Secrets

A federal court in the Southern District of California recently burst the bubble on a plaintiff’s suit alleging that the defendant, the alleged creator of a novelty chewing gum product, had stolen the plaintiff’s idea for a NASCAR-themed bubble “chew” by granting the defendant’s motion for summary judgment.

The decision provides a reminder to companies that provide confidential and trade … Continue Reading

California Federal District Court Awards $ 6.6 Million In Damages In Trade Secret Suit

Posted in Restrictive Covenants, Trade Secrets

After granting summary judgment for plaintiff in late November 2007, Judge Susan Illston of the U.S. District Court for the Northern District of California recently awarded plaintiff $6.6 million in damages, the majority of which related to future lost profits due to breach of contract and misappropriation of trade secrets. Although the motion for summary judgment was uncontested, the court’s … Continue Reading

Jury Returns $21.5 Million Verdict against Sears in Trade Secrets Suit

Posted in Restrictive Covenants, Trade Secrets

RRK Holding Co. v. Sears, Roebuck & Co., No. 04-CV-3944, Verdict (N.D. Ill. Nov. 19, 2007)

A family-owned Wisconsin company that makes power tools recently won a $21.5 million verdict against Sears, Roebuck and Co. after the jury found the national retailer guilty of stealing the design for the popular Craftsman all-in-one cutting tool. Plaintiff RRK Holding Co., formerly known … Continue Reading

Former research director of vitamin supplement company accused of stealing precise formula he was hired to develop

Posted in Restrictive Covenants, Trade Secrets

New lawsuit filed in Utah accuses a former research scientist employed by a nutritional supplement company of stealing trade secrets, customers, and employees when forming a rival vegan supplement company.

Systemic Formulas, Inc. claims that its former research director, Daeyoon Kim, is using Systemic’s trade secrets and proprietary information as the basis for its formula in the rival vegan supplement … Continue Reading

Recent California Appellate Decision Finds That Company Failed To Demonstrate That Its Source Code Had Independent Economic Value

Posted in Trade Secrets

A recent California Court of Appeal decision reaffirmed what those who practice trade secret law already knew, but do not always focus upon, in trade secret litigation –the purported trade secret cannot qualify for protection under California’s trade secret statute unless there is a showing that the information has a demonstrated economic value from not being known to third parties … Continue Reading