Washington state has joined the ranks of an ever-growing number of states that impose significant restrictions on employee non-compete agreements. On May 9, 2019, Governor Jay Inslee signed House Bill 1450, titled “An Act Relating to restraints, including noncompetition covenants, on persons engaging in lawful professions, trades, or businesses,” into law. The Act will go into effect on January 1, 2020. We reported on the bill in detail in March.

This change to Washington law is significant. Businesses with employees or independent contractors in the state should revisit their non-compete agreements and take the necessary steps to ensure compliance with the Act by the end of this year. Among other things:
Continue Reading Washington State Governor Signs Law Severely Limiting Non-Competes

Academics and advocacy groups—including nonprofit organizations and several major labor unions—have filed a petition with the Federal Trade Commission asking the agency to initiate the rulemaking process and ban non-compete agreements. The petitioners advocate regulations “to prohibit employers from presenting a non-compete clause to a worker (regardless of whether the worker is classified as an ‘employee’ or an ‘independent contractor’), conditioning employment or the purchase of a worker’s labor on the worker’s acceptance of a non-compete clause, or enforcing, or threatening to enforce, a non-compete clause against a worker.”
Continue Reading Labor Unions, Advocacy Groups, and Academics Ask Federal Trade Commission to Issue Rules Banning Non-Competes

As readers of this blog well know, there is a growing trend of state legislatures seeking to limit or outright ban non-competes. (See here, here, and here as just a few examples of state efforts to curb non-competes—not to mention the proposed federal legislation and international efforts—in the last six months.) Last week, the Washington Senate jumped on the bandwagon by passing a bill with a 30–18 vote that would severely limit the enforceability non-competes. (Similar efforts failed last year, as we reported here.)  Some of the key features of this year’s bill are as follows:
Continue Reading Washington State Lawmakers Seek to Partially Ban Non-Competes

In Seyfarth’s fourth installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Robert Milligan and Scott Atkinson, along with Center for Responsible Enterprise and Trade CEO Pamela Passman, focused on identifying the greatest threats to trade secrets, implementing an effective trade secret protection program, and enacting effective risk reduction processes across an organization.

As a conclusion to this well-received
Continue Reading Webinar Recap! Protecting Trade Secrets from Cyber and Other Threats

In what appears to be a first under the Defend Trade Secrets Act (“DTSA”), a United States District Judge has thrown out claims against an alleged trade secret thief on the basis of the DTSA’s immunity for confidential disclosures to attorneys in the course of investigating a suspected violation of the law. Christian v. Lannett Co., Inc., No. 16-cv-00963-CDJ, 2018 WL 1532849 (E.D. Pa. Mar. 29, 2018).

Certain Trade Secret Disclosures to Attorneys or the Government Are Protected

The DTSA exempts from both criminal and civil liability any trade secret disclosure made in confidence to a federal, state, or local official or to an attorney if the disclosure is made “solely for the purpose of reporting or investigating a suspected violation of law.” 18 U.S.C. § 1833(b)(1).
Continue Reading Defend Trade Secrets Act First: Claim Tossed Based on Whistleblower Immunity

On Tuesday, October 10, 2017, the United States Supreme Court denied certiorari in Nosal v. United States, 16-1344. Nosal asked the Court to determine whether a person violates the Computer Fraud and Abuse Act’s prohibition of accessing a computer “without authorization” when using someone else’s credentials (with that other user’s permission) after the owner of the computer expressly revoked the first person’s own access rights. In denying certiorari, the Court effectively killed the petitioner’s legal challenge to his conviction in a long-running case that we have extensively covered here, here, here, here, here, here, and here (among other places). The denial of certiorari leaves further development of the scope of the CFAA in the hands of the lower courts.
Continue Reading Supreme Court Refuses to Hear Password-Sharing Case, Leaving Scope of Criminal Liability Under Computer Fraud and Abuse Act Unclear

shutterstock_486112282In a series of breakfast briefings, Seyfarth attorneys Robert Milligan, Joshua Salinas, and Scott Atkinson, joined by Jim Vaughn, one of California’s leading computer forensic experts, discussed how to navigate the tricky waters and provided best practices for trade secret protection. The briefings covered how to best identify and protect trade secrets, what employers need to know about the DTSA,
Continue Reading Briefing Recap! Trade Secret Protection: What Every California Employer Needs to Know

shutterstock_370595594We are pleased to announce the webinar “Trade Secret Audits: You Can’t Protect What You Don’t Know You Have” is now available as a webinar recording.

In Seyfarth’s ninth installment in the 2016 Trade Secrets Webinar Series, attorneys Robert Milligan, Eric Barton, and Scott Atkinson focused on trade secret audits. It is not uncommon for companies to find themselves

Continue Reading Webinar Recap! Trade Secret Audits: You Can’t Protect What You Don’t Know You Have

WebinarOn Wednesday, November 16, at 12:00 p.m. Central, Seyfarth attorneys Robert B. Milligan, Daniel P. Hart and Scott E. Atkinson will present “Trade Secret Audits: You Can’t Protect What You Don’t Know You Have,” the tenth installment in Seyfarth’s 2016 Trade Secrets Webinar series.

Trade secrets are critical intellectual property for most businesses, whether they realize it or not. The
Continue Reading Upcoming Webinar: Trade Secret Audits — You Can’t Protect What You Don’t Know You Have

shutterstock_414545476Not exactly. A divided Ninth Circuit panel recently affirmed the conviction of a former employee under the Computer Fraud and Abuse Act (“CFAA”), holding that “[u]nequivocal revocation of computer access closes both the front door and the back door” to protected computers, and that using a password shared by an authorized system user to circumvent the revocation of the former
Continue Reading Computer Fraud and Abuse Act Ruling: Did the Ninth Circuit Just Criminalize Password Sharing?