As a result of the COVID-19 crisis, and the effective shut down of most of the US economy over the past several weeks (and for the foreseeable future), many companies are currently hemorrhaging cash, others may be temporarily illiquid, and even more are facing pressure from stakeholders to minimize costs (and maximize profits) in order to navigate and weather the current and impending financial storm. But this is no time to be penny wise and pound foolish, particularly when a company’s trade secrets are at risk and the misappropriation of those trade secrets could destroy the company.
Continue Reading Protecting Trade Secrets Without Breaking the Bank (Or Even Negatively Affecting Profits)

As we previously reported,  as a result of the COVID-19 crisis, courts across the country are adjourning most appearances, including trials, and hearing only “emergency matters,” often by teleconference or other remote methods. This presents a new quandary for trade secret and restrictive covenant lawyers, who regularly must seek emergency injunctive relief to protect their clients’ trade secrets and customer goodwill. But it does not follow that these lawyers should be careless about when to seek emergency relief; in fact, quite the opposite, they must be more diligent in that regard during the current pandemic.
Continue Reading Prior Ruling on What Constitutes a Litigation “Emergency” May Not Be a Unicorn After All

Imagine this scenario: You are the general counsel of a company in a particularly competitive industry. A key company employee who has access to some of the company’s most sensitive information has been working remotely for the last three weeks as a result of the COVID-19 crisis, and the employee exploits the opportunity to print or download confidential company information to a personal device, including customer lists and product specifications. The employee then gives notice and immediately begins employment with a direct competitor and begins soliciting your top customers. You consult with outside counsel who drafts a complaint and motion for preliminary injunctive relief and expedited discovery. But, as a result of COVID-19, you cannot obtain emergency relief, or the ability to do so is severely limited. What do you do?
Continue Reading Preparing for Trade Secret and Restrictive Covenant Litigation While the Court Near You is Closed

Even before the COVID-19 pandemic, businesses around the world had been bracing for the financial and operational impact of the new California Consumers Privacy Act (“CCPA”), which took effect January 1, 2020. Despite existing and ongoing uncertainty around how to comply and interpret the law, the courts had already began seeing private class actions brought under the CCPA (or using the CCPA as a placeholder with Business and Professions Code Section 17200 and tort claims) filed in February—each presenting interesting and far-reaching legal questions about the new law.
Continue Reading The Impact of COVID-19 on the California Consumer Privacy Act

Seyfarth attorneys Robert Milligan, John Tomaszewski, and Darren Dummit are presenting “The California Consumer Privacy Act – What It Is and What Clients Need to Know, Particularly in Light of COVID-19,” a webinar for ITechLaw on April 7, 2020, at 9 a.m. Central.

The California Consumer Privacy Act (CCPA) went into effect on January 1,

As we have previously reported, courts across the country are adjourning most appearances, including trials, and hearing only “emergency matters” during the current COVID-19 crisis. As a result, obtaining emergency injunctive relief may be more difficult than in normal circumstances. And attempting to obtain injunctive relief to enforce non-compete agreements against employees who are laid off, while permissible in a majority of states, may be particularly difficult now given that we are quickly entering (if not already in) a period of high unemployment. At the same time, some employers are loosening security measures in the name of convenience and efficiency for remote workers, potentially making trade secret misappropriation easier (we have provided tips for avoiding just that). But that does not mean employers are out of luck if an employee (or someone else) misappropriates its trade secrets or steals its customers. Companies that are genuinely and immediately harmed by trade secret misappropriation and breach of restrictive covenants should still seriously consider seeking injunctive relief, particularly if the activity is causing significant harm to their business. Damages are always an available, if not immediate, remedy, however, where injunctive relief may not be practical.
Continue Reading Emergency Injunction Not in the Cards? Damages May Be Your Winning Hand