Defend Trade Secrets Act

In Seyfarth’s seventh installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Andrew Boutros and John Schleppenbach focused on criminal liability for trade secret theft, including four key statutes, key elements for criminal prosecution, civil RICO under the Defend Trade Secrets Act, and best practices for avoiding misappropriation and for handling misappropriation when it

A government contractor learned the hard way that bid documents containing trade secrets are not protected from disclosure in Massachusetts. On September 21, 2018, a Massachusetts U.S. District Court judge ruled that the Defend Trade Secrets Act (DTSA) doesn’t bar requests under the public records law for bid proposals containing a contractor’s trade secrets.
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In Seyfarth’s sixth installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Daniel Hart, Marjorie Culver, Alex Meier, and Paul Yovanic Jr. focused on how to identify the greatest threats to trade secrets, tips and best practices for protecting trade secrets abroad, and enforcement mechanisms and remedies.

As a conclusion to this well-received webinar,

Seyfarth Partner and Trade Secrets, Computer Fraud & Non-Compete Practice Group Co-Chair Robert Milligan is on the panel for the “Hot Topics in Trade Secret Litigation: the DTSA, Remedies, Anti-SLAPP, and Constitutional issues” session on November 8, at the California Lawyers Association Intellectual Property Institute in San Jose, California.

The “Hot Topics in Trade Secret

As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Donal O’Connell, Managing Director of Chawton Innovation Services Ltd.

An audit is the examination of a specific aspect of an organization, ideally by someone independent of that organization.

The purpose of an audit is to provide independent assurance that an organization’s management, governance, and processes are operating effectively and that any associated assets are being properly and professionally managed.
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On Tuesday, August 14, 2018, Seyfarth Partner and Trade Secrets, Computer Fraud & Non-Compete Practice Group Co-Chair Robert Milligan is presenting a webinar focused on the Defend Trade Secrets Act (DTSA). The Knowledge Group webinar, titled “Defend Trade Secrets Act Litigation in the 2018 Landscape: Understanding New Trends and Developments,” is from 3 p.m. to

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).
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A recent decision from the Eastern District of Pennsylvania reinforces the importance of the timing of purported misconduct in alleged violations of the Computer Fraud and Abuse Act (CFAA) and Defend Trade Secrets Act (DTSA). In Teva Pharmaceutical USA, Inc. v. Sandhu, et al., 2018 WL 617991 (Jan. 30, 2018), Judge Savage found that a defendant former executive could not be liable under the CFAA for conduct that occurred while she had authorized access to computers from which she misappropriated trade secrets. Id. at *1. However, the court also found that CFAA claims could be brought against the recipients of those trade secrets under an “indirect access” theory, and that DTSA claims could be brought on the basis of activity that began before the enactment of the DTSA but continued to occur after its passage.
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In Seyfarth’s second installment in its 2018 Trade Secrets Webinar Series, Seyfarth attorneys Scott Humphrey, Erik Weibust, and Marcus Mintz focused on trade secret and client relationship considerations in the banking and financial services industry, with a particular focus on a firm’s relationship with its FINRA members. In addition, the panel covered what to do

Tervis Tumbler Company, the maker of the infamous insulated tumblers, has found itself in hot water with a former supplier, Trinity Graphic. Trinity filed suit in the Middle District of Florida against Tervis and its new supplier, Southern Graphics, alleging misappropriation of trade secrets under both the Defend Trade Secrets Act (“DTSA”) and Florida trade secret statute along with breach of confidentiality and non-disclosure agreement, fraud, aiding and abetting, and civil conspiracy. Trinity seeks compensatory, exemplary and punitive damages, disgorgement of profits related to the misappropriation and attorney’s fees and costs.

In support of its claims, Trinity alleges that it “revolutionized” the creation of tumbler inserts with the development of its “Trinity Wrap.” Trinity further alleges that before it created the Trinity Wrap at Tervis’ request, Tervis was limited to the use of “crude and costly embroidery or flat one-sided images.” In creating the Trinity Wrap, Trinity purports to have developed two trade secrets: a printing method that reduces static electricity during the printing process, resulting in increased visual sharpness and a second printing method using a state of the art printer to perfectly align images printed on both sides of a transparent medium.
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