shutterstock_393956815The Ninth Circuit recently held in United States v. Liew that it was not plain error for the district court not to instruct the jury that disclosure “‘to even a single recipient who is not legally bound to maintain [a trade secret’s] secrecy’ destroys trade secret protection.” As a result, the Ninth Circuit upheld criminal convictions under the (pre-Defend Trade Secrets Act) Economic Espionage Act (“EEA”) for trade secret misappropriation despite a third-party competitor (who was not bound by any confidentiality obligations) acquiring the trade secret.

The trade secret at issue in United States v. Liew concerned methods of producing titanium dioxide (TiO2), a white pigment found in anything from paint to Oreo creme, which makes its manufacture a (surprisingly) competitive industry. DuPont has been a leader in TiO2 production since the 1940s, when it became more efficient to produce TiO2 through a chloride-based process. DuPont opened chloride plants around the US, including one in Antioch, California and one in Ashtabula, Ohio. The Ashtabula plant was built for Sherwin-Williams, subject to a fifteen-year confidentiality agreement effective through the plant’s sale in the 1970s. The plant was sold multiple times thereafter and was ultimately acquired by a competitor of DuPont who was not bound by any nondisclosure or confidentiality obligations to the company. 
Continue Reading Trade Secrets May Retain Protections Despite Disclosure to Single Competitor

OverviewIn Seyfarth’s eighth installment in the 2016 Trade Secrets Webinar Series, attorneys Andrew Boutros, Katherine Perrelli and Michael Wexler focused on criminal liability for trade secret misappropriation. Trade secret misappropriation is increasingly garnering the attention of federal law enforcement authorities. This reality creates different dynamics and risks depending on whether the company at issue is being accused of wrongdoing or
Continue Reading Webinar Recap! The Intersection of Trade Secrets Violations and the Criminal Law

Tank Connection, LLC v. HaightThe stakes are getting higher: Trade secret misappropriation is increasingly garnering the attention of federal law enforcement authorities. This reality creates different dynamics and risks depending on whether the company at issue is being accused of wrongdoing or is the victim of such conduct.

On Tuesday, October 4, at 12:00 p.m. Central, Seyfarth attorneys Katherine E. Perrelli, Andrew S. Boutros
Continue Reading Upcoming Webinar: The Intersection of Trade Secrets Violations and the Criminal Law

shutterstock_144630422Although stealing bases, and even signs, in baseball may be part of the game, stealing another team’s trade secrets can land you in federal prison, as one executive recently learned the hard way.

As we previously reported, the FBI has been investigating the St. Louis Cardinals for hacking into the Houston Astros’ internal computer network and stealing proprietary information,
Continue Reading When Stealing in Baseball Can Land You in Jail: Computer Fraud Sentencing Announced in MLB Case

shutterstock_152933135In today’s post, we have answered some of the most frequent and significant questions that we are asked about trade secret disputes and employment risks.

  1.  Could you provide a brief snapshot of current trends in trade secret disputes? Do companies need to be more aware of the potential risks in this area?

Milligan: Data theft of valuable company trade secrets
Continue Reading Frequently Asked Questions Regarding Trade Secret Disputes and Employment Risks Answered

shutterstock_270428249Generally when one refers to “competitors” in the context of protecting trade secrets, it is in regard to business competitors, not competing sports teams.  And usually when the talking heads on sports radio and television are discussing legal issues, they relate to domestic violence or other crimes, concussions, illicit and performance enhancing drugs, or labor disputes (sometimes even
Continue Reading Corporate Espionage: Not Your Typical Sports-“Gate”

On October 1, 2014, Michael D. Wexler and Robert B. Milligan, partners and co-chairs of Seyfarth Shaw’s Trade Secrets, Computer Fraud & Non-Competes practice group participated in a Q&A mini-roundtable from Corporate Disputes Magazine on current trends in trade secret disputes and the steps companies can take to reduce these disputes.  Below are fielded questions from the Seyfarth Shaw Reprint
Continue Reading Trade Secret Attorneys Discuss Latest Issues in Trade Secret Litigation in Corporate Disputes Magazine

We are pleased to let you know that the webinar “Protecting Trade Secrets: The Current Landscape, Top Threats, Best Practices for Assessing and Protecting Trade Secrets, Proposed Legislation and Future Scenarios” is now available as a podcast and webinar recording.

Robert B. Milligan, partner and co-chair of Seyfarth Shaw’s Trade Secrets, Computer Fraud & Non-Competes practice group, Daniel
Continue Reading Webinar Recap! Protecting Trade Secrets: The Current Landscape, Top Threats, Best Practices for Assessing and Protecting Trade Secrets, Proposed Legislation and Future Scenarios

As a special feature of our blog –special guest postings by experts, clients, and other professionals –please enjoy this blog post by digital forensics expert Trent Livingston, a Director of iDiscovery Solutions.

By Trent Livingston

Do you recall the early days of the spy movie genre? Many of these movies depicted cloaked secret agents slinking around dark offices snapping
Continue Reading Today’s Connected Employee: A License to Steal

The judgments rendered in two recent 2014 federal criminal cases reveal the inherent complexity in prosecuting international trade secret misappropriation claims.

In U.S. v. Liew, Judge White of the U.S. District Court for the Northern District of California sentenced defendant Walter Liew to 15 years in prison for misappropriating trade secrets from chemical giant DuPont and selling them to
Continue Reading When Is The Possession of International Trade Secrets A Mistake Or Economic Espionage: Contrasting U.S. v. Yeh with U.S. v. Liew