It is axiomatic that in order for information to be considered a trade secret, it must have been kept secret. But what if the trade secret is disclosed without the owner’s consent? Such was the issue in Intellisoft, Ltd. v. Wistron Corp. et al., No. H044281, slip op. (Cal. Ct. App. Oct. 16, 2019), a recent unpublished decision from the California Court of Appeal for the Sixth Appellate District.
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Seyfarth Trade Secrets Attorneys to Participate in The Sedona Conference Working Group 12 Annual Meeting in Charlotte
Seyfarth Trade Secrets Attorneys are participating in The Sedona Conference Working Group 12 Annual Meeting in Charlotte, North Carolina, November 4–5, 2019.
On November 4, Seyfarth Partner and Trade Secrets, Computer Fraud & Non-Competes Practice Group Co-Chair Robert Milligan is speaking on “The Employee Life Cycle Relating to Trade Secrets” panel, and Seyfarth Partner Erik
Seyfarth Trade Secret and Data Protection Attorneys to Participate in ITechLaw 2019 European Conference
Seyfarth is pleased to be a Global Sponsor at ITechLaw’s 2019 European Conference in Dublin, October 30–November 1.
ITechLaw is a not-for-profit organization established to inform and educate about the unique legal issues arising from the evolution, production, marketing, acquisition and use of information and communications technology. Founded in 1971, ITechLaw is a worldwide organization
Can a Party Recover Damages for the Anticipated Future Use of Trade Secrets?
Courts have long lamented that “computing damages in a trade secret case is not cut and dry,” Am. Sales Corp. v. Adventure Travel, Inc., 862 F. Supp. 1476, 1479 (E.D. Va. 1994), meaning that “every [trade secret] case requires a flexible and imaginative approach to the problem of damages,” Univ. Computing Co. v. Lykes-Youngstown Corp., 504 F.2d 518, 538 (5th Cir. 1974).
The federal Defend Trade Secrets Act (“DTSA”) and virtually every state’s version of the Uniform Trade Secrets Act (“UTSA”) (only New York has not adopted the UTSA) permits recovery of damages for (1) actual loss caused by the misappropriation; (2) unjust enrichment that is not addressed in computing damages for actual loss; or (3) a reasonable royalty for the misappropriator’s unauthorized disclosure or use of the trade secret. There has been little guidance from the courts, however, as to how to calculate these different, and sometimes competing damages calculations, many relying on the “flexible and imaginative approach” set forth in the Fifth Circuit’s 1974 pre-UTSA University Computing decision. Even more difficult is the case where a plaintiff’s damages are based on the defendant’s anticipated future use of the trade secret, given that those damages necessarily will involve speculation about the revenues the defendant will generate from its use of the trade secret.
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Please Join Us! An Update on Trade Secret and Restrictive Covenant Law
What You Need to Know about Protecting Company Assets in the Age of Employee Mobility and Digital Theft
Thursday, November 14, 2019
8:00 a.m. – 8:30 a.m. Central Time: Breakfast & Registration
8:30 a.m. – 10:00 a.m. Central Time: Program
Seyfarth Shaw LLP
233 South Wacker Drive, Suite 8000
Chicago, IL 60606
There is no
Katherine Perrelli Named Vice-Chair of the ABA Intellectual Property Section’s Trade Secrets and Interferences with Contracts Committee
Seyfarth Partner and Trade Secrets, Computer Fraud & Non-Competes Practice Group Co-Chair Katherine Perrelli was recently named a vice-chair of the Trade Secrets and Interferences with Contracts Committee of the American Bar Association Intellectual Property Section.
The Trade Secrets and Interferences with Contracts Committee is focused on issues arising under federal, state, and foreign laws
Seyfarth Partner J. Scott Humphrey to Present “Trade Secrets Theft: A Holistic Approach to Protect Your Company” Webinar
Seyfarth Partner J. Scott Humphrey is presenting the “Trade Secrets Theft: A Holistic Approach to Protect Your Company” webinar for The Knowledge Group on Wednesday, October 2 from 3:00 p.m. to 4:30 p.m. Eastern Time.
At this webinar, a seasoned panel of thought leaders and professionals will provide and present to the audience an in-depth
Louisiana Federal Court Rules Information in Patent Application Remains Actionable Trade Secret Under DTSA
The United States District Court for the Eastern District of Louisiana recently held that, under the Defend Trade Secrets Act, 18 U.S.C. § 1836, et seq., information included in a patent application remains an actionable trade secret, thereby extending the time for potential misappropriation until the patent’s publication.
DTSA
The DTSA was enacted in 2016 to expand trade secret law beyond its traditional roots as a state law doctrine, creating the first federal cause of action for trade secret misappropriation. To succeed in bringing a DTSA claim, a plaintiff must prove (1) the existence of a trade secret; (2) the misappropriation of a trade secret by another; (3) and the trade secret’s relation to a good or service used or intended for use in interstate or foreign commerce. Additionally, the owner must take reasonable measures to keep the trade secret a secret. 18 U.S.C. § 1836(b)(1).
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Leadership Update! Katherine Perrelli New Co-Chair of Seyfarth’s Trade Secrets, Non-Competes, and Computer Fraud Group
Seyfarth’s Trade Secrets, Non-Competes & Computer Fraud Group is proud to announce that Seyfarth partner Katherine Perrelli is now a co-chair of the group. She joins partners and co-chairs Michael Wexler and Robert B. Milligan as leaders of the group.
Ms. Perrelli is the former Seyfarth Litigation Department Chair, and she regularly represents clients nationally
Fifth Circuit Holds the TCPA Does Not Apply to Federal Court Diversity Cases
On August 23, 2019, the United States Court of Appeals for the Fifth Circuit issued its long-awaited opinion in Klocke v. Watson, 17-11320, 2019 WL 3977545, at *1 (5th Cir. Aug. 23, 2019), holding that the Texas Citizens Participation Act (“TCPA”) does not apply to diversity cases in federal court. This decision settles a split manifested across dozens of cases at the district courts.
By ruling that the TCPA does not apply to diversity cases in federal court, the Fifth Circuit foreclosed an otherwise potent weapon used by defendants throughout Texas in trade secrets litigation. Because of the TCPA’s extremely broad application, defendants in trade secrets cases, for example, often asserted that claims alleging the misappropriation of trade secrets and related causes of action were based on and related to the defendant’s freedom to speak freely on all topics, including the trade secrets at issue, and its freedom to associate with competitors, and therefore such claims should be dismissed under the TCPA. Such arguments are now foreclosed by this ruling, at least in federal court.
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