Throughout 2017, Seyfarth Shaw’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever-changing area of law. The series consisted of six webinars:

  1. 2016 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets,
    Non-Compete and Computer Fraud Law
  2. Simple Measures for Protecting Intellectual Property and Trade Secrets
  3. Protecting Confidential Information and Client Relationships in the Financial Services Industry
  4. Protecting Your Trade Secrets in the Pharmaceutical Industry
  5. Trade Secret Protection: What Every Employer Needs to Know
  6. Protecting Trade Secrets in the Social Media Age

Continue Reading 2017 Trade Secrets Webinar Series Year in Review

Robert Milligan, along with Certified Forensic Computer Examiner Jim Vaughn, presented The Defend Trade Secrets Act – The Biglaw Partner and Forensic Technologist Perspective webinar for Metropolitan Corporate Counsel on Thursday, November 2. They focused on the key features of the DTSA and compared its key provisions to the state Uniform Trade Secrets Act (UTSA) adopted in many states, and they provided practical tips and strategies concerning the pursuit and defense of trade secret cases in light of the DTSA and some predictions concerning the future of trade secret litigation.

As a conclusion to this well-received webinar, we compiled a summary of takeaways:

  • The Defend Trade Secrets Act provides trade secret owners a new federal property right and provides them additional options and remedies when their trade secrets are stolen.
  • Employers should consider how they treat employee personally owned devices for work as well as corporate issued mobile devices. Getting access to those devices may prove to be challenging upon an employee’s departure. Having a policy and technology in place to allow the employer to gain access to their data is critical.

 

Robert Milligan, along with Certified Forensic Computer Examiner Jim Vaughn, is presenting The Defend Trade Secrets Act – The Biglaw Partner and Forensic Technologist Perspective webinar for Metropolitan Corporate Counsel on Thursday, November 2 at 1:00 p.m. Eastern.

On May 11, 2016, President Obama signed the Defend Trade Secrets Act (DTSA), which Congress passed on April 27, 2016. With President Obama’s signature, the DTSA has now become the law of the land, and a federal civil remedy for trade secrets misappropriation now exists.

Continue Reading Robert Milligan to Present Defend Trade Secrets Act Webinar

Earlier this week, the United Parcel Service, Inc. (“UPS”) filed a lawsuit in the Northern District of Georgia, Atlanta Division, against several unidentified UPS pilots, who are referred to in the complaint as “John Does 1-5.” The lawsuit alleges that “[i]n August 2017, certain UPS employees developed strategic plans regarding the Company’s aircraft. These plans were developed for, among other things, reporting to senior executives of the Company in late August 2017 so that they could make certain strategic business and financial decisions. Portions of these plans were included in a PowerPoint presentation created by this limited group of UPS employees (the “PowerPoint”). In preparation for the meeting, a very limited number of UPS employees had access to the PowerPoint for the purpose of its drafting and editing.” (Complaint, ¶ 7.) The lawsuit goes on to allege that the PowerPoint contained highly confidential and trade secret information. (Id. at ¶¶ 9-10.) Continue Reading Big Brown v. PowerPoint Pilferers in Trade Secret Spat

On September 7, at 3:00 p.m. – 4:00 p.m. Eastern, Robert Milligan will present “Understanding and Exploring the DTSA” CLE webinar.

The Defend Trade Secrets Act of 2016 establishes federal jurisdiction over trade secret theft and creates a federal cause of action for trade secret misappropriation. It affords damages and injunctive relief and further allows an aggrieved party to obtain an ex parte seizure of property necessary to prevent the propagation or dissemination of a trade secret. However, the law also provides immunity for certain disclosures, such as in a court filing under seal or to a government official for the purpose of reporting a suspected violation of law. Notice of the immunity provisions must be included in any contract or agreement with an employee that governs the use of a trade secret or other confidential information. Continue Reading Robert Milligan to Present “Understanding and Exploring the DTSA” CLE Webinar

In Seyfarth’s fourth webinar in its series of 2017 Trade Secrets Webinars, Seyfarth attorneys Robert Milligan and Joshua Salinas were joined by Jim Vaughn, one of California’s leading computer forensics experts, presented Trade Secret Protection: What Every Employer Needs to Know. The panel focused on how to help employers navigate the tricky trade secrets waters and provided best practices for trade secret protection.

As a conclusion to this well-received webinar, we compiled a summary of takeaways: Continue Reading Webinar Recap! Trade Secret Protection: What Every Employer Needs to Know

50 State Desktop Reference: What Businesses Need to Know About Non-Compete and Trade Secret Law

It has been an extraordinary year regarding trade secret and non-compete issues. We saw more and more cases filed in federal court asserting claims under the Defend Trade Secrets Act (“DTSA”) and for alleged violations of non-competes. Some states passed legislation further narrowing the use of non-compete agreements, and some media outlets, academics, and regulators have continued their criticism of such agreements. We expect over the next year, the law to continue to develop regarding the DTSA’s application, definitions, scope, limitations, benefits and interpretation with regard to the immunity provisions. Our 50 State Desktop Reference is a useful guide to know how the law is currently applied in each state.

Seyfarth’s Trade Secrets, Computer Fraud and Non-Competes Practice Group is pleased to provide the 2017-2018 Edition of our one-stop 50 State Desktop Reference, which surveys the most-asked questions related to the use of covenants and intellectual capital protection in all 50 states. For the company executive, in-house counsel, or HR professional, we hope this guide will provide a starting point to answer your questions about protecting your company’s most valuable and confidential assets.

How To Get Your Desktop Reference

To download the pdf of 2017-2018 Edition of the 50 State Desktop Reference, click here.

To request a hard copy of the Desktop Reference, click on the button below.

As a special feature of our blog—special guest postings by experts, clients, and other professionals—please enjoy this blog entry from Daniel Garrie, senior partner and co-founder of Law & Forensics. 

This post originally appeared on the Legal Executive Institute blog. 

The dirty secret of trade secret disputes is that even if you win, it can be difficult to get back to where you started. It’s like closing the stable door after the horses have run off with trade secret disputes. A court or arbitration panel may not have trouble reaching findings of fact and conclusions of law, but the secrets are still out there. And ensuring that the trade secret information is entirely removed from the offending company’s systems is a lot harder than rounding up wild horses. Continue Reading The Neutral Corner: Using Forensic Neutrals in Trade Secret Disputes

The Defend Trade Secrets Act (DTSA) states very clearly that an injunction issued pursuant thereto may not “prevent a person from entering into an employment relationship,” and that any conditions placed on a former employee’s employment in an injunction must be based on “evidence of threatened misappropriation and not merely on the information the person knows.” (Emphasis added). This language appears to bar injunctive relief under the DTSA based on the “inevitable disclosure doctrine,” which in some states permits a court to enjoin a former employee from working for a competitor—even in the absence of a signed non-compete agreement—if it can be established that the employee would “inevitably” (even if inadvertently) use his or her former employer’s trade secrets on behalf of a new employer. As a result, when the statute was first enacted, many commentators assumed that claims based on the inevitable disclosure doctrine would quickly be shot down. In practice, however, that does not appear to be the case. At the very least, some recent federal court decisions have sown confusion around this issue.

We recently wrote about a federal court’s ruling in the Northern District of Illinois that applied the inevitable disclosure doctrine to a DTSA claim. Despite its non-precedential value, this ruling was significant because it interpreted a federal law to allow the application of a doctrine that has been expressly rejected in several states, including California, Maryland, and Virginia, and, again, appears to be barred by the plain language of the DTSA. That case can perhaps be explained by the fact that it was decided on a motion to dismiss, not a motion for injunctive relief, and thus the DTSA’s apparent prohibition on basing an injunction on inevitable disclosure was not necessarily implicated. The same cannot be said about a decision that was issued just three weeks later by the United States Court of Appeals for the Third Circuit, in which the Court applied the inevitable disclosure doctrine in the context of a temporary restraining order. The case is Fres-co Systems USA, Inc. v. Hawkins, 2017 WL 2376568 (3rd Cir. June 1, 2017). Continue Reading The Third Circuit Addresses the Defend Trade Secrets Act and Appears to Have Applied the Inevitable Disclosure Doctrine

shutterstock_314177504Uber’s ongoing battle with Waymo in the Northern District of California federal court over technology used in self-driving cars provided another significant decision concerning the broad scope of trade secret preemption under California state law.

Waymo accused Levandowski (a former employee) of taking more than 14,000 company files before leaving Waymo and starting his own self-driving truck company (which Uber bought for $680 million). Waymo asserted several claims against Uber for misappropriation of trade secrets under the federal Defend Trade Secrets Act (“DTSA”) and the California Uniform Trade Secrets Act (“CUTSA”). In addition to the trade secret claims, Waymo asserted four claims for patent infringement and one claim for violation of section 17200 of California’s Business and Professions Code. Continue Reading California Federal Court Finds CUTSA Preemption on Unfair Competition Claim in Uber Row