shutterstock_511683898On May 11, 2017, a Northern District of Illinois federal court ruled that a Plaintiff properly alleged misappropriation under both the federal Defend Trade Secrets Act (DTSA) and the Illinois Trade Secrets Act (ITSA) in a case where the employee downloaded files onto a personal thumb drive and then went to a competitor.

Plaintiff  Molon Motor and Coil Corporation (“Molon”) contended that its former Head of Quality Control, Manish Desai, downloaded confidential data onto a portable data drive before leaving Molon for a competitor, Nidec Motor Corporation (“Nidec”). Molon further contended that Desai provided the confidential data to Nidec and Nidec then used (and continues to use) the confidential data to compete with Molon. Nidec filed a Motion to Dismiss Molon’s Complaint against Nidec (Molon did not sue Desai) on the basis that Molon could not state a claim under the DTSA or the ITSA because a) Desai downloaded the trade secrets while still employed by Molon, and b) Molon did not make a plausible allegation that Nidec used the trade secrets.
Continue Reading Illinois Federal Court Allows Inevitable Disclosure Theory in Defend Trade Secrets Act Case

shutterstock_192971546Three very recent decisions reflect the irreconcilable division of judicial authority regarding the adequacy of at-will employment as the sole consideration for an otherwise valid non-compete.  Compare (a) Standard Register Co. v. Keala, No. 14-00291 (D. Haw., June 8, 2015) (adequate under Hawaii law) (“majority rule”), with (b) Hunn v. Dan Wilson Homes, Inc., Nos. 13-11297
Continue Reading Is An Offer Of At-Will Employment Adequate Consideration For A Non-Compete? Recent Court Rulings Split Three Ways

shutterstock_186292982In Illinois federal court, a plaintiff alleged aspects of their LinkedIn group were trade secrets misappropriated by the defendant. The defendant moved to dismiss for failure to state a claim. The court denied the motion in part and granted in part, ruling that portions of social media groups may be protectable under the state’s trade secret law. CDM Media USA,
Continue Reading Aspects of Private Social Media Groups May Be Protectable Under Illinois Trade Secret Law

shutterstock_232865755A Chicago federal judge denied summary judgment to an employer alleged to have misappropriated and converted a subordinate’s trade secrets. Stevens v. Interactive Financial Advisors, Inc., Case No. 11 C 2223 (N.D. Ill., Feb. 24, 2015) (Kennelly, J.).

Summary of the case. After 20 years as a licensed insurance broker, Stevens wanted to provide investment advisory services as
Continue Reading Employer Can Be Found Liable For Misappropriating An Employee’s Trade Secrets

By Robert Milligan and Joshua Salinas

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2013. Please join us for our complimentary webinar on March 6, 2014, at 10:00 a.m. P.S.T., where we will discuss them in greater detail. As with all
Continue Reading Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013

In a ruling announced a few days ago, Chief Judge Ruben Castillo of the U.S. District Court for the Northern District of Illinois adjudicated the validity of a non-compete clause in an employment agreement where the employee had worked for only 15 months and then resigned and began competing. Notwithstanding the latest word from the Illinois Appellate Court — “Illinois
Continue Reading Illinois Federal Court Finds Only 15 Months’ Employment Sufficient Consideration For Non-Compete Agreement

Once a stalwart of adequate consideration in exchange for a restrictive covenant, new employment, remains in flux after the Fifield v. Premier case was not taken up by the Illinois Supreme Court recently. 

Fifield, decided in the summer of 2013 by the First District Appellate Court, held that in order for employment to be adequate consideration for a non-compete,
Continue Reading Illinois Supreme Court Won’t Take Up Non-Compete Case, Adequate Consideration Questions Remain

Overview.  Non-compete and non-solicitation covenants in an employment agreement are not enforceable unless the restrictions are supported by adequate consideration.  Illinois courts have held that there “must be at least two years or more of continued employment to constitute adequate consideration in support of a restrictive covenant.”  No reported decisions from other states are in accord.

The covenants and the
Continue Reading Illinois Appellate Court Rules That Employment For Less Than Two Years Is Inadequate Consideration For Enforcement Of Non-Compete And Non-Solicitation Covenants

Think flash mobs are innocent fun?  Well if you’re in Illinois, proceed with caution.  The Illinois legislature recently passed a bill which provides tougher punishments for people whose social media posts result in flash mobs.  The bill was recently signed into law by Illinois Governor Pat Quinn.

The new law is intended to reduce violent events in Chicago, particularly the
Continue Reading Illinois Passes Social Media Legislation To Regulate Flash Mobs

The First District of the Illinois Appellate Court, in the case of Northwest Podiatry Center, Ltd., et al. v. Ochwat, et al., recently found that a trial court improperly enjoined physician-defendants in a few key respects. The decision serves as a reminder of how courts will closely scrutinize restrictive covenants in Illinois.

The case was filed after two longtime
Continue Reading Illinois Appellate Court Partially Reverses Broad Non-Compete Injunction Against Physicians