As we have previously reported, courts across the country are adjourning most appearances, including trials, and hearing only “emergency matters” during the current COVID-19 crisis. As a result, obtaining emergency injunctive relief may be more difficult than in normal circumstances. And attempting to obtain injunctive relief to enforce non-compete agreements against employees who are laid off, while permissible in a majority of states, may be particularly difficult now given that we are quickly entering (if not already in) a period of high unemployment. At the same time, some employers are loosening security measures in the name of convenience and efficiency for remote workers, potentially making trade secret misappropriation easier (we have provided tips for avoiding just that). But that does not mean employers are out of luck if an employee (or someone else) misappropriates its trade secrets or steals its customers. Companies that are genuinely and immediately harmed by trade secret misappropriation and breach of restrictive covenants should still seriously consider seeking injunctive relief, particularly if the activity is causing significant harm to their business. Damages are always an available, if not immediate, remedy, however, where injunctive relief may not be practical.
Continue Reading Emergency Injunction Not in the Cards? Damages May Be Your Winning Hand
Federal Precedents Under the DTSA Have Arrived
While the Defend Trade Secrets Act of 2016 (“DTSA”) has only been in effect for a few months, the first wave of cases raising DTSA claims have started to generate federal decisions. In what appears to be the first substantive ruling under the Act, the Northern District of California illustrated some the advantages – and limitations – of DTSA claims
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Federal Appellate Court Finds Motion To Enjoin Disclosure Of Confidential Information Should Not Be Denied Merely Because The Same Information Could Have Been Acquired Lawfully
The United States Court of Appeals for the Fifth Circuit, reversing a trial court’s refusal to enter an order enjoining disclosure of confidential information, recently held that the lower court erred when it (a) ruled that the moving party must satisfy all six trade secret balancing test factors, (b) rejected a party’s request for an evidentiary hearing with respect
Continue Reading Federal Appellate Court Finds Motion To Enjoin Disclosure Of Confidential Information Should Not Be Denied Merely Because The Same Information Could Have Been Acquired Lawfully
How Do I Get a TRO Against a Former Employee If Arbitration in FINRA Is Mandatory?
Occasionally, you may need emergency relief against a former employee who has absconded with a client list, your confidential information, and the clients themselves. If you are very unlucky, you may need to get a TRO against his new employer as well. If you, the former employee, and the new employer are all required to arbitrate
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Virginia Federal Court Finds For Employer on Fidicuary Duty Claim Against Former Employee
A Virginia federal court district court recently issued a significant decision awarding lost profits to an aggrieved employer for breach of fiduciary duty by a former employee. The Court found that the ex-employee was not able to deduct his services for the company as an expense against the damages award. Further, the Court found that the employer’s
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Trade Secret Protection Best Practices Webinar: Hiring Competitors’ Employees and Protecting the Company When Competitors Hire Yours
Please join us for the seventh webinar in the 2012 Trade Secrets Webinar Series on November 28th at noon c.s.t./10:00 a.m. pacific. This webinar will discuss best practices when dealing with newly hired or departing employees and the incumbent trade secret, non-competition and information protection issues.
In today’s highly mobile and competitive world, employees frequently move between companies within the
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Protecting Disclosure Of Trade Secrets Included In A Bid Responsive To A Government Request For Proposal
When confidential information or trade secrets are provided to a government agency in a bid for a public contract, they might wind up being disclosed to a competitor or others unless great care is taken by the bidder. Non-disclosure agreements are essential. Of course, all pages containing a trade secret should be designated as “confidential.” Examples of other protective measures
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After Ohio Jury Finds Trade Secret Misappropriation But Awards Zero Damages, Trial Judge Enters Injunction Order But Sets Royalty Payment As Alternative
A manufacturer engaged an independent contractor to improve the efficiency of certain machinery. After the task was completed, the contractor did the same for a competitor of the manufacturer. The manufacturer, claiming that the improvements were its trade secrets, sued the competitor in an Ohio state court for misappropriation. The case went to trial before a jury which returned a verdict
First Circuit Affirms Summary Judgment for Defendant Accused of Breaching Confidentiality Agreement
By Molly Joyce
In the recent decision of The Capability Group, Inc. v. American Express Travel Related Services Company, Inc.,658 F.3d 75 (1st Cir. 2011), the United States Court of Appeals, First Circuit, affirmed summary judgment in favor of a defendant accused of, among other things, breaching a confidentiality agreement between the parties. The court found that the plaintiff,
Continue Reading First Circuit Affirms Summary Judgment for Defendant Accused of Breaching Confidentiality Agreement
Award of Damages for Misappropriation Does Not Preclude Also Awarding Injunctive Relief
Clarifying the legal principle that an injunction will only be entered if there is no adequate remedy at law, the Ohio Court of Appeals held recently that an award of damages for past trade secret misappropriation is not inconsistent with, and does not preclude granting, injunctive relief to prevent future harm. Litigation Management, Inc. v. Bourgeois, 2011 Ohio 2794