As is often true in fashion, what once was old is now new again. But for famed wedding dress designer, Hayley Paige Gutman, she certainly is ruing the Second Circuit’s recent decision to revive its 1999 holding of Ticor Title Ins. Co. v. Cohen, 173 F.3d 63 (2d Cir. 1999). In JLM Couture, Inc. v. Gutman, 24 F.4th 785 (2d Cir. 2022), the Second Circuit held that JLM Couture’s non-compete was enforceable through New York’s oft-overlooked “uniqueness” exception. But the real question to me as a litigator is whether this doctrine should become part of the tool bag going forward. Upon analysis, the answer is somewhat mixed and going to be exceedingly fact dependent.
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New York
Robert Milligan to Present “Enforcing of Noncompetition Clauses Under New State Laws” Webinar
On Tuesday, July 14th at 1 p.m. Eastern, Seyfarth partner Robert Milligan is presenting a 90-minute Strafford CLE webinar, “Noncompetes Under New State Law Restrictions: Wage Requirements, Notice, Time, Layoffs, Proposed Federal Legislation.”
The program will discuss recent state legislative changes and case law trends regarding non-compete agreements and other restrictive covenants in New York, California, Illinois, Washington, and other…
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State Attorneys General Investigate Fast Food Franchisor “No Poach” Agreements
The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s Office, and as reported by NPR. In a July 9, 2018 letter, the Attorneys General for New Jersey, Massachusetts, California, Washington, D.C., Illinois, Maryland, Minnesota, New York, Oregon, Pennsylvania, and Rhode Island requested information from eight fast food companies about their alleged use of such provisions. The letter states that the Attorneys General “have learned that certain franchise agreements used in our States and the District of Columbia . . . may contain provisions that impact some employees’ ability to obtain higher paying or more attractive positions with a different franchisee.” In other words, the agreements purportedly prohibit one franchisee of a particular brand from hiring employees of another franchisee of the same brand. …
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Financial Projections, Strategic Plans, And Customer Contract Proposals Can Be Trade Secrets
Two competitors who do research and analysis for advertisers and media companies, concerning how television viewing impacts consumer purchasing, have been in a legal battle over alleged trade secret misappropriation, patent infringement, and other causes of action. The dispute already has produced at least six district court opinions. Recently, in a 47-page non-precedential order issued by the Court of Appeals…
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Seyfarth Attorneys Lead Discussion of Proposed EU Trade Secrets Directive at ITech Law World Technology Conference
This week, at the ITech Law World Technology Conference in New York, Seyfarth attorney Dan Hart briefed members of the International Technology Law Association’s Intellectual Property Committee about the European Commission’s proposed Directive on trade secret protection. As we have written, the new Directive, if enacted, will substantially alter the legal landscape in Europe regarding trade secret protection and…
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Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013
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 …
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Careful, that Slice of Pizza You’re Eating Might Be Full of Trade Secrets…
It’s time for yet another meal filled with trade secrets!
Earlier this month, New York Pizzeria, Inc., a pizzeria chain with over thirty restaurants in the United States and the Middle East, filed a complaint in federal court in Texas alleging trade secret misappropriation. New York Pizzeria alleged that a former employee, as well as individual restaurant owners, were conspiring …
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Comply or Lose: New York Affirms Enforcement of Non-Compete in Rescission Action for Employee Equity Grants
By Marcus Mintz
A New York Supreme Court recently affirmed the viability of the “employee choice doctrine” in a rescission action involving employee equity grants. See Lenel Systems Int’l., Inc. v. Smith, 106 A.D. 3d 1536, 966 N.Y.S.2d 618 (N.Y. App. Div. 2013). The “employee choice doctrine” arises when an employee has a choice between complying with post-employment obligations, …
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Recent Alleged Cyberattack By Ex-Employee Demonstrates Importance of Employer Diligence On Protecting Network Passwords
By Robert Milligan and Grace Chuchla
A recently unsealed criminal complaint out of the Eastern District of New York raises allegations that paint a frightening picture for employers of the havoc that disgruntled ex-employees can wreak on company computer networks.
The prosecution alleges that a former employee of an unnamed company that manufactures high-voltage power supplies in Suffolk County, New…
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The Computer Fraud and Abuse Act and Disloyal Employees: A Narrow Bridge To Nowhere?
By Gary Glaser and Jacob Oslick
An old folk melody describes the world as “a very narrow bridge,” where one misstep can bring disaster. The song seeks to inspire, calling on people to have “no fear at all” while crossing through life’s perils.
However inspiring this song might be, some metaphorical bridges just aren’t worth crossing. Trying to assert Computer…
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