Trade Secrets

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On May 31, 2023, a Harris County Texas District Court jury found a telecom company acted in bad faith by filing a $23 million trade secret misappropriation lawsuit against a rival where the underlying technology was found to not actually be a trade secret.

Background & Analysis

In February 2019, Telecom firm Teligistics, Inc. (“Teligistics”) sued its rival Advanced Personal Computing, Inc. d/b/a Liquid Networx (“Liquid Networx”) and company executives Travis Wood and Robert Short, alleging they misappropriated trade secrets concerning its online platform for handling contracts named Telibid. Specifically, Teligistics alleged a former Liquid Networx employee obtained a copy of Teligistic’s internal Request for Proposal (“RFP”) in order to “tweak” Liquid Networx’s internal RFP, rather than spending time and resources developing their own RFP. Continue Reading Not All Documents Labeled Confidential Actually Are: Texas Jury Finds $23M Trade Secret Case Was Brought in Bad Faith

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In Seyfarth’s third installment in the 2023 Trade Secrets Webinar Series providing valuable insights into navigating this evolving landscape, Seyfarth attorneys covered a range of topics, including the latest technology threats, the importance of communication and training, revisiting confidentiality policies, alternative trade secret protections, and updating restrictive covenant agreements. Here are the key takeaways from the Seyfarth webinar:

  1. Staying Informed
… Continue Reading Webinar Recap! Managing Trade Secrets in a Remote Work Environment
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Establishing jurisdiction over a defendant is critical in every lawsuit. Trade secret cases are certainly no different.  A recent appellate decision from Texas underscored this important point by dismissing a plaintiff’s claim against a defendant – who did not even deny that he received misappropriated trade secrets – for lack of jurisdiction.

The case is Joe Formicola v. Virtual Integrated…

Continue Reading Texas Court of Appeals Dismisses Trade Secret Case Against Defendant for Lack of Personal Jurisdictional
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Wednesday, July 19, 2023
3:00 p.m. to 4:00 p.m. Eastern
2:00 p.m. to 3:00 p.m. Central
1:00 p.m. to 2:00 p.m. Mountain
12:00 p.m. to 1:00 p.m. Pacific

REGISTER HERE

Confidentiality obligations and restrictive covenants are crucial tools employed by organizations to protect sensitive information, trade secrets, and competitive advantages. However, recent state law and regulatory developments and NLRB decisions…

Continue Reading Upcoming Webinar! NLRB and Restrictive Covenants: Trends in Employment Confidentiality
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On May 25, 2023, the Second Circuit issued an opinion in Syntel Sterling Best Shores Mauritius Ltd. v. TriZetto Group, Inc., No. 21-1370 (2d Cir. 2023) that provides guidance regarding recoverable damages in trade secret misappropriation disputes under the Defend Trade Secrets Act (“DTSA”).

The Second Circuit held that under the DTSA unjust enrichment damages cannot be awarded for…

Continue Reading Second Circuit Vacates Jury Award on Grounds that Damages Theory Lacked Evidence
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Following the recent passage through the New York State Senate, on June 20, 2023, the New York State Assembly voted to approve a bill, which, if enacted, would ban all post-employment non-compete agreements. We previously reported on the key features of Senate Bill S3100A here. Assembly Bill A1278 is now headed to Governor Hochul’s desk for review, and she…

Continue Reading New York Update: Bill Banning Non-Competes Passes State Assembly and Awaits Signature by Governor Hochul
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Wednesday, June 21, 2023
3:00 p.m. to 4:00 p.m. Eastern
2:00 p.m. to 3:00 p.m. Central
1:00 p.m. to 2:00 p.m. Mountain
12:00 p.m. to 1:00 p.m. Pacific

REGISTER HERE

In today’s digital age, trade secrets are an essential asset for businesses to stay ahead of the competition. As businesses continue to operate remotely, protecting trade secrets has become increasingly…

Continue Reading Upcoming Webinar! Managing Trade Secrets in a Remote Work Environment
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The FTC is not alone in taking aim at non-competes. Yesterday, the NLRB’s General Counsel Jennifer Abruzzo issued a memo to all regional directors, officers-in-charge, and resident officers at the NLRB stating that non-competes in employment agreements and severance agreements violate the National Labor Relations Act except in rare circumstances. Specifically, Ms. Abruzzo claims that such covenants interfere with workers’…

Continue Reading The NLRB Joins the Fray: Another Attack on Non-Competes
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Recently, Seyfarth Partner Jesse Coleman had the opportunity to present an American Intellectual Property Law Association (“AIPLA”) webinar titled “Working with Experts and Recent Developments in Trade Secrets Damages.” Together with Brent Bersin of FTI Consulting and Attorneys Lawrence Pockers and Jennifer Kenedy, the webinar shed light on the intricacies of trade secrets damages and provided valuable insights into the…

Continue Reading Working with Experts and Recent Developments in Trade Secrets Damages: Jesse Coleman Shares Key Takeaways from AIPLA Webinar
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The UK government has announced that it will bring in legislation to restrict the post-employment non-compete restraints to three months. This is a significant proposal as currently non-compete restrictions in the UK are generally capable of being enforced for a period up to 12 months (if they are “no more restrictive than is reasonably necessary to protect the employer’s legitimate…

Continue Reading UK Government Moves to Limit Non-Competes