In an important clarification of federal trade secret litigation, the Ninth Circuit in Quintara Biosciences, Inc. v. Ruifeng Biztech, Inc. recently rejected the argument that a plaintiff suing under the federal law (DTSA)...more
In 2016, the Defend Trade Secret Act, 18 U.S.C. § 1836 (the “DTSA”), passed Congress and went into effect. At its heart, it effectively codified the Uniform Trade Secrets Act at the federal level, creating a federal cause of...more
In today’s highly competitive business environment, it is crucial for a company to safeguard its intellectual property to maintain a competitive edge and ensure long-term success. But what is the best way to do that? ...more
Before closing the book on 2022, we look back at the most significant verdicts issued in trade secret trials this past year. In 2022, several juries awarded extraordinary verdicts to plaintiffs. These verdicts suggest a...more
The recent decision by the U.S. Court of Appeals, Sixth Circuit, Caudill Seed & Warehouse Co. v. Jarrow Formulas, Inc., illustrates the flexible approach taken by courts when considering the calculation of compensatory...more
Discovery Rule under UTSA New Technology Products v. Scotts Miracle-Gro., 3d Dist. Union No. 2022-Ohio-3780. In this appeal, the Third Appellate District affirmed the trial court’s decision to grant summary judgment to...more
Should a defendant found liable for stealing trade secrets have to fork over all of the research and development costs it theoretically avoided by misappropriating the secrets? Yes, according to the “avoided costs” theory of...more
While preliminary injunctions are not uncommon in trade secrets misappropriation cases, a recent Fifth Circuit decision highlighted the importance that the movant put forth colorable evidence of misappropriator “use” of the...more
Trade secret litigation presents a variety of procedural and practical complexities at every stage of the proceeding. One of the most important—yet often overlooked—issues in these cases can be summarized by the following...more
For most (if not all) professional services firms, client databases, client contact lists, and information reflecting client preferences are regarded by such firms as trade secrets that are essential to the business. ...more
With the dramatic increase in trade secret cases since the 2016 passage of the Defend Trade Secrets Act (DTSA), and the large damages awards in many of these cases, it is now more crucial than ever to properly understand how...more
The US Court of Appeals for the Ninth Circuit affirmed a dismissal of trade secret claims, finding that although misappropriation of a trade secret prior to the enactment of the Defend Trade Secrets Act (DTSA) does not...more
Trade secrets and other proprietary information can be among a business’ most valuable assets and drive its competitive advantage. It is therefore ordinarily critical that employees be bound by an enforceable agreement that...more
On October 29, 2020, United States District Court Judge Denise J. Casper rejected the argument that the Massachusetts Uniform Trade Secret Act (MUTSA) preempts, and therefore bars, state law claims for misuse of confidential...more
In Payward, Inc. v. Runyon, Case No. 20-cv-02130-MMC, the United States District Court for the Northern District of California granted a Rule 12(b)(6) motion, ruling that information alleged to be “secret” failed to qualify...more
Why should companies considering trade secret litigation consider their patent portfolios? After all, trade secrets, by definition, are secret. They have value in the marketplace by virtue of not being disclosed. And like the...more
Last week, we examined the recent Third Circuit decision in Advanced Fluid Systems, which held that a trade secrets plaintiff did not need to be an owner or a licensee of the alleged trade secrets to bring a state law...more
It is not often that a United States Court of Appeals issues a decision on trade secrets, much less one involving the review of a bench trial that drew legal conclusions on the scope of trade secret law and the propriety of...more
Trade secret litigation in California is growing, in both volume and impact. The second-largest plaintiffs’ verdict in 2019 was $845 million, as reported by the Daily Journal, which was awarded to ASML, a Dutch semiconductor...more
Courts have long lamented that “computing damages in a trade secret case is not cut and dry,” Am. Sales Corp. v. Adventure Travel, Inc., 862 F. Supp. 1476, 1479 (E.D. Va. 1994), meaning that “every [trade secret] case...more
Recently, the Eighth Circuit Court of Appeals considered the three-year statute of limitations provisions of the Defend Trade Secret Act (DTSA) and Iowa Trade Secrets Act (UTSA). In the underlying district court action, CMI...more
Can a debtor discharge a debt arising out of a deliberate or intentional act that causes injury to you? A recent article addressed the general issue of discharging debts in bankruptcy and various grounds for excepting...more
In In re Muhs, the United States Court of Appeals for the Fourth Circuit was called upon to decide whether “the meaning of ‘willful and malicious’ under Alaska law is identical to the meaning of ‘willful and malicious’ under...more
The California Uniform Trade Secrets Act (CUTSA) provides various remedies for misappropriation of a trade secret (as defined). The legislature, however, was "vexingly oblique" in prescribing the effect of CUTSA on common law...more
The District of Rhode Island answered an interesting question recently: which jurisdiction's law should define the duty of confidentiality owed to an employee's Italian-based former employer? Here, the plaintiff asserted...more