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As the law’s first anniversary approaches, federal courts continue to adjudicate claims arising under the Defend Trade Secrets Act (“DTSA”).  Enacted on May 11, 2016, DTSA provides the first private federal cause of action for trade secret misappropriation, allowing parties to sue in federal court for trade secret misappropriation.  Although the law is in its

Trade secret misappropriation cases turn on details. A recent Indiana misappropriation of trade secrets case turned on a contractual clause requiring the return of all company property and confidential information at termination.
Continue Reading Contractual Clause Requiring Return Of Confidential Information At Termination Helps Former Employer Obtain Injunction On Misappropriation Claim

A new study of federal court trade secret litigation published in the Gonzaga Law Review on March 17, 2010 confirms that the number of lawsuits involving alleged trade secret misappropriation continues to grow exponentially.
Continue Reading Just the Stats Please! New Study Provides Statistical Snapshot of Federal Court Trade Secret Litigation

Although issues involving misappropriation of trade secrets are frequently litigated, they rarely result in criminal charges. However, according to recent stories in The Chicago Tribune, Reuters.com, and other media outlets, a former employee of Goldman Sachs was recently arrested by the FBI for allegedly stealing trade secrets (software code regarding a proprietary trading system) worth millions of dollars.
Continue Reading Alleged Trade Secret Theft Results in Federal Criminal Charge

The Economic Espionage Act (“EEA”), 18 U.S.C. §§ 1831-39, gives companies another tool in the fight against misappropriation of trade secrets to “adopt a national scheme to protect U.S. proprietary economic information” and to combat the rising tide of espionage against and threats to corporate trade secrets. It criminalizes misappropriation of trade secrets.
Continue Reading A TOOL FOR FIGHTING ECONOMIC ESPIONAGE: Federal Law Criminalizes Misappropriation of Trade Secrets

Many New York attorneys, when seeking a preliminary injunction against a party that has misappropriated their clients’ trade secrets, will argue that a presumption of irreparable harm to their clients automatically arises upon the determination that a trade secret has been misappropriated. A recent decision of the U.S. Court of Appeals for the Second Circuit, however, holds that misappropriation of trade secrets does not automatically lead to irreparable harm. The aggrieved party only faces irreparable harm if the misappropriator will disseminate the secrets to a wider audience or otherwise irreparably impair the value of the secrets.
Continue Reading Second Circuit Vacates Injunction and Refines Analysis of Whether Irreparable Harm May be Found When Trade Secrets Have Been Misappropriated