misappropriation

Subscribe to misappropriation

A California Superior Court Judge in Orange County granted an attorneys’ fees award in the amount of $5.8 million to defendant Landmark Event Staffing Services, Inc. (“Landmark”) in Contemporary Services Corporation v. Landmark Event Staffing Services, Inc., Case No. 30-2009-00123939. This ruling reinforces the importance of carefully calibrating litigation strategy in trade secrets misappropriation cases to focus on vindicating legally protectable interests. Trade secrets litigation should not be used merely as an aggressive tactic to stifle a competitor.
…
Continue Reading Superior Court of California Attorneys’ Fees Award Punishes Plaintiff’s Bad-Faith Litigation for Alleged Misappropriation of Trade Secrets

With the law’s first anniversary in the rear view mirror, defendants have established a viable defense to claims arising under the Defend Trade Secrets Act (“DTSA”) – a plaintiff may be precluded from bringing a claim under DTSA if it only alleges facts that show acts of misappropriation occurring prior to May 11, 2016 (the date of DTSA’s enactment).   In the last few months, four different courts have tackled this “timing defense,” and defendants raising it in motions to dismiss DTSA claims have encountered mixed results.

In Brand Energy & Infrastructure Servs. v. Irex Contr. Grp., No. 16-cv-2499,…
Continue Reading Defendants’ Timing Defense to DTSA Claims Faces Mixed Results

shapiro

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 infancy, employers and legal practitioners filing complaints that assert DTSA claims must nevertheless adhere to longstanding rules of pleading set forth by the Supreme Court and the Federal Rules of Civil Procedure (“FRCP”).  Two recent decisions address this fundamental concept and serve as reminders that…
Continue Reading Recent Federal Decisions Confirm That DTSA Claims Must Follow Longstanding Pleading Standards

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

While there is no magic wand that will prevent a theft or stop a thief in his tracks, a company can substantially lower the risk of trade secret misappropriation through proactive policies and procedures.
Continue Reading Preventing The Misappropriation Of Trade Secrets Through Proactive Policies And Procedures

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