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The FBI on Economic Espionage
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 the ever-evolving landscape of intellectual property law, trade secrets have emerged as a crucial area of focus, particularly in light of recent uncertainties as to the enforceability of non-competes. Since August 2023,...more
The ongoing battle between DraftKings Inc. and its former executive, Michael Hermalyn, remains contentious, with the District of Massachusetts’ decision to enforce Hermalyn’s non-compete now appealed and argued to the First...more
On April 23, the Federal Trade Commission (FTC) issued a final rule that would ban the use of noncompete agreements in most employment contracts nationwide. Hailed by the Commission as a measure to promote competition,...more
The 2016 enactment of the Defend Trade Secrets Act (“DTSA”) has led to an increase in trade secret litigation. The DTSA codified into federal law the right of an owner of a trade secret to sue in federal court when its trade...more
Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more
Restrictive covenant and trade secret litigation is on the rise, and it typically involves an extremely public dispute that can require you to expend significant resources without any certainty of a favorable outcome....more
The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more
Q: We have a recently terminated employee who has been posting a lot of social media messages indicating she is going to reveal “secrets” about the company. She worked in an area that was highly confidential with employee...more
Most companies rely heavily on contractual obligations to protect their trade secrets. Employee and vendor agreements typically include non-disclosure provisions. Depending on the state and the nature of an employee’s...more
Among its most valuable assets are a company’s trade secrets, staff and customers. But protecting these can be much more difficult than protecting equipment or inventory. With the right agreements and precautions, a company...more
When trade secret lawyers advise executives transitioning to a job with a competitor, they typically tell them to “take nothing with you” on the way out – meaning that no confidential, proprietary or trade secret information...more
California is notorious in the non-compete world for its prohibition and extreme scrutiny of individual non-compete and other types of restrictive covenant agreements. These types of agreements between two businesses,...more
The “return to normal” in courts across the country has brought with it a flurry of trade secrets decisions that address some interesting and instructive issues, both procedurally and substantively....more
A New London Connecticut Superior Court jury awarded an $839,423 verdict in November 2019, involving theft of trade secrets for a $70 million U.S. Navy underwater drone project. This case, LBI, Inc. v. Sparks, et al.,...more
Picture this: Your company is in a highly competitive industry with several leading players heavily supported by major corporate investors and/or venture capital funds. The market is expected to generate potentially hundreds...more
At one time or another, we’ve all been faced with that question. A friend or family member asks if you can keep a secret. A really good secret. Of course I can. I can be trusted. And then you hear the secret. It is in fact a...more
Days ago, engineer Anthony Levandowski was indicted on criminal charges accusing him of stealing information from Google-owned Waymo and taking it to Uber. While the indictment alleges he downloaded 14,000 documents...more
Addressing a bench trial decision concerning a former employee’s retention of confidential information and violation of a non-compete provision, the US Court of Appeals for the Fourth Circuit found no abandonment of the...more
The Vermont Legislature kicked off 2019 with bill H.1, seeking to ban non-competes in the Green Mountain State. The new bill has been filed by Martin LaLonde, who promulgated an identical bill last January. ...more
Problem: A key member of the design team for your start-up company's upcoming product launch has just quit in a huff over compensation. He (or she) threatens to go to your primary competitor and share everything they know...more
Medidata brought suit against its competitor, Veeva, alleging that Medidata’s former employees, who eventually left the company to work for Veeva, violated their employment agreements which required them to protect Medidata’s...more
California has long led the nation in its disdain for noncompetition agreements. Pressed by venture capitalists who believe that this gives California an advantage over other states, the Massachusetts legislature has finally...more
A recent report from Lex Machina, an IP litigation research company, shows that the United States District Court for the Central District of California had more trade secret lawsuits in the last decade than any other district...more
New Massachusetts laws govern the protection of trade secrets and the enforceability of noncompete agreements. Massachusetts Gov. Charlie Baker recently signed into law the state's version of the Uniform Trade Secrets Act...more