Continuing our series on electric vehicle (EV) trade secret litigation, see here and here, a California judge has tentatively given Tesla the green light to proceed with a trial against rival Rivian in March of 2025. This will pit two major players in the EV industry head-to-head in a
Litigation
The Critical Role of Trade Secrets in the Booming EV Industry
Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% increase in one year. The rise in demand for electric vehicles (“EVs”) has prompted many companies to enter the EV battery space. Given the rapid development of, and technological advances required to, create new EVs, innovators…
Plead Your Case, Not Your Secrets: A Discussion of Recent Trade Secret Complaints
Taking legal action to protect a trade secret is unlike other intellectual property litigation since what you’re trying to protect is a secret. Plaintiffs must navigate a fine line between pleading their complaint with enough specificity to put the Defendant on notice of what they allegedly misappropriated, but not too much to diminish the value of the secret. Several recent decisions indicate how to strike this balance.
Arbitrator Awards Company $155M for Competitor’s Use of Its Confidential Information
An American Arbitration Association arbitrator recently awarded Black Knight, Inc. (BK) $155M stemming from Pennymac Loan Services, LLC’s (Pennymac) alleged use of its mortgage-loan servicing platform to develop its own competing product. Though the arbitrator did not find Pennymac liable for trade secret misappropriation, they found that the use of…
CA Federal Court Awards Biomedical Companies $62M Following Jury Trial Involving Confidentiality-Related Claims
On November 1, 2023, a jury in the U.S. District Court for the Central District of California awarded damages to Skye Orthobiologics, LLC (“Skye”) and Human Regenerative Technologies, LLC (“HRT”) for breach of contract, breach of fiduciary duty, and breach of duty of loyalty by Skye’s former employee (“Defendant”). While…
First Circuit: “Difficult to Compile” but Publicly Available Facts Can Be Trade Secrets
On August 29, 2023, the First Circuit affirmed a ruling from the United States District Court for the District of Massachusetts that Allstate Insurance agents misappropriated trade secrets when they retained spreadsheets that contained confidential information. Allstate Ins. Co. v. Fougere, 79 F.4th 172 (1st Cir. 2023). Significantly, the First Circuit rejected the argument that the spreadsheets could not be trade secrets because most of the information within them is publicly available.
N.J. District Court Denies Bid for TRO for Failure to Identify Trade Secrets, But Still Allows Case to Proceed
On November 9, 2023, in Ho-Ho-Kus, Inc. v. Sucharski, No. 2:23-cv-01677, the United States District Court for the District of New Jersey found that Ho-Ho-Kus, Inc. (“HHK”) failed to show a trade secret existed with adequate specificity to justify granting a TRO or a preliminary injunction, but nevertheless denied a motion to dismiss arguing that the company failed to sufficiently plead the existence of a trade secret.
Court Rules that Patient List and Related Medical Practice Information Qualify as Trade Secrets
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 secret had been misappropriated. Prior to the DTSA…
Trade Secret and Fiduciary Claims Against Former CEOs of Biotech Company Survive Motion to Dismiss
On December 1, 2023, in Global Discovery Biosciences Corp. v. Harrington, et al., No. 2022-1132, a Vice Chancellor of the Delaware Court of Chancery ruled on the balance of a motion to dismiss brought back in June 2023 by two former CEOs-Dr. Harrington and Mr. Nuñez (together, “Defendants”)-who were…