AQuate II, LLC v. Jessica Tedrick Myers and Kituwah Global Gov’t Group, LLC, is, as all parties put it, about “an archetypical trade secrets claim,” but with a couple of twists: sovereign immunity and an agreement to resolve disputes in a forum that allegedly does not exist. See Aquate II
Trade Secrets
Battery Technology Trade Secret Theft Runs Out of Juice
A recent complaint alleging trade secret misappropriation in the Eastern District of New York demonstrates the importance of combing an alleged trade secret misappropriator’s social media for subtle – and not-so-subtle – evidence of their wrongdoing.
The United States has charged Klaus Pflugbeil and Yilong Shao with conspiring to convey…
Federal Trade Commission Approves Final Rule Banning Most Noncompetes
On April 23, 2024, the Federal Trade Commission (“FTC”) voted 3-2 to issue a proposed final rule (“Final Rule”), which, absent a successful legal challenge, will ban most noncompete agreements in the United States.
Despite more than 26,000 comments from the public, the Final Rule does not narrow the rule…
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…
Court Finds Access to Botox Trade Secrets and Similarity of Competitor Product Supported Inference of Trade Secrets Misappropriation
Proving access to and use of trade secrets are core elements in a trade secrets misappropriation case. Recent rulings in a trade secrets action filed by Allergan against its competitor Revance Therapeutics (“Revance”) provide helpful guidance on what is sufficient to plead these elements. There, the court explained what facts are—and…
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.
Trade Secret Wars Continue With Tech Companies Battling For Talent
In an era where trade secret misappropriation battles can shape corporate landscapes, the Apple v. Rivos case stands as a stark reminder of the importance of diligent onboarding practices when it comes to trade secrets. In this case, the court’s scrutiny of employee conduct underscores a crucial lesson: companies should…