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
By Alyson Tocicki & Baldassare Vinti on
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
By David Gobel & Steven J. Pearlman on
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
By L.D. Jones & Steven J. Pearlman on
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
By Edward Wang & Baldassare Vinti on
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…
Court Rules that Patient List and Related Medical Practice Information Qualify as Trade Secrets
By Margaret Ukwu & Baldassare Vinti on
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…
Four Key Takeaways from the FTC Director’s Remarks on the Proposed Rule to Ban Non-Compete Agreements
On January 11, 2023, Elizabeth Wilkins, the FTC’s Director of the Office of Policy Planning, spoke to the Capitol Forum about the FTC’s proposed rule to ban non-compete agreements. This conversation was the most significant discussion of the proposed rule by the FTC since it was announced on January…
Federal Trade Commission Proposes Sweeping Ban on Non-Compete Clauses
By Steven Hurd & Scott Tan on
On January 5, 2023, the Federal Trade Commission (“FTC”) proposed an expansive new rule which would impose a near-complete ban on the use of non-competes (the “Proposed Rule”) by employers. The Proposed Rule is the culmination of the FTC’s recent efforts, following President Biden’s July 9, 2021 Executive Order on…
Failing To Take Proper Precautions, Hooked Media Lets Trade Secret Misappropriation Claim Off the Hook
By Russell T. Gorkin on
Late last year, a California appellate court reaffirmed longstanding principles that have important lessons for employers hoping to prevent their employees from taking trade secrets with them if they leave to work for a competitor.
In Hooked Media Group, Inc. v. Apple Inc., Hooked Media Group, Inc. (“HMGI”), a…