Trade Secrets Trends

Trade Secrets Trends

Analysis and commentary on the latest developments in trade secrets protection, disputes, and enforcement

Mark Klapow

Mark Klapow Mark A. Klapow helps clients address their most important legal challenges through a strategic, multi-disciplinary approach that is results-oriented while also focused on service and efficiency. From litigating complex commercial cases to managing teams in broad counseling relationships, Mark helps map out strategies and predict outcomes so clients can determine the best course of action given their business objectives.

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Trump Administration’s Focus on IP Webinar

Posted in Defend Trade Secrets Act (DTSA), Event, Legislation & Policy
The America Invents Act, the Defend Trade Secrets Act, and recent Court decisions demonstrate the ongoing changes affecting intellectual property. The new Trump administration is expected to continue this trend from the legislative perspective, and is expected that Congress will consider further legislation that may rival the size of the America Invents Act. At the… Continue Reading

4 Key Takeaways: What the New Federal Trade Secrets Law Means for Your Clients (June 15 Webinar)

Posted in Legislation & Policy, Non-Competes
On June 15, Crowell & Moring hosted a trade secrets webinar, “What the New Federal Trade Secrets Law Means for Your Clients.” The panelists, Mark Klapow, Mark Romeo, Mike Songer, and Vince Galluzzo provided an overview Defend Trade Secrets Act (DTSA), signed by President Obama in May. The panelists also discussed how the courts are… Continue Reading

DTSA Update: Alphabet and Google Accused of Misappropriation of Trade Secrets Under The DTSA

Posted in U.S. Litigation
In the highest-profile case filed to date under the recently enacted Defend Trade Secrets Act, Space Data has accused Alphabet and Google of misappropriation of trade secrets in the launch of their balloon-based wireless network code named Project Loon, in a complaint filed in the U.S. District Court for the Northern District of California. Space… Continue Reading

Recent Case Highlights Circuit Split on Important Computer Fraud and Abuse Act Question

Posted in Legislation & Policy
Another court has rejected the broader interpretation of the Computer Fraud and Abuse Act (“CFAA” or “the Act”) as applying to employees who exceed their authorized use.  A recent decision in Minnesota highlights the issue of whether the Act imposes civil liability on employees who have permission to access their employers’ data, but do so… Continue Reading

Federal Circuit Denies Rehearing En Banc on Question of ITC’s Jurisdiction Over Extraterritorial Trade Secret Misappropriation

Posted in U.S. Litigation
On Tuesday, the Federal Circuit decided, without opinion, not to take another look at the extraterritorial reach of Section 337 trade secret actions. As we reported in an earlier post, the ITC had issued an exclusion order against Chinese firm Sino Legend from importing tire resins based on misappropriated technology. Sino Legend appealed to the… Continue Reading

Court Enters World-Wide Permanent Injunction After $940 Million Jury Verdict

Posted in Cyberhacking, U.S. Litigation
Less than two weeks after Indian outsourcing giant Tata Consultancy Services got hit with a $940 million jury verdict, U.S. District Court Judge William Conley of the Western District of Wisconsin has now entered a world-wide permanent injunction against Tata. The jury award and injunctive relief are due to the Court and jury finding that… Continue Reading

House Finally Passes Federal Trade Secrets Law; Next Step is Obama’s Promised Signature

Posted in Legislation & Policy
As we have noted over the past several months, trade secrets will finally obtain additional protection under federal law. Yesterday, April 27, 2016, the House of Representatives passed the Defend Trade Secrets Act of 2016, S. 1890, without amendment. The bipartisan bill passed with a vote of 410-2, sending the bill to the White House… Continue Reading

Federal Trade Secrets Bill Headed to House Vote Wednesday

Posted in Data Protection, Legislation & Policy, U.S. Litigation
A federal civil cause of action for trade secrets misappropriation appears to be quickly becoming reality. Following the lead of the Senate, on Wednesday, April 20, the U.S. House Judiciary Committee approved the Defend Trade Secrets Act of 2015, S. 1890, without amendment. The bipartisan bill will now head to the full House of Representatives… Continue Reading

Federal Circuit to Decide if Rehearing En Banc Warranted in Section 337 Action Involving Extraterritorial Trade Secret Misappropriation

Posted in U.S. Litigation
The United States International Trade Commission argued that the Federal Circuit should deny rehearing en banc in a case involving trade secret misappropriation occurring overseas last week. At the ITC, SI Group, a Schenectady, NY company, accused Sino Legend, a Chinese firm, of misappropriating trade secrets related to SI’s process for making tackifier resins to… Continue Reading

$940 Million Jury Verdict in Trade Secret Case, for Now

Posted in Cyberhacking, U.S. Litigation
In an eye popping damages award that appears destined for review, a Wisconsin jury returned a verdict of $940 million against Tata Consultancy Services in a case trade secret misappropriation case brought by competitor Epic Systems. Indian outsourcing behemoth Tata was sued by Epic Systems, a privately held Wisconsin-based medical software company in Wisconsin federal… Continue Reading

Senate Unanimously Votes to Create Federal Civil Action for Trade Secrets Misappropriation

Posted in Data Protection, Legislation & Policy, U.S. Litigation
On Monday April 4, after remarks from the bill’s sponsors Orrin Hatch (R) Utah and Christopher Coons (D) Delaware, the Senate voted 87-0 in favor of the Defend Trade Secrets Act of 2015, S. 1890. As we have previously reported, the Act will create a federal civil cause of action for trade secrets misappropriation, which… Continue Reading

Countersuit for Trade Secret Misappropriation Impermissible in the Face of FCA Claim Based on Trade Secret, New Jersey Appeals Court Holds

Posted in U.S. Litigation
Last week the Appellate Division of the Superior Court of New Jersey dismissed a lawsuit brought by pipe-maker JM Manufacturing Co. Inc. against former JM quality assurance engineer John Hendrix and his counsel. JM had accused Hendrix and his counsel of improperly using stolen trade secrets documents and other confidential information to launch a False… Continue Reading

DuPont, Corning, and Others Speak Out in Support of Defend Trade Secrets Act at Senate Judiciary Committee Hearing

Posted in Data Protection, Legislation & Policy, U.S. Litigation
On Wednesday November 2, the Senate Judiciary Committee held a hearing on the pending Defend Trade Secrets Act of 2015, S. 1890. We have previously reported on the Act, which will create a federal civil cause of action for trade secret misappropriation, which includes an ex parte seizure provision. The hearing began with Chairman Grassley… Continue Reading

U.S. and China Agree on Joint Efforts Against Theft of Corporate IP

Posted in Cyberhacking, Data Protection
  This past Friday, President Barack Obama and Chinese President Xi Jinping announced that the United States and China had reached a “common understanding” to fight state-sponsored, corporate cyber espionage between the countries. During a joint press conference, President Obama said that “neither the U.S. nor the Chinese government will conduct or knowingly support cyber… Continue Reading

The Growing Momentum for Federal Trade Secrets Legislation

Posted in Legislation & Policy
The momentum for federal trade secrets legislation appears to be growing with last week’s introduction of the “Defend Trade Secrets Act of 2015” in both chambers of Congress. The bill, H.R. 3326 in the House and S. 1890 in the Senate, would create a uniform federal civil action for trade secret misappropriation, which is currently litigated exclusively… Continue Reading

Value is in the Eye of the Court: Eighth Circuit Affirms Macquarie Bank’s Misappropriation of Trade Secrets, Resolving Longstanding Dispute

Posted in U.S. Litigation
Banks; oil and gas leases; trade secrets. All three came to a front in a longstanding legal battle that culminated in a decision by the Eight Circuit Court of Appeals on Friday July 17, 2015, affirming that a bank had misappropriated an energy company’s trade secrets. The Court of Appeals upheld a decision from the U.S.… Continue Reading

Federal Non Compete Law?

Posted in Legislation & Policy
Earlier this month four Senators proposed a federal law to prohibit the use of covenants not compete against so-called “low wage employees.”  The Mobility and Opportunity for Vulnerable Employees Act (MOVE Act) would seemingly be the first federal law related to non competes, which have traditionally been creatures of state law. The MOVE Act covers… Continue Reading

ITC Excludes Chinese Company for 10-Years for Trade Secrets Misappropriation

Posted in Asia, U.S. Litigation
The International Trade Commission (ITC) issued a Limited Exclusion Order (LEO) excluding imported crawler cranes from Chinese manufacturer Sany Heavy Industry Co that were designed and manufactured using the misappropriated trade secrets and patented inventions of Manitowoc Cranes. The Commission’s final determination in the In Re Certain Crawler Cranes and Components Thereof investigation (Inv. No.… Continue Reading

Chair of Temple University’s Physics Dept. Indicted for Providing U.S. High Tech to China

Posted in Asia, Criminal Prosecution
The chair of Temple University’s physics department has been indicted for allegedly providing U.S. technology to China. Dr. Xioaxing Xi, a U.S. citizen and native of China, is an expert in the field of magnesium diboride thin film superconducting technology. According to the indictment, Xi was involved in a scheme over many years to funnel… Continue Reading