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In the Third Circuit, common law generally governs the use of restrictive covenants. States in this Circuit employ a reasonability standard to determine whether a restrictive covenant is enforceable. In New Jersey, even if a covenant is found to be reasonable, it may be limited in its application by: geographical area, period of enforceability or

In an aggressive first move, Plaintiffs – two former employees accused of trade secret misappropriation – filed a preemptive suit for declaratory relief and unfair business practices against their former employer, Defendant Chandler Holding’s, Inc., in California Superior Court. Plaintiffs contend that shortly after their resignations from Chandler Holdings, Inc., they received letters from Defendant’s

StubHub, an online ticket exchange company, successfully defeated a suit brought by start-up company Calendar Research LLC. Calendar had alleged that three of its former employees used proprietary data in developing applications for StubHub. In its suit, Calendar Research alleged that the former employees downloaded proprietary information that belonged to the startup that they didn’t

On June 14, 2018, six former and current Fitbit employees were indicted in the Northern District of California for alleged federal trade secrets offenses. The individuals are accused of either stealing market research regarding fitness tracker opportunities from Jawbone, or stealing internal studies – including a comparison study of consumer behavior in which consumers wore

On November 2, 2017, Foltz Welding LTD filed a motion for preliminary injunction against its former employee and operations manager in the United Stated District Court Southern District of Illinois. The company filed a nine-count complaint against its former employee and requested injunctive relief and damages. Foltz Welding claimed that the former employee may have

On January 11, 2018, the Federal Circuit issued a game-changing decision that addressed the pitfalls of an entity’s attempt to secure the ownership of intellectual property rights through an employment agreement. The Court held that three different provisions that the employer argued effected an assignment of intellectual property rights were not sufficient to convey those