In an opinion first issued in June 2020 and modified in October 2020, the Fifth Court of Appeals in Texas granted summary judgment in a trade secret dispute based on plaintiff’s failure to present any facts that defendants had access or exposure to plaintiff’s claimed trade secrets.  Josh Malone designed a device that fills and seals water balloons.  Kendall Harter did the same.  Mr. Malone filed a patent.  Mr. Harter accused Mr. Malone of stealing his water balloon filling design.  According to Mr. Harter and KBIDC Investments, the company that acquired Mr. Harter’s company, Mr. Malone came up with his patented product by stealing the trade secrets belonging to Mr. Harter and then KBIDC Investments.  So, KBDIC Investments sued Mr. Malone and Zuru Toys, which acquired an interest in Mr. Malone’s “Bunch O’ Balloons” product for trade secret misappropriation.
Continue Reading Bunch O’ Balloons Trade Secret Dispute Results in Bunch O’ Appeals

Tips for European employers on how to protect company trade secrets.

7 to 12 years. According to an Organisation for Economic Co-operation and Development study, this is the average amount of time spent by an employee with any one European Union employer. However, in some countries, regions and sectors, employees move around more frequently than this, and the current COVID-19 pandemic will also have had an impact on these numbers.

In any event, if one of your employees leaves, you do not want your company’s trade secrets and other confidential information to leave with them.


Continue Reading Employees may come and go. But will your trade secrets follow them?

On March 13, 2021, borrowing from California Code of Civil Procedure § 2019.210 (which requires a plaintiff to “identify. . . trade secret[s] with reasonable particularity” before it can obtain discovery on those trade secrets), a Northern District of California judge narrowed trade secret claims asserted under the Defend Trade Secrets Act (“DTSA”) due to the plaintiff’s failure to specifically identify most of its asserted trade secrets prior to discovery.  Although not an explicit requirement under federal law, the Court reasoned that the disclosure requirement served to prevent plaintiffs from getting discovery and then using that discovery to “cleverly specify whatever happens to be there as having been trade secrets stolen from plaintiff.”  The decision could be significant for trade secret litigants going forward.

Continue Reading Federal Court Imports California Trade Secret Disclosure Rule and Narrows DTSA Claim

What does it take to sufficiently plead trade secret claims under the New Jersey Trade Secrets Act?

In Lard-Vid, LLC and Visual Image Display UK, Ltd. v. Ground Support Labs LLC et al., 2021 N.J. Super. Unpub. LEXIS 323, at *15 (N.J. Sup. Ct. Feb. 26, 2021), the Court addressed exactly this issue and dismissed plaintiffs’ trade secret claims for failure to allege facts sufficient to satisfy the elements of the New Jersey Trade Secrets Act.


Continue Reading New Jersey Superior Court Tosses Trade Secret Claims for Failure to Plead with Sufficient Specificity Under New Jersey Trade Secrets Act

Since its passage in 2016, the Defend Trade Secrets Act (“DTSA”) has become a powerful tool for litigants seeking civil redress for the misappropriation of trade secrets to get into federal court.  The DTSA is particularly important because it allows litigants to seek redress for misappropriation that happens outside of the United States – overcoming the general presumption that federal law does not have an extraterritorial reach.  We recently discussed the significance of the DTSA’s application across the globe and how to effectively achieve quick recourse.

Continue Reading The Sedona Conference Publishes An Analysis of How to Seek Global Redress of Trade Secret Misappropriation

We have reported on various aspects of the EU Trade Secrets Directive on this blog. The legal requirements for something to qualify as a trade secret, the misappropriation of trade secrets and the remedies that exist to rectify such misappropriation, as well as the protection of trade secrets during court proceedings have all been discussed. However, in order to be properly prepared for trade secrets litigation and enforcement – both in Belgium and across the EU – you also need to know what damages are potentially available for trade secrets misappropriation and more importantly what evidence will have to be shown to the court.

Continue Reading Enforcement of trade secrets in the EU: compensation and damages for trade secret misappropriation

The U.S. Justice Department indicted a man for allegedly conspiring to steal proprietary data from General Electric (“GE”) and produce and sell it in China.
Continue Reading DOJ Indicts Hong Kong Citizen in Attempted Trade Secrets Scheme

On March 1st, Florida Governor Ron DeSantis, along with GOP members of the state’s House of Representatives and Senate, announced legislation to address corporate espionage and foreign influence in Florida. In public remarks about the proposed legislation, Florida House Speaker Chris Sprowls expressed concern about the threat of China’s influence on local governments and university systems, stating “that there are no limits to the depths to which other countries, especially China, will go to steal our science and technology.”

Continue Reading Florida Lawmakers Seek to Address Corporate Espionage in Proposed Legislation

The Eleventh Circuit recently struck down an award of $4.5 million in damages after a jury determined that a manufacturer had misappropriated a shared trade secret.  AcryliCon USA, LLC (“AcryliCon”) and Silikal GmbH (“Silikal”) had a business relationship in which Silikal manufactured and AcryliCon distributed a proprietary flooring resin of superior compressive strength (1061 SW), and each claimed ownership of the 1061 SW formula trade secret to the exclusion of the other. While ownership of a trade secret is a critical issue in trade secret misappropriation claims, the Court did not address whether AcryliCon owned the trade secret because it determined that Silikal did not misappropriate the formula as a matter of law.

Continue Reading Trade Secret Misappropriation or Breach of Contract? It can be a costly distinction.