On September 2, 2020, a Southern District of California judge granted Defendant Road Runner Sports, Inc.’s motion to dismiss, finding that Plaintiff, Profade Apparel, LLC, failed to state a trade secret misappropriation claim under the federal Defend Trade Secrets Act (“DTSA”).
At Road Runner’s request, Profade designed a “Trigonomic Arch Support Sock” for sale in Road Runner running stores. But, after ordering just a few small batches of the socks, Road Runner allegedly stopped buying the socks from Profade. According to Profade, Road Runner then contracted with a separate vendor to manufacture socks using Profade’s design.
In asserting a DTSA claim, Profade described its trade secrets as “proprietary and confidential information regarding the development, design, and manufacture of the Trigonomic Arch Support Sock.” It also claimed Road Runner misappropriated the “roadmap” for producing the Trigonomic Arch Support Sock. To support these allegations, Profade attached a contract between the parties to its complaint. The contract contemplated the parties exchanging confidential information relating to the socks’ design and production.
Continue Reading Beep, Beep: Road Runner Escapes DTSA Claim, for Now