Cyber-security and data breaches are hot-button issues that recently received some well-deserved attention from the federal government. Last year we posted about the FBI’s efforts to combat economic espionage and trade secret theft. At that time, the Assistant Director of the FBI—who was testifying before a Senate subcommittee—offered salient advice on how American companies could … Continue Reading
In a previous post, we examined T-Mobile’s complaint against Chinese smartphone marker Huawei and its US subsidiary, in which T-Mobile accused Huawei employees of stealing trade secrets relating to a mobile phone testing robot named “Tappy”. T-Mobile filed its complaint in September 2014, and the following month Huawei’s US subsidiary responded with a motion to … Continue Reading
The recent decision in Wellogix, Inc. v. SAP America, Inc., No. 14-0741 (S.D. Tex. Nov. 10, 2014), demonstrates that federal courts can rely on contractual forum selection clauses to dismiss or transfer trade secret theft cases. It’s a reminder to weigh how these clauses could impact litigation strategies and to consider the specific language negotiated … Continue Reading
Key takeaway: Where appropriate, confidentiality agreements should include promises not to reverse engineer the disclosing party’s technology. Meet “Tappy”, the mobile phone testing robot. Designed by T-Mobile’s Bellevue, Washington, labs in 2006, its mechanical “finger” mimics user inputs for mobile phones. Tappy helps T-Mobile model how users interact with mobile phones, replicating days or weeks … Continue Reading
Picture this situation: your company is submitting a bid on a public contract, whether a technology acquisition, software development project, construction project, insurance quote, or financial services contract, to name but a few. Or picture responding to state and federal regulatory authorities that require disclosing company information concerning approval and licensing of your gaming establishment … Continue Reading
This post was originally published as an article in Volume 23 of the Louisiana Employment Law Letter. The U.S. Fifth Circuit Court of Appeals in New Orleans recently held that an employer’s policy for protecting its confidential and proprietary information was unlawful under the National Labor Relations Act (NLRA). Specifically, the Fifth Circuit held that a … Continue Reading
Perhaps the most significant of the employment law bills passed by the Louisiana Legislature this year is the “Personal Online Account Privacy Protection Act” signed into by Governor Jindal on May 23, 2014. Louisiana is now the 17th state to enact a “password protection law” aimed at protecting an employee’s personal online content included in … Continue Reading
Following up on his recent post, Micah sat down with Colin O’Keefe of LXBN to discuss Facebook’s potential purchase of a massive trade secret suit. In the brief interview, Micah explains the suit’s background and its potential impact on Facebook. Check out what Micah has to say. … Continue Reading
This is Part One in a three-part series on preventing unfair competition and trade secret theft by former employees. It’s an all too familiar story. A company spends substantial time and money training employees to run and manage a specific business division. The employees receive access to the company’s confidential information—customer contacts, pricing information, … Continue Reading
The U.S. Senate is not alone when considering whether to federalize trade secret law, as the European Parliament and Council will soon discuss proposed legislation aimed at normalizing trade secret law for EU member states. The European Commission proposed a draft directive to both the Parliament and the Council in November 2013, and now the European Council has … Continue Reading
A couple weeks ago, a company sued a competitor for allegedly stealing its trade secrets and hiring a key former employee, who developed the trade secret technology. But this is no run-of-the-mill trade secrets case. It involves some of the most pioneering figures within the gaming industry. ZeniMax Media, Inc., owner of id Software, LLC, publisher … Continue Reading
Over the last decade, smart phones, laptops, and tablets have become essential components for a successful business model. Many business leaders correlate increased mobile connectivity with increased productivity. In theory, remote access to company data allows employees to efficiently work anytime, anywhere. “Bring Your Own Device” (BYOD) policies have emerged as one of the most popular options … Continue Reading
Non-Disclosure Agreements are now staples for start-ups seeking funding from third-party investors. But entrepreneurs shouldn’t rely solely on NDAs to protect their nascent trade secrets. You must think beyond the agreement—especially in tech industries where competitive advantages go stale quickly. Two recent blog posts highlight helpful strategies for tech entrepreneurs to begin this process, though in … Continue Reading
A federal grand jury in Pennsylvania indicted five Chinese military officers for economic espionage and trade secret theft this morning. According to the indictment, the five officers engaged in an elaborate conspiracy to hack into the computer networks of five U.S.-based companies, as well as a labor organization, to steal trade secrets and proprietary information … Continue Reading
On May 13, 2014, before a Senate subcommittee, the FBI’s Assistant Director for the Counterintelligence Division testified about the bureau’s efforts to combat economic espionage and trade secret theft—which cause, according to the Office of the National Counterintelligence Executive, “tens or even hundreds of billions of dollars annually to the American economy.” Fighting economic espionage and trade … Continue Reading
Phillip Groves could face up to 40 years in jail and a $1,000,000 fine after a federal jury in Kentucky convicted him of violating 18 U.S.C. § 1832. That statute criminalizes converting a trade secret related to a product or service used, or intended for use, in interstate or foreign commerce if the conversion was intended … Continue Reading
Are published baseball card prices protectible as trade secrets? That’s one question raised in a lawsuit recently filed in Seattle, Washington. Beckett Media, LLC, a publisher of pricing and other information on collectibles and specialty products, sued Check Out My, LLC, the owner of COMC.com, which offers consignment services for collectible cards and other memorabilia. … Continue Reading
Are you confident in your ability to prosecute a trade secret case without losing those “secrets” in the process? The U.S. Fourth Circuit Court of Appeals’ recent decision should give you pause before answering. The Court’s holding in E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc., underscores the significant risks of putting evidence into the … Continue Reading
The U.S. Eastern District of Louisiana recently sided with employers in the on-going judicial debate over interpreting the Computer Fraud and Abuse Act (“CFAA”). See Associated Pump & Supply Co., LLC v. Dupre, et al., No. 14-0009 (E.D. La.). Associated Pump sued its former employee Kevin Dupre for violating CFAA during his alleged scheme to steal … Continue Reading
PricewaterhouseCoopers LLP (PwC) and the Center for Responsible Enterprise and Trade (CREATe.org) collaborated to access the economic impact of trade secret theft. Their recently published Report estimates that trade secret theft accounts for nearly 1-3% of the US GDP. This impact highlights that companies should focus on tightening internal safeguards to protect trade secrets information. The Report offers a … Continue Reading
The Office of Inspector General and a joint staff for two ranking Republican lawmakers recently issued critical reports on the FDA’s 2010-2011 employee monitoring for trade-secret leaks (see OIG and Joint Staff). They criticize the FDA for essentially “spying” on its employees without first assessing whether the computer monitoring may violate federal wiretapping laws and … Continue Reading
