Posts by: Editorial Board

These are Not the Trade Secrets You’re Looking For: Star Wars Model Maker Sues Ex-Employees for Misappropriation

In a tale of alleged betrayal and misappropriation of trade secrets in a courtroom (not) far, far away, a pioneering company in the area of special effects has sued its former employees and a vendor, claiming that they conspired to recreate the company’s primary business under a new name, erasing the evidence on the way out. The alleged tale is an illustration of how vulnerable a company and its trade secrets can be in times of ownership and business transition, especially when the company relies mostly on a single customer. READ MORE

Early Returns (Part 2 of 3): The DTSA Lifts Off

(Editorial Note: This is the second in our two-part series exploring recent litigation under the newly-enacted Defend Trade Secrets Act.)

We’ve been tracking the development of the Defend Trade Secrets Act (“DTSA”) for a while on TSW. It was only last month that President Obama signed the dotted line, and the DTSA became law. Now, Space Data has filed suit against Google for patent infringement, misappropriation of trade secrets under the DTSA, misappropriation of trade secrets under the California Uniform Trade Secrets Act, and breach of contract. We’ll be watching closely to see how the Northern District Court of California handles one of the first cases under the DTSA. READ MORE

The Gloves Are Off: Competing Biopics Battle For Hollywood Purse

Hollywood’s heavy-hitters often enter the ring over unauthorized biographies. Elizabeth Taylor famously invoked her rights of publicity and privacy in an attempt to shut down an unofficial docudrama about her life; Clint Eastwood sued the author and publisher of his unsanctioned biography for libel; and a film production company brought claims for copyright and trademark infringement against the producers of the biopic Lovelace starring Amanda Seyfried. Hollywood’s newest matchup involves misappropriation of trade secrets, a growing concern in the entertainment industry, especially after the recent Sony hack. READ MORE

Aviation Contractor Glides Away From Liability After Receiving Unsolicited Email Containing Trade Secrets

If a third party sends you someone’s trade secrets, and you delete them as soon as you know they’re trade secrets, you’re off the hook for misappropriation.

That, in a nutshell, is what a Florida federal judge held on January 14, when he dismissed Dyncorp International LLC’s allegations that rival contractor AAR Airlift Group, Inc. stole trade secrets to gain an unfair advantage in securing a multibillion-dollar government contract. The contract, which Dyncorp had performed for more than 20 years, was to provide aviation support to the U.S. State Department for its counter-narcotics operations. READ MORE

LOOKING BACK TO MOVE FORWARD: Need to Balance Trade Secret Protection and Judicial Transparency Remains Ten Years After Federal Court Reprimanded for Issuing Secret Opinion

Ringing in the New Year provides a unique opportunity to reflect on the past and look ahead to the future. This mirrors the day-to-day reality for legal practitioners: the future is shaped by precedent from the past. And in these early days of 2016, with the possibility of a federal trade secrets law looming in the proposed Defend Trade Secrets Act, it’s important to understand the tensions and limits surrounding trade secret law. READ MORE

Think Before You Tack CFAA Claims on to Your Trade Secret Misappropriation Case

Before you include a Computer Fraud and Abuse Act (“CFAA”) claim in a trade secret case, consider carefully: was the data acquired through “unauthorized access” or was it just misused by the defendants? If it was properly accessed (but later misused), your CFAA claim, and the federal question jurisdiction that comes with it, is in jeopardy. In SunPower Corp. v. SunEdison, Inc., Judge Orrick of the Northern District of California recently dismissed the plaintiff’s CFAA claim because the plaintiff failed to allege that the data was accessed without authorization, only that it was later misused.  Because the CFAA claim provided the basis for federal jurisdiction, Judge Orrick indicated that he would dismiss the entire case and not exercise pendent jurisdiction over the remaining thirteen state claims if the CFAA claim could not be properly amended. READ MORE

Orrick Launches New Cybersecurity Blog

We’re excited to announce Orrick’s new sister blog, Trust Anchor!

Trust Anchor highlights current topics in cybersecurity and data privacy, such as recent cases, legislative and regulatory developments, emerging standards, risk management strategies, and insurance coverage.  It’s not just news.  Instead, it aims to review new developments and offer actionable privacy and cybersecurity intel and strategies. READ MORE

Throwback Thursday: Why Trade Secret Theft Isn’t Just a Digital Problem And What Businesses Can Do About It

With stories of cyberattacks and data breaches on a seemingly endless loop, businesses and governments have been doubling down on their efforts to protect digital information and assets.  But, in some industries, the greatest threat might still be a pair of quick hands.  For instance, in the restaurant industry, opening the kitchen doors to a new employee creates real risks.  As we’ve discussed, sometimes the decision whether to print or download can have major legal ramifications.  And with computer forensics technology growing in leaps and bounds, sometimes an old-school paper trail might be more enticing to would-be perps than a digital one.  That said, the FBI has a track record of turning up bags of shredded documents in grocery store dumpsters. READ MORE

Once More, With Feeling! Congress Swings for the Fences with the Defend Trade Secrets Act of 2015

On July 28, broad bipartisan support ushered the “Defend Trade Secrets Act of 2015” onto the floor of both the House and Senate. This DTSA treads the well-worn path of many similar (and, to date, hapless) bills that fruitlessly preceded it. TSW has exhaustively covered prior attempts, aptly titling our first post “Pols Gone Wild: Congress Discovers Trade Secret Theft and Cybersecurity Are Problems; We Sort Through the Explosion of Legislation”—chart and all. READ MORE

One Step Closer: European Parliament Legal Affairs Committee Approves Trade Secret Directive

As Trade Secrets Watch has previously reported, new rules regarding the protection of trade secrets are on the horizon for the European Union. In November 2013, the European Commission announced a proposed Directive on trade secrets and confidential information. Around six months later, in May 2014, the Council of the European Union agreed on a revised draft Directive. Reception of the Trade Secrets Directive has been mixed. READ MORE