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Diamonds Are Forever, but Joint Ventures Are Not: Court Finds Claims Preempted by CUTSA in Business Deal Gone Bad

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The holiday season is officially upon us: peppermint mochas have popped up on coffee shop menus, carols ring from department store speakers, and you can’t turn on the television without seeing at least three diamond commercials. But it’s not all yuletide and merriment for those in the diamond business. As one diamond importer and wholesaler recently learned, sometimes instead of a gem you get a lump of coal—in this case, from the Northern District of California, which tossed out certain claims against a former business partner on the grounds those claims were preempted by the California Uniform Trade Secrets Act. READ MORE →

Trade Secrets Unwrapped: Packaging Materials Case Demonstrates The Importance Of Keeping Confidential Information Sealed Shut

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There are many ways to gain trade secret protection, but also many ways to lose it. As the recent motion to dismiss ruling in Fleetwood Packaging v. Hein from the Northern District of Illinois illustrates, how a company vacuum packs its confidential information can make all the difference between preserving it and watching it get spoiled by a competitor. READ MORE →

Win At All Costs?: A Glimpse Into Trade Secrets In The Sports And Entertainment Industry

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It is one of those magical times during the year when sports fanatics can enjoy three major American sports all at the same time: the MLB playoffs are in full swing; the NFL season has finally kicked off; and the NHL saw the puck drop for the first regular season game a couple weeks ago. But between the throngs of fans cheering (or booing) their teams, we at TSW wanted to take a moment to reflect on the sophisticated trade secrets disputes that are at the heart of the sports and entertainment industry. READ MORE →

Filer Beware! E-Filing Error Can Destroy Trade Secret Status

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First rule of thumb in trade secrets litigation? A trade secret must be kept secret. It is painfully obvious, but modern practitioners must not grow complacent due to the convenience of electronic filing. Although trade secrets law does not command absolute secrecy, a recent e-filing snafu in HMS Holdings Corp. v. Arendt offers a cautionary tale from New York on how one botched upload could jeopardize a client’s most prized possession. READ MORE →

Securing your Network: Claiming Contacts as Trade Secrets

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The paradigmatic trade secret is something that is obviously technical, such as source code or the formula for Coke.  Though trade secrets protection is not limited to technical trade secrets, it can sometimes be tricky to claim trade secrecy over non-technical trade secrets, such as customer or employee contact lists, that are commercially valuable yet may seem more accessible and therefore less secret.  California Code of Civil Procedure Section 2019.210 compounds the issue by requiring a plaintiff to make a detailed disclosure of trade secrets as a precondition to frame the discovery to come.  Section 2019.210 therefore immediately places an often-challenging decision upon the plaintiff—selecting what it should claim as trade secrets in litigation. READ MORE →

SHREDDING TRADE SECRETS: Heli-Ski Operators Fret over FOIA Disclosures Releasing a Blizzard of Confidential Information

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Heli-skiing: it’s the holy grail for thrill-seeking skiers and snowboarders.   Ride to the roof of the world aboard a helicopter.  Descend thousands of vertical feet through fresh, untracked powder.  No lift lines, no ski patrol.

This is what heli-skiers pay upwards of $1,000 per day to see.  What they don’t see is the heli-ski tour company owner, back at the office fretting over his trade secrets.

These fly-by-day firms have many of the same trade secrets concerns as the technology companies, restaurateurs, fragrance makers, executive recruiting firms and countless other businesses we regularly write about.  READ MORE →

CHRISTMAS EDITION [FROM THE ARCHIVES]: Trade Secrets Litigation Delayed to Save Christmas?

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On Christmas, Santa and his elves have their work cut out for them and sometimes even they can use help to get their jobs done. During the holiday season, a variety of businesses assist Santa & Co. to import and distribute Christmas merchandise and other seasonal goods to retail stores in time for the holidays. Unfortunately, those companies can be as susceptible to a trade secrets dispute as anyone else, and one year just such a dispute threatened to put a damper on Christmas. READ MORE →

New Strings Attached: LinkedIn Contacts Are Now Trade Secrets?

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From a birds-eye view, Cellular Accessories For Less, Inc. v. Trinitas, LLC appears to be a typical dispute between an employer and its former employee. However, a closer look reveals an issue new to the world of trade secrets—specifically, do LinkedIn contacts qualify as trade secrets? For now, they may: a federal judge in the Central District of California denied defendants’ motion for summary judgment last month, finding there were triable issues of material fact surrounding the question whether LinkedIn contacts were protectable trade secrets. READ MORE →

WORLD SERIES EDITION: These Trade Secrets Are Going, Going, Gone

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Ah, October: the time of crisp fall air, brightly colored leaves, and pumpkin spice-flavored everything. And, of course, the World Series quest that can unite a city—or, in the case of Orrick’s San Francisco and Washington, D.C. offices, give rise to a friendly wager (sorry, D.C.!). In honor of the baseball playoffs, we take a look at some trade secret issues related to our national pastime.
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We Have Your Data. Pay Up or Else…

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You wake on a Tuesday morning expecting to have an average day at work.  You are skimming through the emails that came in while you were asleep, when you notice an email from one of your employees.  He is not only giving his resignation, but is also, more importantly, demanding a ransom in exchange for not disclosing company trade secrets and other highly confidential information.  What do you do?
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