Christopher Hughes worked for Age Industries, Ltd. (“AI”) for nearly 20 years. He was the general manager of one of AI’s branch facilities and a limited partner of the company. In this role, Hughes had access to much of AI’s proprietary and trade secret information, including specialized customer pricing information, financial reports, and business strategies. After leaving AI, Hughes became the operations manager of a new competitor in the corrugated packing materials market—Diamondback Corrugated Container, LLC. READ MORE
On Thursday, Waymo LLC sued Uber Technologies and Ottomotto LLC in federal court in the Northern District of California for: (1) violation of the federal Defend Trade Secrets Act; (2) violation of California’s Uniform Trade Secrets Act; (3) Patent Infringement; and (4) Violation of Section 17200 of California’s Business and Professions Code. Waymo is a subsidiary of Alphabet Inc. that specializes in self-driving cars.
According to Waymo’s complaint, one of its former managers, Anthony Levandowski, downloaded more than 14,000 highly confidential and proprietary files shortly before his resignation in January 2016. Those files allegedly related, among other things, to Waymo’s proprietary LiDAR system, which, when mounted on a vehicle, “enable[s] a vehicle to ‘see’ its surroundings and thereby allow[s] a self-driving vehicle to detect traffic, pedestrians, bicyclists, and any other obstacles a vehicle must be able to see to drive safely.”
Waymo claims that it caught wind of the alleged misappropriation recently when one of its LiDAR component vendors inadvertently copied Waymo on an email depicting Uber’s LiDAR circuit board. According to Waymo, Uber’s LiDAR circuit board “bears a striking resemblance to Waymo’s own highly confidential and proprietary design and reflects Waymo trade secrets.”
Given the technology at issue and the players, this is a case that will be fascinating to watch. We’ll keep you posted.
In recent years, the craft beer craze has taken ahold of the country and has resulted in an explosion of new microbreweries and enthusiasts. Several websites, like BeerSmith, allow users to share recipes with others; other websites, like BrewCraft, sell their recipes for home brewing. In fact, some craft beer aficionados have even created beer trading exchanges to secure their hard-to-find favorites. Even when a popular beer is discontinued, other microbrewers look to fill the void left on everyone’s taste buds with beers of their own. For instance, when Russian River’s legendary craft brew Pliny the Elder was pulled from certain markets, craft brew fans raced to find similarly tasting alternatives to quench their thirst.
Within days of each other, your clothing company―Free Country Ltd.―loses two employees who decamp to a rival to set up a competing apparel line. You discover that just before leaving, they transferred some 50,000 documents to a personal account—customer orders, your master contact list, and product design information. Incensed, you file a trade secrets lawsuit and seek an injunction prohibiting the thieves from soliciting your customers. Their defense amounts to, “so what if we took the documents―it’s a free country!” Easy win, right? Wrong. These are the facts of a recent trade secrets lawsuit in the Southern District of New York, in which the court denied the plaintiff’s request that its former employee defendants be prohibited from soliciting plaintiff’s customers. READ MORE
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
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
Something lost is always in the last place you look (by definition). It can also sometimes be in the first.
Although technology has made it possible for outsiders to manipulate and infiltrate your company’s systems and obtain confidential and trade secret information in novel and subtle ways, a lingering, persistent threat to a company’s confidential information and trade secret comes from unhappy employees, both during the time of their employ and after separation. READ MORE
Sergey Aleynikov’s six-year odyssey through the U.S. judicial systems—both federal and state—continues. Last week, Aleynikov stepped into a New York State courtroom to defend himself at trial against a pair of criminal charges stemming from his 2009 arrest for allegedly stealing source code for one of Goldman Sachs high-frequency trading platforms. If convicted on the two counts – unlawful use of secret scientific material and unlawful duplication of computer-related material – Aleynikov could face a return trip to prison for up to eight years. READ MORE
President Obama wants to go where the Supreme Court refused to tread. As part of his cybersecurity and privacy initiatives, which we discussed last week, the President would strengthen the federal anti-hacking provisions of the Computer Fraud and Abuse Act (CFAA), including an expansion of activity covered by the statutory phrase “exceeds authorized access.” In so doing, the President would resolve a circuit split between the First, Fifth, Eighth, Seventh, and Eleventh Circuits, on the one hand, and the Ninth and Fourth Circuits, on the other. His reason? “No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families.” READ MORE