Non-Compete

New Year’s Resolutions for Companies Seeking to Protect Their Trade Secrets in 2015

James McQuadePosted on January 8, 2015

The start of a new year is a perfect opportunity to set lofty goals of self-improvement. While the odds of completing a New Year’s resolution aren’t exactly inspiring (over half are expected to fail within six months) studies still show that people who make specific resolutions are more likely to achieve their goals than those who don’t. The payout for making a specific plan (particularly when it comes to protecting trade secrets) can be quite rewarding. READ MORE →

New Strings Attached: LinkedIn Contacts Are Now Trade Secrets?

Editorial BoardPosted on October 27, 2014

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 →

FOURTH OF JULY EDITION [FROM THE ARCHIVES]: Family Fireworks: Plot to Steal Client Lists Goes Up in Smoke

Editorial BoardPosted on July 3, 2014

As Americans head for the beach or the barbecue to celebrate the Fourth of July (many with a bolstered sense of patriotism following the United States’ valiant World Cup efforts), Trade Secrets Watch marks this Independence Day by pulling an explosive story from its archives.

Pyro Spectaculars North, Inc. v. Souza is a case that’s full of fireworks—literal and figurative—as a family pyrotechnics business broke apart, with one member starting a rival company, apparently armed with a USB and a hard drive of purloined client lists and other company files. You can read our full post below the jump.

We wish all our readers and safe and happy holiday weekend. We’ll return to our regular blogging and tweeting schedules on Monday. READ MORE →

PAPER OF RECORD: A Trade Secret Watch Editor Takes up Non-Competes in the NYT

Editorial BoardPosted on June 12, 2014

TSW editor Mike Weil takes to The New York Times to explain how non-compete agreements protect the legitimate business interests of employers but must also balance the rights of former employees and the public.

NEW MASSACHUSETTS BILL: Promoting “Growth and Opportunity” or Poisoning the Business Environment?

Editorial BoardPosted on April 23, 2014

On April 10, 2014, Massachusetts Governor Deval Patrick proposed a bill entitled “An Act to Promote Growth and Opportunity.” Under this lengthy bill, Massachusetts would finally adopt the Uniform Trade Secrets Act, to which only it and New York currently do not adhere. But the provisions of the bill relating to non-competition agreements are what have received the most attention from the businesses community.

Under the proposed legislation, with the aim of increasing mobility of labor, non-competition agreements between Massachusetts employers and employees or independent contractors would be impermissible and void: READ MORE →

THANKSGIVING POST: Court Protects Quizno’s Franchise Turkey Trade Secrets

Editorial BoardPosted on November 27, 2013

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship.

In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an enterprising fellow who wanted to open up a Quizno’s sandwich shop in St. Charles, Illinois. Unfortunately, Kampendahl didn’t keep his food equipment clean, used unapproved foods, and had safety and sanitation problems, so Quizno’s terminated the franchise agreement. Upon termination, Kampendahl was subject to a covenant not to compete that prohibited him from opening a competing sandwich shop within five miles. READ MORE →

FOURTH OF JULY EDITION: Family Fireworks: Plot to Steal Client Lists Goes up in Smoke

Michael DisotellPosted on July 3, 2013

For many, Fourth of July festivities wouldn’t be complete without a baseball game, a family barbecue, and of course, fireworks. But for one family-operated fireworks company in California, its members had an unhappy reunion in court when a great-grandson’s decision to leave the family business exploded into a dazzling dispute over trade secrets.

According to court papers, Manuel de Sousa and his family immigrated to the San Francisco Bay Area from Portugal in the early 1900s and set up a fireworks business for local Portuguese community celebrations. Manuel eventually passed the family business to his son Alfred, who then passed it on to his grandson Bob.