What happens when trade secret protections collide with laws granting public access to government records? This question took center stage in a recent case involving the Seattle Police Department (“SPD”). A federal district court enjoined the SPD from disclosing a software vendor’s allegedly trade secret information in response to a reporter’s public records act request. Besides serving as a reminder of the precautions that companies should take when disclosing intellectual property to public agencies, the case also raises interesting questions and strategic considerations. READ MORE
Public Disclosure Requirements
Senate Bill in Georgia Seeks to Expand Scope of Trade Secret Protection
On February 2, 2016, Georgia State Senator Hunter Hill introduced Senate Bill 321 in the Georgia Senate. The bill is entitled “Commerce and Trade; state government; protections against public disclosure of certain information.” The bill has 36 co-sponsors, all of whom, like Hill, are Republican. READ MORE
DEFENSES AGAINST FOIA: Non-Profit Planned Parenthood Succeeds In Keeping Operations Manual Secret
When inquiring minds want to know, non-profit organizations now have a stronger response. Last year, we posed the question: Can a non-profit maintain trade secrets and other confidential commercial information? The First Circuit recently answered our question: “yes.” READ MORE
Settlement Reached in Wyoming Fracking Disclosure Lawsuit: Heavier Burden of Proof for Companies Claiming Trade Secret or Confidentiality Protections
As we’ve previously discussed, a patchwork of state regulations requiring disclosure of chemicals used in fracking have been enacted by several states in recent years. One such regulation was by the State of Wyoming. While environmental groups initially lauded Wyoming’s new rule, the applause was short-lived as the Wyoming Oil and Gas Conservation Commission began granting trade secret exemptions that prevented disclosure of this information to the public under the state public records act. This led the environmental groups to sue the Commission. After nearly three years of litigation, including an appeal to the Wyoming Supreme Court, the parties reached a settlement that was approved by the state district court late last month.
Highly-Protected Secrets: Competitors Try to Keep Legal Secrets in the Quasi-Legal Marijuana Industry
How do you use the law to keep something unlawful a secret? This and related questions arise as more states legalize marijuana for medical use, recreational use, or both. As an illicit industry emerges from the shadows, competition and the substantial investments necessary to grow, package, and sell marijuana were bound to get rolled up in trade secrecy law at some point. READ MORE
FLORIDA SUNSHINE? State High Court Orders Gerrymandering Documents Made Public, Justice Thomas Rejects Last-Minute Appeal
This past summer, we reported on an emergency petition to Justice Clarence Thomas of the United States Supreme Court to stay a Florida Supreme Court’s decision permitting disclosure of documents submitted under seal during a trial challenging Florida legislature’s redistricting process. The emergency petition was filed by Patrick Bainter and Data Targeting, Inc., political consultants hired by the Republican Party of Florida to assist with the redistricting process in that state. At issue in the petition were more than 500 pages of documents that purportedly contained confidential READ MORE
Hedge Fund Hack Results in Trade Secret Loss, and Raises SEC Reporting Issues
Data breaches may be nothing new, but they are certainly evolving into bigger and more notorious infractions. While the data breaches of yesterday may have involved accidental disclosure or disgruntled former employees, the data breaches of today are often carried out by outsiders and highly organized and sophisticated criminal groups. And hackers aren’t just after credit card information, they are often seeking proprietary information. In short: trade secrets, watch out. READ MORE
North Carolina Enacts Criminal Penalties for Disclosure of Fracking Trade Secrets
North Carolina is officially open for fracking, after lifting a ban on the practice—and enacting criminal penalties for spilling trade secrets associated with it. With passage of the Energy Modernization Act, North Carolina joins the growing ranks of states that have legislated to protect confidential fracking information.
North Carolina’s new law prompted us to update our chart summarizing the key provisions of similar legislation in other states. It can be seen here. READ MORE
Pyrrhic Victory For Parties Seeking Fracking Fluid Disclosures
Parties advocating public disclosure of the chemical makeup of fracking fluids may have won a recent battle in Wyoming, but are they losing the war? On March 12, 2014, the Wyoming Supreme Court in Powder River Basin Resource Council v. Wyoming Oil and Gas Conservation Commission reversed a district court’s order exempting fracking fluid information from public disclosure. The court made two key findings. First, the court clarified that parties seeking disclosure in Wyoming are entitled to de novo district court review of administrative decisions exempting fracking fluid information from disclosure as trade secrets. Second, it held that the “narrow” definition of trade secrets under FOIA applies to exemption claims. READ MORE
Green Chemistry and Trade Secrets: California Leads Chemical Disclosure Movement, As Companies Wrestle with Options for Protection
Earlier this year, we picked mandatory public disclosure laws as a trend to watch in 2014. Developments in California seem to bear that out, and trade secrets owners will want to keep a close eye on the “green chemistry” movement and expanded public disclosure requirements for manufacturers of a wide range of consumer products. Companies that make or sell products in California — ranging from electronics and household cleaners to children’s toys and cosmetics — will need to map out a plan that complies with the new requirements while at the same time protecting their valuable intellectual property, including trade secrets. READ MORE